The 19th virtual Federal Executive Council (FEC) chaired by President Muhammadu Buhari has approved additional N8 billion for the Kano-Wudil-Shuarin section of the ongoing contract for the dualisation of Kano-Maiduguri road.
The Minister of Information and Culture, Lai Mohammed, who announced this on Wednesday after the weekly cabinet meeting, said the variation in the section one area of the 560 kilometers road project between Kano and Maiduguri had brought the total cost of the contract to N63 billion.
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Mohammed, who said the section awarded was more of approval for an estimated total cost, explained that the Minister of Works and Housing, Babatunde Fashola, sought “for a revision and an increment in the sum of N8 billion” which was approved by the council.
The minister said the sum of N22,247,332,000 was also approved for the award of contract for the reconstruction of the Apapa-Oworonsoki-Ojota Phase Section II, an 8.1kilometer stretch road.
Mohammed said: “I want to report that he (Fashola) presented a memo which was approved in council today for the award of a contract for the reconstruction of the Apapa-Oworonsoki-Ojota Phase Section II, which is bit land Interchange, 8.1 kilometer stretch.
“You will recall that in 2018, the Federal Government approved an award of contract to Dangote Industry for the sum of N72 billion. By the time the award was made, there was this Section of the road that was in fairly good condition. But with the construction of the Oworonsoki project coming to an end, it now makes better sense to include that section which was fairly good.
“This contract was awarded today for the sum of N22,247,332,000. But you must know that this is one of the projects being awarded under Infrastructural Tax Credit Scheme. In other words, it is awarded to Dangote and Dangote will construct it and over the years, it will be deducted from the tax payable by the group.
“It is one of various means of PPP that this administration has embraced. It is not only restricted to Oworonsoki-Apapa road, it is the same system that is being used in Obajana-Kaba road. Nigeria Liquified Natural Gas (NLNG) is also using the same formula for the bridge to link Bonny and Boro in Rivers State.”
Also briefing, the Minister of Transportation, Rotimi Amaechi, said the FEC also approved the sum of N1,208,335,464.60, inclusive of 7.5% tax for the supply, deployment, installation, testing and commissioning of security equipment for seven railway stations.
The stations are mainly Idu, Rigasa, Jere, Kubwa, Kaduna and Kano in favour of Messrs Avonics Services Nigeria Limited, with a completion period of 12 months.