Tax credit scheme to link Lekki Deep Sea Port/Epe Expressway with Benin/Shagamu Expressway

“The Federal Executive Council (FEC) Has Approved a One Hundred and Fifty-Eight Billion Naira (N158,000,000,000) Contract for the Construction of Service Lanes Connecting the Lekki Deep Sea Port Through Epe to the Shagamu-Benin Expressway”

The above headline is one of the important resolutions of the FEC meeting which held on Monday the 23^rd say of September 2024.

The project is to be handled by Dangote Industries under the Federal Government Road Infrastructure Development Fund and Refurbishment Investment Tax Credit Scheme commonly described as the “Investment Tax Credit Scheme”.

For those who are not familiar with the “investment tax credit scheme”, the scheme is a unique and customized model of Public-Private Partnership Arrangement in Nigeria, whereby the public sector and the private sector, collaborate to deliver critical road infrastructure through the scheme.

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Executive Order No 007 of 2019 provided a model of Public-Private Partnership Arrangement in Nigeria, as contained in Article 1(1) and Article 1(2)(a) of the Executive Order:

1 (1) There is established a scheme to be known as “the road infrastructure development and refurbishment investment tax credit scheme” (hereinafter referred to as The Scheme)

1 (2) (a) The Scheme shall be a Public-Private Partnership intervention that shall-

 enable the Federal Government of Nigeria to leverage on private sector funding for the construction or refurbishment of eligible road infrastructure projects in Nigeria.

It is important to note that this “unique” model of Public-Private Partnership Arrangement is turning out to be a “huge” success in the delivery of critical road infrastructure in Nigeria. So far, since 2019, the here under road projects have come under this unique scheme:

1. Apapa-Oworoshoki expressway
2. Bonny-Bodo highway/bridge construction in Cross-Rivers State
3. Bama-Banki road in Borno State
4. Obelle-Ilarro-Papalanto-Shagamu road dualization in Ogun State
5. Afikpo-Okigwe-Road in South East Nigeria
6. Abuja-Kaduna-Kano road dualisation
7. Lokoja-Benin Highway
8. Kano=Konogollam road
9. Bode Sadu-Kaiama road
10. Lafiaji-Bacita road
11. Okita-Kenu road
12. Enugu-Onitsha road

All these projects amongst others are being executed by Dangote industries, NLNG, BUA and MTN as PPP arrangements.

All these companies “utilize the project costs incurred in the construction of or refurbishment of these roads as a “credit against the company’s income tax” payable to the Federal Government.

It is a thing of joy that the Dangote industries “quickly” decided to take this project as a “needed” infrastructural support for its refinery and petrochemical industry located in the export free zone of Ibeju Lekki.

It is hoped that many more companies will take advantage of this tax credit scheme to deliver needed road infrastructure to the teaming populace of Nigerians.

This writer salutes the patriotic spirit of Dangote industries to embark on this project, knowing very well that the company has about six to seven other road infrastructure projects under this scheme in its hands.

ADEBISI ADEKUNLE SOGUNLE, ESQ.
AUTHOR OF BESTSELLING BOOK: PRACTICAL GUIDE TO PRIVATE TO PUBLIC-PRIVATE PARTNERSHIP ARRANGEMENTS IN NIGERIA.