The Federal Executive Council today approved tax incentives for Dangote Group which is owned by Africa's richest man, Aliko Dangote.

The new move was announced by Babatunde Fashola after the meeting.

See tweet from Aso rock official handle announcing the incentive:

[img]http://www.nigerianbulletin.com/attachments/dango-png.81576/[/img]

The Federal Executive Council (FEC) on Wednesday approved the proposal for business mogul, Aliko Dangote, to construct Lokoja-Obajana-Ilorin Road.
Dangote Cement’s Obajana factory is located along that axis.
In return, Dangote will hold back 30 percent of his company’s income tax for some years.
‎The Minister of Power, Works and Housing, Babatunde Fashola, disclosed this to State House correspondents at the end of FEC meeting presided over by President Muhammadu Buhari.
He was accompanied by the Ministers of Information, Lai Mohammed; Labour, Chris Ngige and Justice and Attorney-General of the Federation, Abubakar Malami.
He said: “We presented a memo to council for consideration. The memo seeks to take benefits of the existing policy and regulation. It seeks to take benefits of tax policies, tax laws for the purpose of using them to drive infrastructural development renewal.
“So we presented a proposal by one of the subsidiary of Dangote group, a construction company, for the construction of a section of Lokoja-Obajana-Kabba-Ilorin, specifically the section between Obajana-Kabba Road using cement as demonstrative of how perhaps we should continue to build going forward in order to reduce maintenance on the road and the company proposing to fund the construction of that section of the road in exchange for some tax remissions.
“Companies are ordinarily suppose to pay income tax‎. There are existing policies in our laws which enable government to consider and give taxes incentives.
“So Council consider and approved the proposal for Dangote construction company to build that section of the road because the tonnage of cement being produced from the factory has increased and the traffic in that area has increased, there had been unfortunate accidents also.
“So it is a total economy policy which council considered and approved because it gives support to industry, it enables us take benefit of our tax law to renew infrastructure at a time we are really challenged for resources to finance all our routes. It also enables us to save lives by quickly and urgently rebuilding that road so that other commuters who also depend on that road for their livelihood would also benefit from the road.”

http://thenationonlineng.net/fec-okays-dangote-lokoja-ilorin-road-construction/

I think this is good. We can then focus and channel the money to other roads

Amazing decision

See attached map, the distance is 43KM

Aliko Dangote is the luckiest human being alive!!! Very soon he will be handed Nigeria to "manage"

Got Tax incentive to build the road that services his business, a road that was primarily damaged by his heavy duty trucks!!




*modified*

This is an improvement on the 1% tax he used to pay in the past...

http://nairametrics.com/and-heres-a-recap-of-this-weeks-trending-stories/

All hail Alhaji Putin.

modath:

Aliko Dangote is the luckiest human being alive!!! Very soon he will be handed Nigeria to "manage"

Got Tax incentive to build the road that services his business, a road that was primarily damaged by his heavy duty trucks!!

are you sure that road was ever in good condition? I'm aware of ayetoro-ibeshe-ilaro, he reconstructed the road without input from the government.

OlujobaSamuel:

are you sure that road was ever in good condition? I'm aware of ayetoro-ibeshe-ilaro, he reconstructed the road without input from the government.

Do you honestly believe any road exists that wasn't "ever in good condition"?

The road was in a good shape even while the factory was being constructed,soon as he finished and those heavy trucks became a permanent fixture on that road, gbege happened....

I'm talking 07-11 or thereabout...

modath:

Aliko Dangote is the luckiest human being alive!!! Very soon he will be handed Nigeria to "manage"

Got Tax incentive to build the road that services his business, a road that was primarily damaged by his heavy duty trucks!!

Actually, this has legal backing so it is not only about Alhaji Putin.

Personally, I prefer coporations do this to paying taxes

Mynd44:

Actually, this has legal backing so it is not only about Alhaji Putin.

Personally, I prefer corporations do this to paying taxes

God knows I don't have anything against his person or business ventures but how he gets "lucky" with every successive government is a source of mystery!!

He should have fixed that road long before now!! That road shaved off more than 90mins of travel time between Abj and the SW...

Its state of disrepair contributed to the death trap and vehicle damaging expanse of okene-lokoja!! That road is real inilara and afonilori...

Anyway Alhaji Putin will always be Alhaji Putin sha...

modath:


Do you honestly believe any road exists that wasn't "ever in good condition"?

The road was in a good shape even while the factory was being constructed,soon as he finished and those heavy trucks became a permanent fixture on that road, gbege happened....

I'm talking 07-11 or thereabout...

If my memory serves me right that road has long been in a bad state. Though his trucks eventually murdered it beyond repair. I wonder does he even pay anything for using the mineral resources?He seems more interested in being world richest than doing more to developed our country.

modath:




God knows I don't have anything against his person or business ventures but how he gets "lucky" with every successive government is a source of mystery!!

He should have fixed that road long before now!! That road shaved off more than 90mins of travel time between Abj and the SW...

Its state of disrepair contributed to the death trap and vehicle damaging expanse of okene-lokoja!! That road is real inilara and afonilori...

Anyway Alhaji Putin will always be Alhaji Putin sha...

true talk

modath:


Do you honestly believe any road exists that wasn't "ever in good condition"?

The road was in a good shape even while the factory was being constructed,soon as he finished and those heavy trucks became a permanent fixture on that road, gbege happened....

I'm talking 07-11 or thereabout...

honestly, I don't know about the road, just speaking in comparison with the one at ibeshe, the road na eyesore before he established his factory there, but he reconstructed it.

modath:



He should have fixed that road long before now!!

Why do the government's duty if it won't give you anything in return? He's a smart businessman. Nothing goes for nothing!

Mynd44:

Actually, this has legal backing so it is not only about Alhaji Putin.

Personally, I prefer coporations do this to paying taxes

@your attached image, I think big corporations should tap into that, there will be ease of life and business in almost every state of the federation, but some will still prefer the tax route because they know they can evade tax at will without much effort from the government to force them to pay.

Stalwert:


If my memory serves me right that road has long been in a bad state. Though his trucks eventually murdered it beyond repair. I wonder does he even pay anything for using the mineral resources?He seems more interested in being world richest than doing more to developed our country.

Nope! The road may not have been the best thing after sliced bread but it was motorable, you could do 100 without fear then...

The road didn't become craters till trailers carrying 600-900 bags of cement became a permanent fixture...

GenOrumov:

Why do the government's duty if it won't give you anything in return? He's a smart businessman. Nothing goes for nothing!

I beg to differ, Nigeria is a peculiar place, he gets "breaks" and "favours" that other business people in other climes don't or will never ever get so "more" is expected!

Moreover, his business spoilt the road nah & make a nor lie, bad belle join... just make person travel time increase for nothing!

modath:



I beg to differ, Nigeria is a peculiar place, he gets "breaks" and "favours" that other business people in other climes don't or will never ever get so "more" is expected!

Moreover, his business spoilt the road nah & make a nor lie, bad belle join... just make person travel time increase for nothing!

I understand how you feel @ the bolded. I even fear that with the way he's going, he may end up owning Nigeria reason being that he has a huge share of vital sectors of our economy (food, cement then the most important which is OIL ).

But I must admit, he's really a smart businessman.

If you hear SELL IT and you think is OLX

Who gives me tax incentives for generating my own light, water and fixing the road in front of my house


Naija

Good move but same idea shld be applied to some other places this this.

I think this is wrong.

We need full details to be able to determine if this is good for us or not.
1. Is the 30% concession tax for the entire Dangote Grp or for just the cement factory in Lokoja?

2. For how many years will Dangote hold back the 30% tax?

3. By when must the project be completed and handed over?

4. Is there a minmum quality standard specified for the construction work?

5. Will the FG supervise the work to ensure standards are met?

6. Has a cost estimate for the project been done and compared to the 30% concession tax. That way, we will know how much we lose or gain by this arrangement.

Without answers to these questions, I say it's not a good strategy.

Great business decision by both parties I must say. Tax rebate in return for provision of infrastructure by a party that stands to benefit the most from the project.

Very sure he'd make a fantastic job of it, because anything short of that would result in him incurring heavy losses on repairs and maintenance of his fleet of trucks.

We would like the government to provide a bit more details regarding the deal, just as they laid the budget bare for all to see.

nickxtra:
I think this is good. We can then focus and channel the money to other roads

Exactly.

I feel it's a good decision on the part of the government, because this guy has always tax waiver in the past without doing anything and he will continue to get tax waiver as far as Nigeria is concerned, so instead of him getting something for nothing, it's better this way at least he's giving something back to the society

govt of a.bo.ki to a.bo.ki n for a.bok.i

omenka:
Great business decision by both parties I must say. Tax rebate in return for provision of infrastructure by a party that stands to benefit the most from the project.

Very sure he'd make a fantastic job of it, because anything short of that would result in him incurring heavy losses on repairs and maintenance of his fleet of trucks.

We would like the government to provide a bit more details regarding the deal, just as they laid the budget bare for all to see.

Intelligent input u gat there! Keep it up!

Ok

This is a good deal in my honest opinion. If the monex for tax is paid to the FG, only God knows if the money wouldn't be used to fund some silly recurrent expenditures, e.g. Aso Rock feeding. Dangote building the road would benefit much more people than whatever the FG can do if it receives that tax money.

I suppose Fashola is a smart man, he would certainly advertise and exploit tax incentive policies like this to skillfully maximise allocations to his ministry indirectly by reducing the FG's road burden.

I am 100% sure that this govt will get it right!

Na wa o. Which kind country be this? For How long will he withhold the 30% tax? Is it eternal? When will he complete the road? May we see the specification? This looks fishy!



BTW: Dangote is the real AGIP

DropShot:
I think this is wrong.

We need full details to be able to determine if this is good for us or not.
1. Is the 30% concession tax for the entire Dangote Grp or for just the cement factory in Lokoja?

2. For how many years will Dangote hold back the 30% tax?

3. By when must the project be completed and handed over?

4. Is there a minmum quality standard specified for the construction work?

5. Will the FG supervise the work to ensure standards are met?

6. Has a cost estimate for the project been done and compared to the 30% concession tax. That way, we will know how much we lose or gain by this arrangement.

Without answers to these questions, I say it's not a good strategy.

The govt will definitely take all the above points into consideration!

NOETHNICITY:
The govt will definitely take all the above points into consideration!

But we deserve to know those details. Only then we can hail the decision or condemn it.

Stalwert:


If my memory serves me right that road has long been in a bad state. Though his trucks eventually murdered it beyond repair. I wonder does he even pay anything for using the mineral resources?He seems more interested in being world richest than doing more to developed our country.

Nigerians loving awoof since 1914!

So I guess we can all request for tax breaks for all the street roads that lead to our houses that we have fixed. The law says any individual (you and I) and says any publicly owned (other people use the road too). Hence we are entitled to tax breaks as well.

Heck it also includes buying of electric poles and transformers for our area. Hope we can hold Mr Fashola to this. Naija, lets wise up. If its good for Dangote, it's good for us too in our own little ways.