Dangote Begins ₦1.83 Trillion, 401km Niger State Highway Under Tax Credit Scheme

Dangote Group has started construction of a ₦1.83 trillion highway in Niger State, financed by the company and recovered through tax credits. The 401-kilometre Lambata-Bida-Mokwa-Makera-Kontagora road is expected to cut travel difficulties and lift economic activity across Nigeria's North Central region.

Niger State Governor Mohammed Umaru Bago flagged off the reconstruction and dualisation project on Tuesday in Bida, representing President Bola Tinubu.

How the deal is structured

Minister of Works David Umahi confirmed that Dangote Group will fund the project through the Federal Government's Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme. The arrangement lets the company recover eligible construction costs by reducing future company income tax liabilities.

The Federal Executive Council approved the project on June 29, 2026, awarding approximately 400.9 kilometres of road construction to Dangote Group at ₦1.8325 trillion. The approval followed the termination of an earlier contract awarded in 2022, which the government said the previous contractor failed to execute satisfactorily.

Under the scheme, which runs on Executive Order 7 introduced by former President Muhammadu Buhari in 2019, companies can generally offset qualifying infrastructure investments against up to 50% of their annual company income tax liabilities. The recovery limit can reach 100% for projects in designated economically disadvantaged areas. Unused tax credits can be carried forward.

The model allows the Federal Government to deliver roads without immediately funding the full construction cost from the budget.

Why Dangote got the job

Umahi said President Tinubu approved Dangote's involvement because of the conglomerate's substantial investments along the corridor. He also flagged the condition of the existing road, which has been linked to fatal accidents and transport difficulties.

"We lost a lot of people there," Umahi said, explaining the urgency of the reconstruction.

Mansur Ahmed, special adviser to the president of Dangote Group, said the group's road infrastructure investments across Nigeria now exceed ₦5 trillion. He said the Niger highway would create jobs, improve commercial activity and connect communities. He also pointed to Dangote's rice mill development in Wushishi, Niger State.

Dangote Cement has previously handled major road projects, including the Apapa-Oworonshoki-Ojota highway in Lagos and the Lokoja-Obajana-Kabba road in Kogi State.

Concrete pavement, four work fronts

The new highway will use continuously reinforced concrete pavement instead of conventional asphalt. Umahi said the method offers greater durability and resistance to weather-related deterioration. Work will start simultaneously at four locations to speed up delivery, though officials have not announced a completion deadline.

Akin Alabi, chairman of the House of Representatives Committee on Works, described the highway as an important economic corridor linking northern and southern Nigeria. He pledged legislative oversight to ensure accountability.

Umahi added that about 5,500 kilometres of federal road projects are underway across the North Central region, including more than 1,000 kilometres in Niger State.

For traders and motorists along the corridor, the value of the project will depend on timely completion and whether it delivers safer journeys, lower transport costs and better access to markets.