President Muhammadu Buhari has signed Executive Order 007, permitting private firms to aid the federal government on road projects across the country.
The executive order, which is on the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme is designed to develop and deliver Public Private Partnerships with notable investors so as to close the road infrastructure gap in the transportation sector.
Performing the signing ceremony at the presidential villa, Abuja, the President said under the arrangement, 19 eligible road projects are to be undertaken by 6 leading manufacturing and construction firms, located in 11 States, and in each of the six Geo-political zones.
According to him, the move provides another opportunity to demonstrate the commitment of the administration to conceive, design, develop and deliver public private partnerships with notable investors in order to close the road infrastructure gap in the transportation sector.
The President said there have also been revenue shortfalls that have hampered government’s efforts to fully fund critical projects.
He noted that, “at the inception of this administration, we met a significant backlog of local contractors’ debts, which we, as a responsible administration, have undertaken to clear.”
President Buhari said his government met a significant backlog of local contractors’ debts.
The President said the Federal Government remains committed to keeping its promises to deliver qualitative roads and transportation infrastructure.
He noted that government has consistently adopted innovative solutions to complement the annual budgetary spending on infrastructure.
“I approved the establishment of a presidential infrastructure development fund, through which the Nigeria sovereign investment authority is investing in critical roads and power projects nationwide such as the 2nd Niger bridge, Lagos to Ibadan expressway, East-West Road, Abuja – Kano Road, and the Mambila Hydroelectric Power Project.”
President Buhari explained that the country’s reliance on annual budgetary allocations to fund roads development has been disappointing, given that our budget proposals have not always been passed in an expeditious manner by the National Assembly.
