The potential of exploring taxation to reduce the infrastructural deficit currently experienced in the country has been brought to bear. Just like with the construction of Apapa Wharf Road, Oworonsoki to Apapa through Oshodi Road and the Obajana-Kabba Road; the Dangote Cement PLC is set to receive another Tax Credit Certificate.
The Tax Credit this time around is worth ₦309.9 billion for the construction of five major federal roads with a combined total length of 274.9 kilometres. This agreement which is in line with the Federal Government’s Road Infrastructure Tax Credit Policy will include the construction of Bama to Banki in Borno State for ₦51.02 billion running into 49.15km; Dikwa to Gamboru-Ngala, 49.58km, in Borno State for ₦55.5 billion; and the Nnamdi Azikiwe Road, popularly known as Western Bypass in Kaduna, 21.48km, from Command Junction to Kawu, in the sum of ₦37.56 billion.
Others are the deep seaport access road sections 1 and 3 in Lagos State, through Epe to Shagamu Expressway, 54.24 km, that links Lagos and Ogun states, for ₦85.84 billion; the Obele/Ilaro/Papalanto to Shagamu Road, 100km, in Ogun State, in the sum of ₦79.99 billion.
Taxmobile.Online from a recent release at the Federal Executive Council meeting in Abuja by the Minister of Works and Housing gathered that the identified roads worth the total of ₦309,917,717,251.35 will be finished in concrete, making it the largest road project to be completed in the country with concrete.
On Dangote’s recent Tax Credits
Apart from the tax credit certificate first issued Dangote worth ₦9.5 billion for the construction of Lokoja-Obajana-Kabba road, the company had received another ₦21.6 billion tax credit certificate for the construction of Apapa-Oworoshoki-Ojota expressway and ₦721 million for the Lokoja-Obajana-Kabba expressway.
The projects are sub-contracted to Hi-Tech and Julius Berger construction companies.
- In line with 2019 Executive Order 07 signed by President Buhari to offer a tax credit to private sectors willing to fund critical infrastructures along with their key areas, the FIRS has announced the issuance of tax credits certificates to Dangote Cement Plc.
- Under the Credit Tax Scheme, participating companies are to recover the cost incurred by them in the construction or refurbishment of eligible roads as a credit against Companies Income Tax (CIT) payable.
- The tax credit initiative has been in existence since the last administration before this government but was not utilized until a revision by the current administration.