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Dangote To Construct Lokoja-ilorin Road -FG - Politics - Nairaland

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Saraki Claims He Borrowed N5b From Dangote To Fund Buhari's Election - Sahara R. / FEC Okays Dangote For Lokoja-ilorin Road Construction / Dangote To Construct Lokoja-ilorin Road (2) (3) (4)

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Dangote To Construct Lokoja-ilorin Road -FG by DonaldYusuf(m): 4:34pm On May 18, 2016
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.

http://thenationonlineng.net/fec-okays-dangote-lokoja-ilorin-road-construction/
Re: Dangote To Construct Lokoja-ilorin Road -FG by evy1(m): 4:35pm On May 18, 2016
Choi see deal.but why 30% ?

1 Like

Re: Dangote To Construct Lokoja-ilorin Road -FG by lifezone247(m): 4:36pm On May 18, 2016
Good move. But 30%? lipsrsealed
Re: Dangote To Construct Lokoja-ilorin Road -FG by Mynd44: 4:37pm On May 18, 2016
https://www.nairaland.com/3112868/federal-executive-council-approves-tax
Re: Dangote To Construct Lokoja-ilorin Road -FG by Benikuuse(m): 4:38pm On May 18, 2016
Good deal a working power of privatization

1 Like

Re: Dangote To Construct Lokoja-ilorin Road -FG by mrvitalis(m): 4:38pm On May 18, 2016
Wait 30% of the tax of the cement factory on that road or the dangote group as a whole
If it's for the whole group then this a bad deal

2 Likes

Re: Dangote To Construct Lokoja-ilorin Road -FG by DonaldYusuf(m): 4:48pm On May 18, 2016
mrvitalis:
Wait 30% of the tax of the cement factory on that road or the dangote group as a whole
If it's for the whole group then this a bad deal
I think It's for that factory and not the entire Dangote Group. But this guy Dangote!

2 Likes

Re: Dangote To Construct Lokoja-ilorin Road -FG by chriskosherbal(m): 4:50pm On May 18, 2016
What a welcome development.
Re: Dangote To Construct Lokoja-ilorin Road -FG by Mikehell(m): 4:52pm On May 18, 2016
So Dangote is now a contractor or better still an Engineer grin grin grin



The way these people are playing us eeehnn cool 30% of tax for how many years??

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Re: Dangote To Construct Lokoja-ilorin Road -FG by RichDad1(m): 4:53pm On May 18, 2016
Way to go.
Re: Dangote To Construct Lokoja-ilorin Road -FG by mrvitalis(m): 4:55pm On May 18, 2016
DonaldYusuf:

I think It's for that factory and not the entire Dangote Group. But this guy Dangote!

Don't worry am coming for him, Nigeria still has a lot of problems, that means lots of opportunities to make cool cash.. .. Am coming for but don't want to be as rich as him
Max of 10bn dollars mini of 7bn dollars

3 Likes

Re: Dangote To Construct Lokoja-ilorin Road -FG by Checked86: 5:00pm On May 18, 2016
Good deal for Dangote. But what baffles me about this government is their vague information. Will government pay at all or Dangote that will foot all the constructing bill. If it is Dangote, is it 30% of Dangote group or just the cement factory that is located at the axes. No one can say for sure whether subsidy has been removed or just mere fuel price hike. APC
Re: Dangote To Construct Lokoja-ilorin Road -FG by DropShot: 5:00pm On May 18, 2016
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. Is there a minmum quality standard specified for the construction work?

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

5. 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.

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Re: Dangote To Construct Lokoja-ilorin Road -FG by greatiyk4u(m): 5:04pm On May 18, 2016
Other moguls should follow suit.........people like PEACE MASS TRANSIT LTD

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Re: Dangote To Construct Lokoja-ilorin Road -FG by Maisuya1: 5:04pm On May 18, 2016
FACTS

In 2014 income tax for dangote cement was 27 billon Naira

In the same year income tax for the group was 25 billion Naira

Distance between lokoja and ilorin is ~ 330km

Lagos Ibadan is ~ 130km

Lagos Ibadan was awarded to Julius Berger and Reynolds Construction in July of 2013 for 167 billion Naira

Naira has since depreciated from that time to now

OPINION

I am not saying it is a good deal but you draw your conclusion from the above. IMHO, it's not a bad deal given we are cash strapped and in dire need of capital expenditure. But more details are needed on the deal

5 Likes

Re: Dangote To Construct Lokoja-ilorin Road -FG by bettercreature(m): 5:04pm On May 18, 2016
evy1:
Choi see deal.another way of evading tax.30%
Your sense of reasoning is a threat to our national security,You are fantastically clueless
This is exactly how america got to where it's today, through public-private partnership
I can't understand why our riche men can not invest in our roads,put toll gate,collect your money and remove your toll gate after few years
It's a very serious untapped investment

1 Like

Re: Dangote To Construct Lokoja-ilorin Road -FG by omenka(m): 5:06pm On May 18, 2016
evy1:
Choi see deal.another way of evading tax.30%
Bros, try do small background checks before you fire ya gun sometimes oo.

Have you asked how much the construction would cost?? Have you asked how much 30% of the company's tax over the specified period would be?? Do you know if both are equivalent??
if they aren't, what's the disparity?? Etc.

Whatever it is, I think this is a good deal. The doer stands to benefit a lot from it, so he'd do a good job for himself and the generality of the public.

1 Like

Re: Dangote To Construct Lokoja-ilorin Road -FG by bokohalal(m): 5:08pm On May 18, 2016
You lower your taxes when you give charitably. It is the rule ,especially in developed countries.

1 Like

Re: Dangote To Construct Lokoja-ilorin Road -FG by 989900B: 5:34pm On May 18, 2016
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. Is there a minmum quality standard specified for the construction work?

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

5. 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 above details are needed to decipher if good or bad.

1 Like

Re: Dangote To Construct Lokoja-ilorin Road -FG by tbaba1234: 4:55am On May 19, 2016
Mikehell:
So Dangote is now a contractor or better still an Engineer grin grin grin



The way these people are playing us eeehnn cool 30% of tax for how many years??

Dangote has the money to recruit contractors.

Both parties benefit. Government gets road fixed, Dangote gets a tax incentive.

In this time, when government is broke, it is a great idea.
Re: Dangote To Construct Lokoja-ilorin Road -FG by TechRez(m): 6:02am On May 19, 2016
bettercreature:
Your sense of reasoning is a threat to our national security,You are fantastically clueless
This is exactly how america got to where it's today, through public-private partnership
I can't understand why our riche men can not invest in our roads,put toll gate,collect your money and remove your toll gate after few years
It's a very serious untapped investment

Most govt do not like such partnership because road construction is the biggest avenue to loot.

There have been a couple of business men who have sent proposals in different states and FG level but we're dead on arrival. This looks like a smart move.
Re: Dangote To Construct Lokoja-ilorin Road -FG by goodlifehyd1: 6:05am On May 19, 2016
mrvitalis:
Wait 30% of the tax of the cement factory on that road or the dangote group as a whole
If it's for the whole group then this a bad deal
Pretty sure it's for the factory alone... 30% of the whole Dangote group's tax for "some years" will turn around the fortune of some states

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