Headlines

Tax Credit: NNPC’s N1.6trn quest to fix Nigerian roads

Group Chief Executive Officer of the Nigerian National Petroleum Company Ltd, NNPCL, Mallam Mele Kolo Kyari, inspecting rehabilitation work progress on the Lagos-Badagry Road, as part of the 21 roads funded by the NNPC Limited under the FG’s Federal Roads Infrastructure Tax Credit Scheme.

Bayo Amodu

While Nigeria boasts of the largest road network in Africa, only about 60,000km out of its estimated 195,000km road network is paved. Some of the roads are either in a state of disrepair, poorly maintained or altogether untarred.

As part of the Federal Government’s efforts to improve the condition of road infrastructure and transportation in the country, it introduced Executive Order 007 which was signed by President Muhammadu Buhari on January 25, 2019.

The instrument brought about the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme with the objective to unlock funding from the private sector for critical road infrastructure in the country.

Executive Order 007 was designed to empower private companies to finance the construction or refurbishment of federal roads designated as “Eligible Roads” under the scheme and recoup their investments through the deduction of the approved total costs expended on the project from their annual Companies Income Tax.

The Road Infrastructure Scheme is a Public-Private Partnership (PPP) intervention that enables the Federal Government to leverage private sector capital and efficiency for the construction, and refurbishment of critical road infrastructure in key economic areas in Nigeria.

Participants under the arrangement were entitled to utilise the total cost, referred to as “Project Cost”, incurred in the construction or refurbishment of an eligible road as a tax credit against their future Companies Income Tax (CIT) liability until full cost recovery is achieved.

Like any other responsible corporate citizen, the NNPC prioritizes road infrastructure as part of its Corporate Social Responsibility (CSR) Projects and became one of the companies that have keyed into the initiative.

The NNPC had 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.

A few months after announcing the release of N621 billion to revamp selected Nigerian roads, the company is planning to invest over N1 trillion for a similar purpose. In the first phase, the NNPC was expected to construct a total of 1,804.6 kilometres of roads at a total cost of N621,237,143,897.35, with the North-central getting the highest chunk of N244.87 billion and the South-south emerging the second highest beneficiary of the NNPC roads project with the sum of N172.02 billion.

In addition, the South-west has a total allocation of N81.87 billion; it’s N56.12 billion for the North-East, while the South-East has N43.28 billion allocation. The North-west was allocated N23.05 billion.

The Group Chief Executive, NNPC Limited, Mallam Mele Kyari, said during a tour of roads in the North-central and South-west, along with the Chief Executive of the Federal Inland Revenue Service (FIRS), Muhammad Nami and top officials of the Ministry of Works and Housing, that in the coming months, Nigerian road users will experience substantial comfort when commuting.

Also, among the roads visited by Kyari were the one in Niger State where he carried out an assessment of the reconstruction of the Bida-Lambata road in the state, with a length 124.81km and the Lagos-Badagry expressway along the Agbara junction and Nigeria/Benin border.

Under the scheme, the road projects will be funded by NNPC and the equivalent amount deducted by the Federal Inland Revenue Service from the National Oil Company’s tax obligations. Through the scheme, the NNPC will be serving as an enabler for building the Nigerian economy and it is collaborating with key stakeholders such as the Ministry of Works and the FIRS on the execution of the initiative.

The company said this is in response to the plight faced by petroleum products marketers in transportation which affects nationwide distribution.

Interestingly, NNPC Ltd is involved in operations across the oil and gas value chain from exploration and production of hydrocarbon and processing of natural gas to nationwide distribution of petroleum products such as petrol, diesel, and kerosene.

The NNPC’s assets base and operations span across different regions of the country and the oil and gas industry has remained one of the biggest and most important economic drivers through foreign and domestic investments.

Kyari further stated that the NNPC was taking cognisance of the importance of road infrastructure to the development of the Nigerian economy, explaining that it is the reason it is investing massively in road infrastructure.

He termed the programme a game changer in the federal government’s quest to scale up infrastructure projects in the country, noting that the NNPC will continue to support any effort of the government aimed at growing the Nigerian economy.

The GCEO expressed satisfaction with the progress of work so far done in the project sites visited, adding that the NNPC had done its part in releasing all the funds needed for their execution.

He said, “We are very happy about the state of this road development. We are very happy with this intervention across the country not just in this place. We are doing 1,800km across the country. We are taking another set of over N1 trillion of investments in road infrastructure in the country. We believe that this tax credit system that Mr President has put in place is the game changer for our country.

”We believe that in the next 24 months, there will be a massive change to the entire road network in this country and this is why NNPC is your company and working for all of us.

“We think that it is the best way to intervene and bring up our infrastructure. We are adding another set of cash, we have not reached the final numbers, but I know it is over N1 trillion.’’

Kyari stated that the quality of work was top-notch, revealing that the consultants deployed during Buhari’s stint at the Petroleum Trust Fund (PTF), were handling the jobs. “We are using the same consultants in partnership with the Federal Ministry of Works and the FIRS to make sure that this works for all of us and we can see from the quality of work. This is the best framework for delivering infrastructure in the country. We are funding partners. We are development partners and enablers. So, whatsoever the FIRS and the ministry of works approve for us, we will consider from our cash flow and fund them,” he assured.

The Director, Roads, Ministry of Works, Folorunso Esan, said through the intervention, the NNPC has been able to improve the pace of the project from 10 per cent to about 40 per cent within a very short period.

Headlines

NIMASA set to open Lokoja office to harness waterways resources

The Eyewitness Reporter

The Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Bashir Jamoh, has disclosed that the Agency is set to reopen the Lokoja office, as part of efforts towards harnessing the Blue Economy, enhancing collaboration, while also promoting Research and Development.

The DG, who made this known when he played host to the Executive Secretary of the Kaduna State Emergency Management Agency (KADSEMA), Mal. Usman Hayatu Mazadu at the head office of the Agency in Lagos, noted that investment in research would play a major role in ensuring the harnessing of Nigeria’s maritime potentials.

“The key cardinal principle of opening the NIMASA Lokoja office is to improve on Research and Development.

“Our goal is to establish the nexus in maximizing the use of available resources in the nation’s inland waterways and the deep blue waters within 28 states, spanning over 4000 kilometers of inland waters and over 200 nautical miles of ocean resources; with the coming of the Ministry of Marine and Blue Economy.

He said, “Now, the Blue Economy has come to stay and very soon you will see the impact of what we have; in terms of the gains and benefits to grow our Gross Domestic Product while improving the well-being of our own Economy”.

Earlier in his remarks, Mallam Usman of KADSEMA lauded the Agency for the feat achieved so far, which cuts across the entire Nigeria.

While seeking cooperation with the Agency in possible areas, he expressed the readiness of KADSEMA to support the Agency in areas that may be deemed possible.

Freight Monitor

Prince Nwokeabia rallies support for Comptroller Ukpanah, CAC Enugu/Anambra/Ebonyi\command, as she assumes office

Prince Nwokeabia,

The Eyewitness Reporter

The Chairman of the Enugu chapter of the Association of Nigerian Licensed Customs Agents (ANLCA), Prince Alex Nwokeabia, has rallied the support of his members and other stakeholders in the chapter for the new Customs Area Controller of Enugu/Anambra/Ebonyi Area Command, Compt. Comfort Senas Ukpanah as she assumed duty in the command.

In his congratulatory message to the new controller, Prince Nwokeabia, while welcoming Comptroller Ukpanah to the Enugu Customs Command, expressed confidence in the capacity of the new CAC to further drive the command to new heights of success.

The freight forwarder, who described the new CAC as a thoroughbred Customs officer who rose through the rank, believed that Comptroller Ukpanah would consolidate and surpass the achievements so far recorded in the command.

Prince Nwokeabia, while congratulating the new CAC on her deployment to the command, assured her of the readiness of the members of the Enugu ANLCA to support and work for the success of her tenure.

”I, Prince Alex Nwokeabia, on behalf of all the members of the Association of Nigerian Licensed Customs Agents, Enugu Chapter, welcome our new Area Controller, Comptroller Comfort Senas Ukpanah, to her new post and wish her a successful tenure.

“The Enugu ANLCA wishes to assure her of our unflinching support and readiness to work with her and her team to ensure the successful implementation of her mandate” the ANLCA Chieftain declared.

Comptroller Ukpanah assumed office as the new Customs Area Controller of Enugu/Anambra/Ebonyi Area Command on Friday 15th September, 2023.

She took over from Comptroller AM Adegbite who was re-deployed to Edo/Delta Area Command.

Customs

Customs, UN agency collaborate to fight smuggling

The Eyewitness Reporter

The anti-smuggling efforts of the Nigeria Customs Service has received a boost with the support of the United Nations agency,

United Nations Human Settlements Programme, UN—Habitat.

The Customs got the assurance of collaboration from the UN agency on Tuesday, September 19, 2023, when the acting Comptroller General of Customs, Adewale Adeniyi hosted the ambassadors of the global agency led by Dr. Raymond Edoh in his office.

Adeniyi told his guests that the Service, under his watch, will implement every necessary action against saboteurs of Nigeria’s economy to cripple their ‘illegitimate’ business of smuggling.

“On behalf of the entire Management Team of the Nigeria Customs Service, I wish to inform you that we will partner with you in this campaign, and we will grant you all forms of support you may need to carry out this campaign — and I want to assign one of our amiable DCGs, Abba Kura, to work with you closely.”

He appreciated how they traveled from afar to inform the Nigeria Customs Service of their campaign against smuggling, which, according to him, the Nigeria Customs Service has already started yielding positive results in suppressing the menace of smuggling.

The CGC also welcomed Dr Raymond’s offer to engage officers and men of the Service in capacity—building to enhance their understanding of digital literacy skills, adding that the Service has already started embracing technology to advance its work by introducing related courses to officers.

The CGC appreciated the collaborative effort between the Nigeria Customs Service and UN—Habitat and believes that the collaboration signifies a commitment to tackling smuggling and enhancing trade facilitation in the nation, setting the stage for a more prosperous future.

“What we’re trying to do is to raise a modern Customs Service through partnering with stakeholders to achieve our goals because we value partnership, and I am happy that you extended your hands of collaboration to work with us.”

He also appreciated their pledge to train officers and men of the Service in digital literacy skills, assuring that the Service will continue to prioritize proficiency in the fight against smuggling through a technological approach.

He underscored the importance of digital skills, promising that the relevant Service department will enhance trade facilitation.

On his part, the Director of UN—Habitat, Dr. Raymond Edoh, appreciated President Bola Ahmed Tinubu for reposing the responsibility of heading the Nigeria Customs Service on the Acting Comptroller-General, describing him as “a competent Customs officer who knows the terrain and masters the job.”

According to him, they decided to visit the Ag. CGC at the Customs Headquarters to express their interest in partnering with the Service.

He appreciated the Service for being a “gatekeeper of the country” that protects citizens against border threats, stressing that his organization will collaborate with NCS to mitigate the smuggling of illicit goods and train officers and men of Customs on digital literacy skills and certification.

UN-Habitat is the United Nations entity responsible for developing urban policies and translating them into action to create sustainable cities and promote viable urban development and adequate shelter for all.