Dangote Group to re-construct 4 Federal roads, 2 in South-East

Chris Uba

As part of the measures to upgrade the level infrastructural across the country, the Federal Government has ,recently, allocated four key roads, two in the South-East, to be constructed by Dangote Industries Limited (DIL), a member of Dangote group of companies.

According to the directive  of the Federal Government ,all  the four roads allocated to DIL, span a distance of 271.72 kilometres.

Going by the approval  given by President Muhammadu Buhari,  DIL is to engage in the re-construction of Ohafia-Arochukwu road in Abia/Akwa Ibom States; re-construction of Enugu-Onitsha Expressway Road in Enugu/Anambra States; the construction of deep seaport access road through Epe to Sagamu-Benin expressway, and the construction of Kaaba-Ekiti Boundary road in Kogi/Ekiti states.

It would be recalled that in 2019, following President Buhari’s approval, DIL undertook the re-construction of the 34 kilometres Apapa Oshodi-Oworonshoki-Ojota road in Lagos State, and also the 43km re-construction of Obajana-Kabba road in Kogi State, while the Nigerian Liquefied Natural Gas Limited (NLNG) undertook the construction of Bodo-Bonny road and bridges across Opobo Channel in Rivers State.

 In the meanwhile,  DIL has already completed the 43km Obajana-Kabba road, eliciting encomium  from motorists and other road users.  The road, which was described by motorists as the country’s most strategic highway that is aiding travelers moving between the North and the South, is a concrete road that was built to last longer than asphalt roads, and does not have potholes.

The Site Engineer, Samuel Obosi, who spoke  in a chat with the media recently, assured that the dual carriageway would be durable and less susceptible to potholes and repairs like asphalt roads, which will also greatly reduce the rate of road accidents. Obosi said  also  the DIL is undertaking  many road projects to beef up the road infrastructure  across  the country.

Some motorists said it is now one of the busiest roads. “Thank God it is a concrete road. It can withstand any heavy-duty vehicle,” a heavy-duty- vehicle driver said. Another motorist, another and  member of the National Union of Road Transport Workers, said his transport  business is booming compared to when the road was in a bad state and barely used.

 The spokesperson of the Apa Bunu Kingdom, Sam Omosayil, who spoke  to Oracle News  , recently, commended Dangote Group,  saying  that the  road  has attracted a lot of businesses along it. The Bajana of Obajana Land, King Idowu Senibi, also described the project as gigantic and the first of its kind anywhere in Nigeria.

Media reports  said  that  the traditional head of Akpata Land, Frederick Durojaiye Balogun, said his people are very proud of Alhaji Aliko Dangote, adding that the Dangote Cement, Obajana plant, which is the single largest cement plant in the world, has brought honour and respect to their kingdoms.

 Reports also  said that  the King of Okebunku Land in Kabba Bunu Local Government, Timothy Omonile, commended Dangote and charged other philanthropists to emulate him.

In another development , the Federal Executive Council (FEC), on Wednesday, approved the award of road contracts to DIL at the cost of N309.9 billion.

The five  road projects with a combined total length of 274.9 kilometres of federal roads under the Federal Government Road Infrastructure Tax Credit Policy will be handled by Dangote as tax credit.

 The Minister of Works and Housing, Babatunde Fashola, who stated this during a briefing of State House correspondents on Wednesday in Abuja after the FEC meeting presided over by President Muhammadu Buhari,  explained that the road contract, which was the second approved for his ministry by the council, would be implemented on concrete and would be the largest of such projects in the country.

Fashola said that this initiative by the Federal Government is also part of its multiple funding options with the private sector.

He said, “The second memorandum presented by the Ministry of Works and Housing was for the construction or the reconstruction, as the case may be, of five road projects in favour of Messrs. Dangote Industries Limited, totalling 274.9 kilometres of federal roads, under the Federal Government Roads Infrastructure Tax Credit policy, which is one of our strategic partnerships with the private sector.

Those five roads totalling 274.9 km will cost N309,917,717,251.35 to be advanced by the Dangote Industries as a tax credit.”

Going further, the Minister listed the roads to include Bama to Banki in Borno State for N51.02 billion running into 49.15km; Dikwa to Gamboru-Ngala, 49.58km, in Borno State for N55.5 billion; and the Nnamdi Azikiwe Road, popularly known as Western Bypass in Kaduna, 21.48km, from Command Junction to Kawu, in the sum of N37.56 billion.

Others are the deep seaport access road sections 1 and 3 in Lagos State, through Epe to Shagamu Expressway, 54.24 km, that links Lagos and Ogun states, in the sum of N85.84 billion; the Obele/Ilaro/Papalanto to Shagamu Road, 100km, in Ogun State, in the sum of N79.99 billion.

He also said, “Council considered and approved this memorandum, to facilitate the construction of 274km of concrete roads. So, this will be the largest single award of concrete roads ever undertaken by the government of Nigeria in one award.”

While speaking on the conditions surrounding the contract, Fashola said, “First of all, the award is consistent with our multiple funding options, which includes engagement with the private sector.

Secondly, the tax credit initiative was in existence in the last administration before this government but was not utilised. So, this administration has revised it, expanded it, and has used it to construct roads like the Apapa Wharf Road, the Oworonsoki to Apapa, through Oshodi Road, by the same Dangote Group.”

Similarly, it can be recalled that in April 2021, the Federal Inland Revenue Service (FIRS), announced the issuance of tax credit certificates valued at N22.321 billion to Dangote Industries.

The tax credit certificates were for the construction of Apapa-Oworonshoki-Ojota road in Lagos and the Lokoja-Obajana-Kabba road that goes through Kogi and Kwara States.

The issuance of tax credit certificates followed the signing of Executive Order 07 of 2019 by President Muhammadu Buhari, which is on road infrastructure tax credit.

The order encourages companies to develop infrastructure around their operational area as long as it will enhance their delivery and their businesses.

Under the Credit Tax Scheme, participating companies are to recover the cost incurred by them in the construction or refurbishment of eligible roads as credit against Companies Income Tax (CIT) payable.

Dangote Group was  voted 2020 best company in CSR, infrastructure development. Also , in recognition of its 2017 Sustainability Report and significant progress in Sustainability Best Practices and Reporting in 2018, Dangote Industries Limited (DIL) received two awards at the 12th edition of the annual Sustainability Enterprise and Responsibility Awards (SERAS), which took place in Lagos Nigeria.

Two DIL subsidiaries received the SERAS Sustainability Awards for ‘Best Company in Hunger & Food Security’ as well as ‘Best in Supply Chain Management’ categories. In special recognition of its pioneering Sustainability Journey in 2018.