Nigerian government grants Dangote 10-year tax incentive

Nigerian government has granted a 10-year tax

incentive to Dangote Group.

The incentive is for the construction and

rehabilitation of roads.

Minister of Power, Works and Housing,

Babatunde Fashola, made the disclosure in

Lagos at the weekend.

He confirmed thatconstruction of the Apapa to

Oworonshoki end of the Lagos-Ibadan

expressway has been handed over to Dangote.

Fashola disclosed that government approved a

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.

“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.