FG Allocates N185bn From NNPC’s N621bn Tax Credit To Calabar-Itu Highway Project

Out of the N621bn raised from tax credit window by the Federal Inland Revenue Service, from the Nigerian National Petroleum Company Ltd to fund critical infrastructure in the country, the Federal Government has approved the sum of N185bn for the construction and dualisation of the Calabar-Itu highway.

The Senior Special Assistant to President Mohammadu Buhari on Niger Delta Affairs, Senator Ita Enang, disclosed this after a tour of the project.

Recall that the Corporation had in October expressed interest to invest in the reconstruction of selected federal roads in order to sustain a smooth supply and distribution of petroleum products across the country.

The road construction project which is being executed under the tax credit scheme is funded through the Federal Inland Revenue Service in accordance with Mr President Muhammadu Buhari’s executive order 7.

Under the programme, the NNPC would construct a total of 1,804.6 kilometres of roads at a total cost of N621,237,143,897.35.

Enang said the construction and dualisation of the Calabar-Itu highway project was awarded in three tranches, adding that the first phase was awarded to Julius Berger for N54bn.

According to him, the construction company has started work on the axis between Odukpani in Cross River State and Ibiono in Akwa Ibom State.

He added that the sum N52bn was approved for the Chinese Civil Engineering and Construction Company while SEMATECH was given the sum of N79bn for road construction and four bridges.

Enang attributed the delay in the construction of the road to lack of funds, but assured stakeholders that with the funds readily available the project would be completed with dualised carriage by April 2023.

He said, “We have been having problems of getting funding for the road, but Mr President has asked me to assure you that we raised money from the tax credit window from the Federal Inland Revenue Service to the NNPC to fund critical infrastructure, mainly road infrastructure.

“Out of the over N600bn raised from the NNPC as tax credit, a great part-that is N185bn-has been dedicated to this road. The road was awarded in three tranches. The first money that was available was N54bn and was for Julius Berger, N52bn to CCECC and the last N79bn to SEMATECH Engineering.

“This road was designed for dualization since 1972 and only one lane of the four lanes was constructed believing that others would be constructed since then. Thank God, President Mohammadu Buhari has started constructing other lanes with four bridges and he has promised to complete it within the time frame.”

He urged the people to be patient and cooperative with the contractors handling the project.