In Nigeria, manufacturers are overhauling asphalt roads for concrete

Industry, Trade and Investment

By Franklin Alli


LOCAL manufacturers in Nigeria have been playing active roles in the construction and reconstruction of Nigerian roads from asphalt to concrete, under the federal government’s Road Infrastructure Tax Credit Scheme. 


An investigation by Industrial Digest shows that the Dangote Group, and the Flour Mills of Nigeria Plc are leading the pack.

Also, other private sector players – MTN Nigeria, and Transcorp, are in the race of giving the country durable roads.


The Dangote Group for instance, through its cement arm, recently received tax credit certificates valued at N22.32 billion for the construction of roads.


The tax credit certificates are for the construction of Apapa-Oworonshoki-Ojota road in Lagos and the Lokoja-Obajana-Kabba road connecting Kogi and Kwara states.


Recall that the Federal Executive Council, FEC, recently approved the award of a contract to Dangote Industries for the construction of five roads totaling 274.9 kilometers at the local cost of N309, 917,717,251.35. The contract sum will be advanced by the company as a tax credit.


The Minister of Works and Housing, Babatunde Fashola, said that the road contract, which was the second approved for the ministry at the meeting, will be executed on concrete and will be the larger of such project in the country.


“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, totaling 274.9 kilometers 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 totaling 274.9 kilometers will cost N309,917,717, 251.35 to be advanced by the Dangote Industries as a tax credit.

The roads, specifically, are Bama to Banki in Borno State for N51.016 billion with a 49.153 kilometers; Dikwa to Gamboru-Ngala, 49.577 kilometers in Borno State for N55.504 billion; the Nnamdi Azikiwe Road, popularly known as a Western Bypass in Kaduna, 21.477 kilometers, from Command Junction to Kawu, in the sum of N37.560 billion and the deep seaport access road sections 1 and 3 in Lagos State, through Epe to Shagamu Expressway, 54.24 kilometers, that links Lagos and Ogun states, in the sum of N85.838 billion; the Obele/Ilaro/Papalanto to Shagamu Road, 100 kilometers in Ogun State, in the sum of N79.996 billion.”

The group is also in partnership with the Lagos State Government to reconstruct the Lekki-Epe Expressway into the Free Trade Zone area, covering several kilometers. The project is expected to commence in the first quarter of 2023.

The Flour Mills Group has also expressed interest to use their tax credit scheme to rebuild the Agbara – Otto highway, in Lagos State. 


Further, MTN is to construct Enugu – Onitsha road (110km) while Trancorp is to construct Oyinbo-Izuoma -Mirinwayi -Oklama-Afam Road.


On January 25, 2019, President Muhammadu Buhari signed executive order 7 on Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme into law.


The road infrastructure tax credit scheme (RITC) grants income tax credit to companies and individuals that provide funding for the refurbishment and rehabilitation of roads.

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