The Federal Government has said more investors have indicated interests in spending billions on road projects across the country under the tax policy initiative.
It said a business conglomerate, the BUA Group, has indicated interest to construct public roads through the federal government tax credit initiative for road infrastructure development.
This is coming hours after the Federal Executive Council (FEC) on Wednesday approved N309.9 billion for road contracts which will be handled by the Dangote Group.
Dangote will build five road projects totalling 274.9 kilometers under the Road Infrastructure Tax Credit Policy, making it the largest single award of concrete roads undertaken by the Federal Government.
The chairman of BUA Group, Abdul Samad Rabiu, during a meeting at the ministry’s headquarters in Abuja on Wednesday, indicated his conglomerate’s interest to key into the programme and build public roads.
The Kano-born billionaire met with the Minister of Works and Housing, Babatunde Fashola; and Minister of State for Works and Housing, Engr Abubakar D. Aliyu.
He commended the federal government for the initiative, saying his company will fully participate by investing into some selected road projects across the country.
Fashola praised the BUA group chairman for coming forward, saying the initiative was designed by the government to grant tax relief to individuals and corporate organisations who invest in Nigeria’s road infrastructure.
He said the idea was to attract the private sector to road maintenance, outside the budgetary circle because of paucity of funds. It will also fast tract the development of the roads, he said.
In 2019, President Muhammadu Buhari signed the Executive Order 7 (Companies Income Tax Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme) to attract PPP financing for road construction across Nigeria.
This is in addition to the establishment of the Presidential Infrastructure Development Fund (PIDF) to fast-track the completion of critical infrastructure projects in 2018.
The initiative is being implemented under a tax recovery order that exists under the Companies’ Income Tax Act.
The minister said that what it really meant technically was that the government was spending the taxes it should collect in advance to quickly respond to places where there were pains.
“Some of these companies or most of them make profits and they should pay tax at the end of the day.
He enjoined all corporations to accept this initiative, which will among others, link their businesses to quality infrastructure.
“The policy is not designed for one company or individual. Everyone with the wherewithal are welcome. The priority of the government is to fix the road infrastructure for the benefit of the all,” he said.
“Government is saying that if you invest in infrastructure that the public will use, it will give you some tax relief as well as commend and welcome the initiative.
“So, we welcome individuals and corporations that have money to intervene on certain roads and then get tax relief in return,” Fashola said.
