Dangote Group Receives N22.321 billion Infrastructure Tax Credit from FIRS
The Federal Inland Revenue Service (FIRS) has issued Dangote Group tax credit certificates valued at N22.321billion.
The tax credit certificates are for the construction of Apapa-Oworonshoki-Ojota road in Lagos and the Lokoja-Obajana-Kabba road straddling Kogi and Kwara states, according to a statement that was issued by the agency yesterday.
While Julius Berger is handling the construction of these two federal roads, Dangote Cement Plc is providing the funding.
To compensate Dangote Cement, the federal government has issued the company these certificates to cover for the tax that Dangote Cement would have paid.
The tax credit certificates for the Apapa – Oworoshoki – Ojota expressway is valued at N21.6 billion while the tax credit certificate for the Lokoja-Obajana-Kabba expressway is valued at N721 million.
This is the second tax credit certificate the Federal Inland Revenue Service (FIRS) will be issuing to Dangote for the Lokoja-Obajana-Kabba road construction. N9.5billion tax credit certificate had earlier in 2019 been awarded to Dangote Cement Plc for the Lokoja-Obajana-Kabba road.
The executive chairman of the FIRS, Muhammad Nami, represented by coordinating director, tax operations group, Mr. Femi Oluwaniyi, while giving clarification in Abuja said: “government came to that reasoning that if we could encourage local investors to do the needful and of course under an agreement with some due monitoring and approvals then some of the monies they would have accrued back to government as taxes they would have paid.”
Oluwaniyi added that, “it will be in the interest of the government that other investors, business entrepreneurs, companies take advantage of this key initiative such that Nigeria can develop faster than government would have done alone”.
Issuing tax credit certificates was made possible by executive Order 07 of 2019 signed by President Muhammadu Buhari on road infrastructure tax credit.
Responding on behalf of Dangote Cement Plc, group executive director, government and stakeholders relations, Engr. Ahmed Mansur said: “it is true that the responsibility of providing public services and public facilities like roads and electricity and so on is that of the state but in todays modern state it is not possible to encompass every service that the public requires even if the states have the funds.”
“While it remains the responsibility of state, the ability of private sectors to also contribute their quota in terms of capacity to execute becomes a huge advantage and it is because of it that when the opportunity was offered by his excellency Mr President through this EO 07, we jumped at the opportunity,” he pointed out.