Tinubu using Islamic bank loan Sukuk, tax credit to fund federal roads in Abia, Delta, Rivers: FG

The federal controller of works for Abia, Tony Onwubiko, says the federal government under President Bola Tinubu Onwubiko is using funds from budget allocation, the tax credit scheme and the Islamic bank loan called Sukuk to execute road constructions in the state and other areas.
The official disclosed this in an interview in Umuahia on Monday. He said that the current federal government had sustained road maintenance and construction for the good of the Abia people.
“We have two sets of projects: the main contracts and the maintenance works embarked upon by the ministry. The main projects we have now are the rehabilitation and reconstruction of the Enugu-Port Harcourt dual carriageway, section two, being handled by Arab Contractors, the rehabilitation and dualisation of Aba-Ikot Ekpene road in Abia and Akwa Ibom by the CGGC Global Projects, and the rehabilitation of Uturu-Isuikwuato-Akara road by Eighteenth Engineering Company International,” he said.
Mr Onwubikon named other roads handled by the federal government, including the construction of the Umuuchichi-Umueze-GZ Industries road by GZ Industries.
According to him, rehabilitation is also being done on Osisioma-Owerri road, where the NNPC depot is located by Rodo Nigeria Limited.
Mr Onwubiko said the Umuahia-Bende-Ohafia road, section two and Umuahia-Ikwuano-Ikot Ekpene Road by Heartland Nigeria Limited are part of the federal projects in Abia.
He also said that the Bende-Arochukwu road by Heartland Nigeria Limited was one of the federal government’s major ongoing contracts in Abia.
The controller said the federal government’s decision to require states to pay compensation for right-of-way was one of the challenges hindering some jobs in Abia.
He said that although Governor Alex Otti’s administration had shown interest in paying compensations, unlike the past administration, Abia has yet to acquire the right of way for any federal government construction.
The controller said the federal government used three funding patterns to provide for its projects. Mr Onwubiko said the funding patterns include budget allocation, the tax credit scheme and the Islamic bank loan called Sukuk.
However, he said that budget allocation and Sukuk had yet to pay for projects they funded, while only the tax credit scheme through NNPC provided for its supported projects.
“Abia has three roads under NNPC funding, which is part of the tax credit scheme. They are Osisioma-Owerri Road by Rodo Nigeria Limited, Aba-Ikot Ekpene Road by CGGC and Umuahia-Ikot Ekpene Road by Heartland Nigeria Limited,” added Mr Onwubiko.
He said that apart from the challenge of the rainy season, when budget allocation and Sukuk provide funds, projects they were funding in Abia would be fast-paced.
(NAN)
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