BusinessDay

Ogun leverages Globacom’s tax credit to fix Nigeria-Benin Republic road

…Dangote to take over 2 other roads

Governor Dapo Abiodun has said that Globacom Nigeria owned by Ogun State-born billionaire, Mike Adenuga, would deploy its tax credit under the Federal Government Road Infrastructure Tax Credit Scheme to fix Nigeria-Republic of Benin international road, starting from Sango-Ota to the Idi-Iroko international border area.

The proposed road construction would be the second in the series of roads being constructed by private concerns. The first such road was constructed by Dangote Group – a 26km-concrete road that was completed in 2016, starting from Ibese Cement Plant of Dangote Industries Limited, stretching to Itori in Ewekoro local government area of Ogun State.

Speaking at a virtual town hall meeting in preparation of 2022 Ogun State budget in Abeokuta at the weekend, Governor Abiodun noted that some strategic roads had been pencilled down for reconstruction under the Road Infrastructure Tax Credit Scheme as the duo of Globacom Nigeria and Dangote Industries Limited are already taking over some roads for reconstruction.

Read also: FIRS invites foreign tax defaulters to regularise position

He said, “Otunba Michael Adenuga is using his tax (Glo tax credit) to construct road from Sango to Idi-Iroko. Aliko Dangote is using his tax (Dangote Group tax credit) to construct roads from Ilaro to Papalanto and Sagamu Interchange.

“I believe you can see what we are doing at the Interchange, the City Gate. Dangote is also using tax credits to construct road from Ijebu-Ode, Omu-Ijebu to Itokin (in Lagos State). We are promoting tax credits and how we can use tax credits to fix road infrastructure in our state.”

Meanwhile, a close look at the state three-year budget on Medium-Term Expenditure Framework (MTEF) earlier prepared by the state government, coupled with projections of massive roads construction in 2022 and other capital projects, show that the state may vote between 55 percent and 65 percent for capital expenditure in year 2022 fiscal estimates.

Get real time updates directly on you device, subscribe now.