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FG grants Dangote 10-year tax incentive

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Full List Of Forbes’ Africa Billionaires, Dangote Is Poorer By $2bn
 

 

The federal government has approved a 10-year tax incentive to Dangote Group for the construction and rehabilitation of some identified roads.

The information was made public in Lagos at the weekend by the minister of power, works and housing, Babatunde Fashola.

He confirmed that construction of the Apapa to Oworonshoki end of the Lagos-Ibadan expressway will now be handled by the Dangote group.

Fashola disclosed that government also approved an upward review of the five-year limit on tax order enjoyed by the company to 10 years.

“We inherited a tax incentive policy for individuals to benefit from tax remission, to recover investment made in public infrastructure like roads, which other members of the public can utilise,” Fashola said.

He noted that pending applications from Dangote Group were not approved by the previous administration, which the present administration has now approved and that work has commenced on the 42.9 km Obajana – Kabba road in Kogi State.

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“The government reviewed the five-year limit on that tax order to a 10-year period to sustain private investment in road infrastructure, because it is a long-term asset.”

“Government reviewed the order by amending individual investment to include groups of individuals because not all potential investors can individually muster the resources alone but can do so as a group, and recover their pro-rated share.

As for the agreement with Dangote, we are now awaiting the design of the 35 km stretch excluding the portion that has been completed, about 7 km, by the previous administration around Mile 2 area.

“From the design, we will determine the cost and the scope of works which we hope can be executed quickly.

“As this government promised, we will solve the Apapa and Port congestion problem. I can only tell you that the solution is now on the way,” he said.


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