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.
“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.”
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.
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