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The Nigerian Inland Revenue Service (FIRS) has issued Dangote Cement Plc, tax credit certificates valued at N22.321 billion.
The tax credit certificates were for the construction of Apapa-Oworonshoki-Ojota road in Lagos and the Lokoja-Obajana-Kabba road connecting Kogi and Kwara States.
The two federal roads are being constructed and funded by Dangote Cement Plc. The credit certificates issued to Dangote is a waiver to cover the tax that Dangote Cement would have paid.
The FIRS’ Executive Chairman, Mr. Muhammad Nami, gave the clarification in Abuja while presenting the two tax credit certificates to Dangote Cement on Wednesday .
The tax credit certificates for the Apapa-Oworoshoki-Ojota expressway is valued at N21.6 billion while that of Lokoja-Obajana-Kabba expressway is valued at N721 million.
This is the second tax credit certificate the Federal Inland Revenue Service (FIRS) will issue to Dangote for the Lokoja-Obajana-Kabba road construction.
A N9.5 billion tax credit certificate had earlier in 2019 been awarded to Dangote Cement for the Lokoja-Obajana-Kabba road.
Nami said: “Government came to that reasoning that if we could encourage local investors to do what is needed and of course under an agreement with some due monitoring and approvals, then some monies they would have accrued back to government as taxes, they would have paid.
“It will be in the government’s interest that other investors, business entrepreneurs, companies take advantage of this key initiative such that Nigeria can develop faster than the government would have done alone.
“We are hoping that this arrangement will be taken to another level, we also believe that this will spur other business players out there to come and take advantage of it.”
Nami was represented by the Coordinating Director, Tax Operations Group, FIRS, Mr. Femi Oluwaniyi.
Issuing the tax credit certificates followed the signing of Executive Order 07 of 2019 by President Muhammadu Buhari, which is on road infrastructure tax credit.
The order encourages companies to develop infrastructure around their operational area as long as it will enhance their delivery and their businesses.
The Group Executive Director Government and Stakeholders Relations, Ahmed Mansur, received the tax credit certificates on behalf of Dangote Cement Plc.
Mansur said “ the responsibility of providing public services and public facilities like roads and electricity and so on, is that of the state but in today’s modern state it is not possible to encompass every service that the public requires even if the states have the funds.
“To do it at the same time within the time that the public requires is often not possible, and I think it is this kind of thing that has generated the need for the state to engage private actors to take part in the process.”