Edo to attract infrastructure investment via tax credit scheme

Edo State governor, Godwin Obaseki has signed an executive order to deepen investment in infrastructure and the social sector in the state through the Infrastructure Development and Social Investment Tax Credit Scheme Order 2021.

The executive order, which will pave the way for private sector players to invest in infrastructure in return for tax credits, is intended to revolutionise the government’s approach to financing infrastructure to engender sustainable development.

In a statement, secretary to the state government, Osarodion Ogie, said the tax credit scheme is a public-private partnership (PPP) intervention that seeks to “enable the Edo State government to leverage on private sector funding for the construction or refurbishment of eligible infrastructure and social projects in the State.”

Ogie said: “It also focuses on the development of eligible infrastructure projects in an efficient and effective manner that creates value for money through private financing.

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“It guarantees participants in the scheme timely and full recovery of funds provided for the construction or refurbishment of eligible infrastructure and social projects in the manner prescribed in this executive order.”

He explained that the scheme is to run for a five-year period and participants are “entitled to utilise the project cost incurred in the construction or refurbishment of eligible projects as a credit against Personal Income Taxes and Withholding Taxes due to Edo State government.”

A committee is to be set up to administer the scheme, which is to be known as “Infrastructure Development and Social Investment Tax Credit Scheme Management Committee” and it will be chaired by the commissioner for finance while the executive chairman, Edo State Internal Revenue Service will serve as the deputy chairman, with at least one representative of the private sector as a member.

The permanent secretary of the ministry of finance is to serve as the secretary to the committee.