FG, Dangote begin first tax credit financed road construction in Abia State
First shot on the Executive Order 07 for the Federal Government recently issued to drive private-public partnership (PPP) in federal roads construction across the country has been fired in Abia State. Destination is the construction of the 16-kilometre Ofeme Community road project located in Umuahia North Local Government Area of the state.
Handled by AG Dangote Construction, a subsidiary of Dangote Group, the highway is expected to be delivered under the Federal Government’s Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme.
Business Hilights recalls that the Order targets mega firms with high yearly tax obligations to take up delivery of costly road reconstruction projects so as to have tax rebate after completion which will be spread over a number of years the total fund will be complete.
The additional merits of the administration of the Tax Credit Refund Scheme in line with Executive Order include enabling private sector to invest in road construction, makes it possible to upgrade access road to industrial and manufacturing clusters and reduce cost of transportation which results in reduction in the cost of food and other services, thereby curbing inflation.
Giving more emphasis on the tax rebate policy at the commencement of the Ofeme road, the Minister of Industry, Trade and Investment, Dr Okechukwu Enelemah, who hails from the state, commended the Federal Government for approving the road project.
According to him, the project would boost economic activities within the community and its environs. The minister stated that the road project had vindicated him for accepting to be minister under the administration of President Muhammadu Buhari, noting that his appointment was greeted with skepticism.
Enelamah averred that “I am very happy that Mr President approved the construction of this road. “When I joined this government, some people were asking me what I stood to gain from it. The Bible says the end of a thing is better than the beginning. It is our time to shine. It is our time to benefit from the government at the centre.”
In his remarks, the Federal Controller of Works, Abia State, Nwankwo Chuwudike, who represented the Minister of Power, Works and Housing, Babatunde Fashola, said the tax rebate scheme will help to fast forward road infrastructure across the federation.
