Connect with us


Dangote gets 30% tax cut to construct Lokoja-Obajana-Ilorin road



Nigeria@56:The lucky bastards

The Federal Executive Council (FEC) on Wednesday approved 30% tax incentives for Africa’s richest man, Aliko Dangote to enable him construct Lokoja-Obajana-Ilorin road.

The Obajana factory of the Dangote Cement is situated along that axis.

The Minister of Power, Works and Housing, Babatunde Fashola gave the hint while addressing State House correspondents at the end of the FEC meeting presided over by President Muhammadu Buhari.

Fashola who was accompanied by the ministers of Information, Lai Mohammed; Labour, Chris Ngige and Justice and Attorney-General of the Federation, Abubakar Malami, said the business proposal seeks to take benefits of tax policies, tax laws for the purpose of using them to drive infrastructure development renewal.

Read also: FG pays oil marketers N48.2bn 2015 outstanding subsidy claims

“So we presented a proposal by one of the subsidiary of Dangote group, a construction company, for the construction of a section of Lokoja-Obajana-Kabba Ilorin, specifically the section between Obajana-Kabba Road using cement as demonstrative of how perhaps we should continue to build going forward in order to reduce maintenance on the road and the company proposing to fund the construction of that section of the road in exchange for some tax remissions,” he said.

Explaining that the policy is not a Dangote only issue, he said that there is an existing tax policy which allows corporate or individual to make investment on the infrastructure of a public nature and later claim remission on its income tax obligation.

“Even as an individual you are entitled to make this claim if the infrastructure goes through this type of process and is approved by government. ‎So it is not a Dangote issue but an economic policy that is to stimulate investment in infrastructure renewal or in any other area that government feels it needs private sector to compliment it’s efforts in such area.

“So the details is about 30 per cent income tax obligation spread over time. It doesn’t mean they won’t pay tax, they will continue to pay their tax obligation but they will get remission for making this investment because ultimately the road doesn’t belong to them but to government and is for the benefits of Nigerians. So its like credit advance to government,” he added.


RipplesNigeria …without borders, without fears

Join the conversation


Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now

Click to comment


  1. Eagle_Zerenjo

    May 20, 2016 at 11:34 am

    Nice one, very nice.

Leave a Reply

Your email address will not be published. Required fields are marked *

4 × three =