The Federal Government of Nigeria has awarded the construction of service lanes connecting the Lekki Deep Sea Port through Epe to the Shagamu-Benin Expressway to the Dangote Group, one of the leading private sector giants in the country.
The approval for the construction of the project was made at the Federal Executive Council (FEC) meeting presided over by President Bola Tinubu.
Investors King learned that the project which seeks to reduce traffic congestion within Lagos, particularly with the concentration of industries in the Lekki Free Trade Zone, is worth N158 billion.
A statement issued by Bayo Onanuga, Special Adviser to President Tinubu on Information and Strategy disclosed that the project will be handled by Dangote Industries under the Federal Government’s Road Infrastructure Development Fund and Refurbishment Investment Tax Credit Scheme.
Aside from tackling traffic challenges, the planned service lanes are expected to facilitate hitch-free movement of goods, easing pressure on Lagos’ internal road networks and improving connectivity to other regions.
The Dangote Group benefits from reduced tax liabilities by carrying out public projects that contribute to national development.
Under the Federal Government’s Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme, companies like Dangote Industries can receive tax credits in exchange for funding and completing public infrastructure projects, allowing them to “pay” for the project through future tax deductions.
As of August 2024, nine major road projects across the country were being funded by Dangote Group under this scheme, according to a review by the Ministry of Works.
With the recent FEC approval of the construction of service lanes from the Lekki Deep Sea Port through Epe to the Shagamu-Benin Expressway, the number of road projects being handled by Dangote Group has now risen to ten, making it the top private sector player in the scheme.
... FG Awards N158bn Lekki Port Service Lanes Construction to Dangote ... Investors King.
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