Babatunde Fashola, minister of power, works and housing, says Aliko Dangote, president of Dangote group, will fix Obajana-Kabba-Ilorin road, in exchange for tax incentives.
Speaking to reporters after the federal executive council (FEC) meeting on Wednesday, Fashola said Dangote will build the federal government road using cement.
“Council approved Memo for Dangote subsidiary to fund and build Obajana-Kabba road using cement, in exchange for tax incentives,” Fashola.
The minister went on to clarify that the arrangement was not only for Dangote, but for as many companies and organisations willing to make pre-approved investment in state-owned infrastructure.
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“This is not a Dangote-only issue. There’s an existing tax policy that states that any individual or investments in publicly-owned infrastructure is entitled to make claims on remission of income tax obligations.
“So this is not a Dangote-targeted policy, it’s an economy-targeted policy. Anyone can take advantage of this provision.
“It is like a credit advance to the government, the road or infrastructure ultimately belongs to the government.”
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One of Dangote’s cement factories is located in Obajana, Kogi state. The Obajana Cement Plant (OCP) is reputed to be one of the single largest cement plants in the world with a combined capacity of 10.25 million metric tonnes per annum (MMTPA).
A fourth line which add 3MMTPA to the existing capacity was expected to bring the total capacity of Obajana to 13.25MMTPA by 2015.
3 comments
Good one!
why is he doing the one near his factory. Why not do a road in the East?
Dangote trucks which carry loads well over the designed strength of our roads are the single most destructive factor in the destruction of our roads. The Obajana- Auchi-Agbor to Warri Road is a death trap because of the overloading and recklessness of Dangote trucks. Rather than sanction him we are giving him tax breaks. What injustice to those of us who suffer on that road continuously. His company drivers are above the law. Is this how Fashola is thinking outside the box. This is absolute surrender to the rich and powerful? Shameful.