MTN Nigeria, the largest network by market share, has announced plans to reconstruct the Enugu-Onitsha expressway, under the road infrastructure task credit (RITC) scheme.

Karl Toriola, CEO of MTN Nigeria, made this known in the company’s unaudited results for the half-year ended June 30, 2021, published on the Nigerian Exchange (NGX).

The RITC scheme grants income tax credit to companies and individuals that provide funding for the refurbishment and rehabilitation of roads.

The scheme is a public-private partnership (PPP) intervention that enables the Nigerian government to leverage private sector capital and efficiency for the construction, repair, and maintenance of critical road infrastructure in key economic areas in Nigeria.

Participants will be entitled to utilise the total cost (Project Cost), incurred in the construction or refurbishment of an eligible road as a tax credit against their future Companies Income Tax (CIT) liability, until full cost recovery is achieved.

In April, the federal government awarded Dangote Cement with tax credit certificates valued at N22.32 billion for the construction of construction of Apapa-Oworonshoki-Ojota road in Lagos and the Lokoja-Obajana-Kabba road connecting Kogi and Kwara states.

Toriola said the federal government and the telecommunications company have commenced discussions about the road project.

“2021 marks the 20th anniversary of MTN’s presence in Nigeria. As we celebrate this milestone, we are pleased to announce that our Board of Directors has approved our participation in the Road Infrastructure Tax Credit (RITC) Scheme,” Toriola said.

“This is in response to Government’s drive towards public-private partnerships in the rehabilitation of critical road infrastructure in Nigeria. We intend to participate in the restoration and refurbishment of the Enugu-Onitsha Expressway.

“Conversations in this regard have already commenced, and further announcements will be made in due course.”

Toriola said MTN Nigeria will invest N640 billion over the next three years to expand broadband access across the country, in line with the federal government’s 2020-2025 national broadband plan.

“In line with our desire to plant deeper and more permanent roots in Nigeria, we have also initiated plans to commission a purpose-built, state of the art MTN Head Office, designed to act as a central hub for our network, a catalyst for creativity and innovation, and a showcase for the flexible working structures that are driving efficiency gains in this new normal working environment,” he added.

“Aligned with our wider commitment to environmental sustainability, it will meet the highest global environmental standards, demonstrating the role of green technology in our future.

“Following MTN Group’s stated intention to sell down up to 14% of its investment in MTN Nigeria, subject to market conditions over the medium-term, MTN Nigeria’s shareholders approved an equity shelf programme at the last Annual General Meeting. This will facilitate a process to increase ownership of the Company by more Nigerian retail and institutional investors.”

TheCable had reported that MTN Nigeria lost lost 7.6 million mobile subscribers in the first half of 2021 due to regulatory restrictions on new SIM sales and activations.

Authority1o1:
Okay...


You're going to drop your jaw when you learn the amount of money generated through tax in Onitsha alone, not to talk of Enugu and environs. But why has this road remained this way?

This project has nothing to do with the magnanimity of MTN, which is a business, so don't get all happy. Every dime going into it will be recovered with toppings because you will be made to pay for it.

Which makes me wonder what the main tax paid by people is used for.

Authority1o1:
Okay...


You're going to drop your jaw when you learn the amount of money generated through tax in Onitsha alone, not to talk of Enugu and environs. But why has this road remained this way?

This project has nothing to do with the magnanimity of MTN, which is a business, so don't get all happy. Every dime going into it will be recovered with toppings because you will be made to pay for it.

Which makes me wonder what the main tax paid by people is used for.

DoggoneDogg:


Once that road is completed, many fatal accidents will start happening & MRN's share price will soar.

DoggoneDogg:
Another Otedola bridge loading...

Once that road is completed, many fatal accidents will start happening & MRN's share price will soar.

SirLakes:

This your thinking is barbaric.

Spits

Yadid:
Most folks won't see the booby trap in this seemingly kind gesture from MTN. The project cost will be inflated leaving them with more tax credit beyond necessary. This is Nigeria. Tax credit my foot. More so, the job done might not even be of standard quality. As long as the road is constructed and money is spent, they are entitled to a tax credit. Good luck!

"Participants will be entitled to utilise the total cost (Project
Cost), incurred in the construction or refurbishment of an
eligible road as a tax credit against their future Companies
Income Tax (CIT) liability, until full cost recovery is achieved."

Yampotatocarrot:
Nice initiative,