…advises Governor Emmanuel to leverage on Road Infrastructure Tax Credit Scheme as solution
Written by: Ubong Sampson – Uyo
A former Deputy Speaker of Akwa Ibom state, Hon. Uwem Udoma has observed with regret that Akwa Ibom leaders have failed the people by not rising above board, beyond party sentiments to get lasting solution to the dilapidated Calabar-Itu highway – the only road linking Cross River and Akwa Ibom states.
Udoma made the observation while speaking to newsmen in Uyo on the poor state of the road, as well as the Ikot Ekpene, Aba Highway, admitting that it is shameful that both the PDP and APC administrations have failed to fix the roads in the 16 and 6 years respectively that both parties reigned in power. He further admitted that it is embarrassing to him even as an APC member that his party is unable to fix this problem and since he does not have any position of authority, he can only advocate for the state which he said does the highest in oil production and contributes up to 30% of the nation’s income.
Advising the Governor on the need to act fast, the Abak born member of the Akwa Ibom 4th House of Assembly suggested that the governor should lead a delegation of his entire Exco, members of AKHA, members of National Assembly from Akwa Ibom, Council of Chiefs, Senior Citizens and Elder Statesmen on a courtesy call on President Muhammadu Buhari for the purpose of exploring ways of seeking alternative means of funding the reconstruction of Calabar Itu highway and Ikot Ekpene Aba Highway, saying the move becomes imperative as the poor state of the road affects Akwa Ibom people across all political divides.
“The governor in a time like this, should think creatively and explore the concept of the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme like the federal government, other states and private companies are doing towards solving the infrastructural challenges”.
“The governor can explore the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme by collaborating with AKIPOC, Mobil, CCECE and other major companies operating in the state towards fixing the road for the benefit of Akwa Ibom people”, he added.
According to the former Deputy Speaker, Akwa Ibom people are the major users of the said road, as materials and all concrete components of all major construction jobs by government, construction companies, private individuals, schools, estates etc come from both Unicem cement and the quarry in Akampa in Cross River State, adding that in this era of insecurity and unrest especially in the South East geopolitical zone, the road remains the safest land route to Abuja from Akwa Ibom through Ikom.
Udoma reminded the Governor that the issue of Calabar Itu highway is more than a party affair hence the need for him to rise above politics and facilitate the mobilisation of PDP, APC and every relevant stakeholder towards achieving results in the two years left, stating that Ikot Ekpene to Odukpani is about 118 kilometers which, if reconstructed, will benefit business men and women, commuters and help stimulate economic growth and development in the state.
He noted that though Akwa Ibom can boast of an airport through which people can fly in and out at anytime, flights cannot carry cement and stones needed for construction purposes, a job he says can only be ferried by heavy duty vehicles plying the road.
The former lawmaker noted that despite the approved N54 billion for a 20km portion of the 118km long road, only N3 billion was released which was consumed by just compensation payment alone. He added that waiting on the federal government in the present economic situation will be fruitless, as government will likely complain of resources, reason the governor and every stakeholder in Akwa Ibom must join hands to make the dream of having a reconstructed Calabar Itu and Ikot Ekpene Aba Highways fixed as the severity of the issue and the socioeconomic impact of the roads on the state’s economy is not something to be left in the list of expectations from the federal government.
It would be recalled that President Muhammadu Buhari on 25 January 2019, signed the Executive Order No. 007 on Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme.
The Scheme is a public-private partnership (PPP) intervention that enables the Nigerian Government to leverage private sector capital and efficiency for the construction, repair, and maintenance of critical road infrastructure in key economic areas in Nigeria.
It is open to any Nigerian company (other than sole corporations), acting on its own or in collaboration with other Nigerian companies, and institutional investors wishing to construct or repair any road identified and designated by the government as an “eligible road” under the Scheme.
Participants are entitled to utilize the total cost (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. As a further incentive, Participants will be granted a single non-taxable uplift. The Uplift will be a percentage of the Project Cost, and the percentage to be applied is Monetary Policy Rate plus 2% on Project Cost. The uplift will be included in the total tax credit available to each participant.
The objective of the scheme is to enable the Government to leverage private sector funding for the construction or repair of eligible road infrastructure projects in Nigeria; Increase the focus on the development of eligible road infrastructure projects in a manner that will generate value for money through the PPP intervention and Guarantee Participants timely and full recovery of funds provided for the construction or repair of eligible road infrastructure projects in the manner prescribed in the Executive Order.
