The Dangote Group has commenced the construction of a ₦1.83 trillion highway project in Niger State, marking a major investment in Nigeria’s road infrastructure.
The project involves the reconstruction and dualisation of the 401-kilometre Lambata-Bida-Mokwa-Makera-Kontagora highway, which is expected to improve transportation, enhance road safety and strengthen commercial activities across the North-Central region.
Niger State Governor, Mohammed Umaru Bago, officially flagged off the project in Bida on behalf of President Bola Tinubu. The Minister of Works, David Umahi, confirmed that the Dangote Group would finance the construction under the Federal Government’s Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme.
WHY THE PROJECT IS IMPORTANT
The Federal Executive Council approved the highway project on 29 June 2026 at an estimated cost of ₦1.8325 trillion. The contract was re-awarded after the government terminated an earlier agreement, citing unsatisfactory performance by the previous contractor.
According to Umahi, the decision to involve the Dangote Group was influenced by the company’s significant investments along the highway corridor and the urgent need to address the poor condition of the existing road.
The road has reportedly been associated with serious accidents and transportation difficulties, making its reconstruction important for motorists, traders and communities along the route.
HOW THE TAX CREDIT ARRANGEMENT WORKS
Under the arrangement, the Dangote Group will finance the construction and recover eligible costs through tax credits against its future company income tax liabilities, subject to the applicable scheme’s terms and limits.
The initiative was established under Executive Order 7 of 2019, which was designed to encourage private-sector investment in critical public infrastructure.
The scheme allows participating companies to undertake approved infrastructure projects and recover qualifying costs through tax credits over time. This approach was intended to support infrastructure development without requiring the government to provide the entire project funding upfront through conventional budgetary allocations.
DANGOTE GROUP’S ROAD INVESTMENTS EXCEED ₦5 TRILLION
Mansur Ahmed, Special Adviser to the President of Dangote Group, disclosed at the project launch that the conglomerate’s investments in road infrastructure across Nigeria now exceed ₦5 trillion.
He explained that the highway project would create employment opportunities, improve trade and connect communities along the route.
Ahmed also highlighted the group’s ongoing rice mill development in Wushishi, Niger State, as part of its wider investment activities.
The Dangote Group has previously participated in major road projects, including the Apapa-Oworonshoki-Ojota highway in Lagos State and the Lokoja-Obajana-Kabba road in Kogi State.
CONCRETE ROAD DESIGN EXPECTED TO IMPROVE DURABILITY
The highway will be constructed using continuously reinforced concrete pavement rather than conventional asphalt.
According to the Minister of Works, the construction method is expected to provide greater durability and withstand weather-related deterioration more effectively.
Construction is scheduled to begin at four locations simultaneously to accelerate progress. However, officials have yet to announce a completion date.
Akin Alabi, Chairman of the House of Representatives Committee on Works, described the highway as an important economic corridor linking different parts of the country. He also pledged legislative oversight to promote accountability and ensure the successful execution of the project.
Umahi further disclosed that approximately 5,500 kilometres of federal road projects were underway across the North-Central region, including more than 1,000 kilometres in Niger State.
EXPECTED BENEFITS FOR BUSINESSES AND COMMUNITIES
When completed, the Lambata-Bida-Mokwa-Makera-Kontagora highway is expected to make journeys safer, improve access to markets and support the movement of goods and services.
The project could also reduce transportation difficulties for traders, farmers and other businesses operating along the corridor.
However, its overall impact will depend on the timely completion of construction and the quality of the finished road.
The development adds to the Dangote Group’s growing infrastructure investments, reflecting the role private companies can play in supporting public projects through government-approved financing arrangements.
