Why Dangote is constructing N1.83 trillion highway in central Nigeria

• Dangote Group has begun a ₦1.83 trillion upgrade of Niger State’s 401-kilometre Lambata-Bida-Mokwa-Makera-Kontagora highway
• The company will recover eligible construction costs through tax credits under the Federal Government’s infrastructure investment scheme
• The concrete road is expected to improve safety, trade and travel, with construction starting at four locations

Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.

The Dangote Group has commenced construction of a ₦1.83 trillion highway in Niger State under a Federal Government arrangement that allows private companies to finance public infrastructure and recover their investments through tax credits.

The 401-kilometre Lambata-Bida-Mokwa-Makera-Kontagora highway is expected to improve transportation, reduce travel difficulties and strengthen economic activities 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.

Minister of Works David Umahi confirmed that the Dangote Group would finance the project through the Federal Government's Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme.

Why Dangote is building the ₦1.83 trillion road

The Federal Executive Council approved the project on June 29, 2026, awarding approximately 400.9 kilometres of road construction to the 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.

Umahi explained that President Tinubu approved Dangote's involvement because of the conglomerate's substantial investments along the corridor.

The minister also highlighted the dangerous condition of the existing road, which has been associated with fatal accidents and transportation difficulties.

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

How Dangote will recover the ₦1.83 trillion investment

Unlike conventional government-funded road projects, the arrangement allows Dangote Group to finance construction and recover eligible costs through reductions in future company income tax liabilities.

The initiative operates under Executive Order 7, introduced by former President Muhammadu Buhari in 2019.

Under the scheme, participating companies can generally offset qualifying infrastructure investments against up to 50% of their annual company income tax liabilities.

However, the recovery limit can reach 100% for projects in designated economically disadvantaged areas.

Unused tax credits can also be carried forward, allowing companies to recover approved investments over time.

The arrangement means the Federal Government can deliver infrastructure without immediately financing the entire construction cost through conventional budgetary allocations.

Dangote's road investments exceed ₦5 trillion

Speaking at the inauguration, Mansur Ahmed, special adviser to the president of Dangote Group, disclosed that the conglomerate's road infrastructure investments across Nigeria now exceed ₦5 trillion.

He said the Niger State highway would generate employment, improve commercial activities and connect communities along the corridor.

Ahmed also highlighted Dangote's ongoing rice mill development in Wushishi, Niger State, as evidence of the group's expanding investments.

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

Concrete highway to improve travel and trade

The new highway will feature continuously reinforced concrete pavement instead of conventional asphalt.

According to Umahi, the construction method offers greater durability and resistance to weather-related deterioration.

Work will commence simultaneously at four locations to accelerate delivery, although officials have not announced a completion deadline.

House of Representatives Committee on Works Chairman Akin Alabi described the highway as an important economic corridor connecting northern and southern Nigeria.

He pledged legislative oversight to ensure accountability and successful execution.

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

For motorists, traders and communities along the corridor, the project's ultimate value will depend on timely completion and whether it delivers safer journeys, lower transportation costs and improved access to markets.

Dangote begins construction of another refinery

Legit.ng earlier reported that Dangote Group has broken ground on a $17 billion oil refinery in Kenya before the end of September, with the facility expected to be completed within three years of construction starting.

Aliko Dangote, president of Dangote Industries Limited and Africa's richest man, made the announcement on Monday, September 14, 2026, during the opening of the Dangote Petroleum Refinery and Petrochemicals FZE initial public offering in Lagos.

Source: Legit.ng