The government chose Nigeria’s top cement company, BUA Cement Plc, led by Africa’s sixth richest man, Abdul Samad Rabiu, to fund the Lokoja-Benin road reconstruction under a tax credit system.

The Federal Executive Council (FEC) approved the dualization of the Okpella segment of the road at a cost of N120 billion ($78.9 million), with BUA Cement financing the project. The finance will be provided through Nigeria’s tax credit scheme, which is designed to encourage private sector engagement in infrastructure development.

The announcement came after a two-day FEC meeting. Bayo Onanuga, the President’s Special Adviser on Information and Strategy, stated that the council accepted contracts for the Okpella portion, the Lokoja-Benin dualized Auchi portion-Uromi Link Road, and the Lokoja-Benin Ekpoma Section.

To emphasize the urgency, Onanuga cited a recent fuel tanker accident on the deteriorating road. “BUA Cement will finance the reconstruction at a cost of N120 billion ($78.9 million) under the tax credit scheme,” he posted to social media.

This effort is under the Road Infrastructure Development and Refurbishment Tax Credit Scheme, which was launched in 2019. The method seeks to reduce the government’s financial burden while encouraging public-private partnerships.

BUA Cement, a subsidiary of Rabiu’s BUA Group, is Nigeria’s second-largest cement manufacturer. Rabiu owns a 96 percent share. BUA Cement is a key player in the BUA Group, a renowned African manufacturing and industrial conglomerate with an installed capacity of 11 million tons per year.

BUA Cement’s first-quarter 2024 results revealed outstanding sales growth of 51.51 percent to N161.13 billion ($118.85 million) year-on-year. However, the cement company’s profit declined significantly due to rising expenses and currency devaluation.