The Federal Government said it may resort to tax recovery funding scheme for the construction of some of the major road in the country.
The Minister of Power, Works, and Housing, Mr. Babatunde Fashola made this known during a progress report meeting with contractors handling major road projects for the government.
The new arrangement became imperative as a result of revenue shortfalls which have made funding projects challenging for the government.
Fashola said that the government is exploring innovative ways of funding infrastructure projects and as such would offer companies operating within tax reliefs to allow them undertake key road projects in the country.
He explained that companies with the capacity and willingness to reconstruct existing or build new roads in the country would be encouraged by the government to go ahead, and subsequently claim tax relief as recompense for their investments.
He said, “We welcome other likeminded individuals and companies who have that kind of money to intervene in certain roads, and claim tax relief back.
“What it really means technically is that government is spending in advance the taxes that it should collect to quickly respond to places where there is pain because some of these companies, if they make profit should pay tax at the end but the government is saying if they spend some of the tax on public infrastructure they will get some relief. We commend and welcome this initiative.
“That is the long term solution to the lock down in Apapa. There will be some discomfort, but as we begin work on that area, people should expect some relief.”