The Federal Executive Council has recently approved a significant contract worth N158 billion for the construction of service lanes connecting the Lekki Deep Sea Port to the Shagamu-Benin Expressway via Epe.
This major infrastructure project, which will be undertaken by Dangote Industries, is part of the Federal Government’s Road Infrastructure Development Fund and Refurbishment Investment Tax Credit Scheme.
The approval was one of the key resolutions made during an FEC meeting led by President Bola Tinubu in Abuja. A statement from Bayo Onanuga, Special Adviser to the President on Information and Strategy, confirmed the decision and outlined the benefits expected from the project.
The planned service lanes are anticipated to alleviate traffic congestion in Lagos, a city already burdened by heavy traffic and industrial activity, particularly in the Lekki Free Trade Zone. By improving the flow of goods and enhancing connectivity to other regions, this project aims to ease pressure on Lagos’s internal road networks and facilitate smoother transit for both commercial and private vehicles.
Dangote Industries, a leading player in Nigeria’s private sector, stands to gain from this project through the tax benefits offered under the Federal Government’s scheme. Companies participating in public infrastructure initiatives can receive tax credits in return for funding and completing such projects, effectively allowing them to offset costs through future tax deductions. As of August 2024, Dangote Group is already engaged in funding nine major road projects across the country, demonstrating its commitment to national development.
Among these projects are the 35 km Apapa-Oworonshoki Expressway in Lagos, a 38 km section of the Abuja-Kaduna-Kano Road Dualization, and several roads in Borno State. With the approval of the new service lanes, Dangote Industries will increase its involvement to ten projects, solidifying its position as the top private sector contributor to Nigeria’s road infrastructure under this scheme.
In comparison, other companies like BUA Group are managing seven road projects, Mainstream Energy Solutions is overseeing three, and MTN has one project. This competitive landscape highlights the crucial role private sector engagement plays in enhancing Nigeria’s infrastructure and fostering economic growth.
The construction of these service lanes not only reflects a proactive approach to improving transportation infrastructure but also underscores the government’s strategy to attract and leverage private sector investment in public works. As the project progresses, it is expected to significantly contribute to the efficiency of logistics and transportation, thereby supporting the broader economic goals of the nation.
