Business Infrastructure Nigeria Taxes & Duties

FG authorises MTN’s N202.8bn tax to finish Enugu-Onitsha Expressway

The Federal Executive Council (FEC) has approved MTN Nigeria PLC, a telecommunications operator, finishing the ongoing Enugu-Onitsha expressway at a cost of N202.8 billion using the Federal Government’s Tax Credit Scheme.

This information was provided to the State House reporters by Minister of Works and Housing Babatunde Fashola, Minister of Police Affairs Maigari Dingiyadi, and Media Assistant to the President Malam Garba Shehu.

President Muhammadu Buhari presided over the meeting on Wednesday in the Council Chamber of the Presidential Villa in Abuja.

Fashola said: “Today, we have two more. So, the first that was approved today was the one by MTN Nigeria PLC, the telecommunication company to take over and complete the ongoing Enugu -Onitsha expressway.

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”That road is a 110km, which is being dualized. So, you have 110km times two. The outstanding works aggregate to about 91 point something kilometres on both sides, if you accumulate it for those who use the road.

”You will see that the Enugu bound section has been largely completed but there’s a lot of work to be done on the Onitsha section.

”So this policy is going to allow a steady and sustained stream of funding to completion by MTN and the amount approved is N202,887,436,672,11 billion to complete the outstanding works of an aggregate of 91.9km on both sides.”

The minister further revealed that a similar tax credit method was used by the Council to authorize the reconstruction of the Umuchi-Ususu-Umueme GZ Industries Road in Abia by the GZ Industries firm for a cost of N4.2 billion.

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He said: ”The second memo also was under the Tax Credit Scheme and while the first one was related to the road linking  Anambra and Enugu states, this one is with respect to a road in Abia.

”Now the road is called Umuchi -Ususu-Umueme GZ Industries Road in Abia.

”The private sector beneficiary of the approval is a company called GZ Industries.

”GZ Industries manufactures aluminium cans for bottling drinks. They have a factory in Agbara in Ogun and they have another one in Abia in this area. So, it’s a link road to their factory.

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”The approval was for N4.205,454,855billion. The road is a 3.7km road. So it’s an access road to their Industry. Council approved both memoranda.”

Maigari Dingyadi, the minister for police affairs, also revealed that the Council had given N4.5 billion in approval for the purchase of utility vehicles for the Police Trust Fund.

He claims that the funds approved will pay for both the purchase of the automobiles and their insurance.

”I’m happy to announce that the Federal Executive Council has today approved the award of contract for the Nigeria Police Trust Fund for the supply of vehicles and insurance cover for several other vehicles at a total cost of N4, 541,829.17.

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“The vehicles consist of land cruisers, Toyota Prado 2021 model and Toyota Camry. The land cruisers are about eight in number while the Prado are eight in number also, and then the Toyota Camry vehicles are about 44 in number.

“The Vehicles will be supplied at the cost of N1, 200,400,000.24 , The cost of fueling of the vehicles has also been approved at the total cost of about 5,093,770 litres at the cost of N1, 039,169,880 respectively.“

According to him, the affected vehicles are to be used for patrols and tactical operations to tackle security challenges across the country.

“The insurance cover is intended to cover all the vehicles purchased by the police Trust Fund between 2020 and 2022, involving about 450 vehicles, assorted vehicles for that matter, also at the cost of N812, 309,823.93.

”This is what has been approved for the police Trust Fund at the just concluded Federal Executive Council,” he said.

Shehu revealed that the Council had approved Convention 181 of the International Labor Organization.

He asserts that the agreement protects the rights and dignity of low cadre workers, like as domestic help.

He said: “The council ratified the International Labour Organization’s convention 181.

”Essentially, it seeks to permit the operations of private employment agencies in countries. If this is carried through, Nigeria will be the 3rd African Country after Ethiopia and Morocco to approve such.

“This is about the protection of the rights of persons employed by individuals as house helps with some of them being treated as slaves.

”Government is interested in their being treated with decency, respect and dignity,” he said.

Shehu also disclosed that a second document for the adoption of the updated National Policy on Labor Migration had been authorized by the Council.

The media assistant claims that this also safeguards the rights of Nigerians working abroad as foreign workers while they are based in Nigeria.

He said: The second memo by the Labour Ministry; which has been approved is for the adoption of the revised National Policy on labour migration and its action plan.

“This is also about the protection of the dignity of Nigerians and it is a two-way thing. Nigerian government is interested in protecting migrant workers who are here with us and our people who work out there.

”They shouldn’t be treated as slave or discriminated anyhow in so many respects.

“Certainly the policy seeks to confront the challenges of illegal migration and employment, exploitative tendencies, forced labour, smuggling and human trafficking in our society and entrenching general obligation to respect human rights of human beings.

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