The Federal Inland Revenue Service (FIRS) has issued Dangote Cement Plc, tax credit certificates valued at ₦22.321billion.
The tax credit certificates are for the construction of Apapa-Oworonshoki-Ojota road in Lagos and the Lokoja-Obajana-Kabba road connecting Kogi and Kwara states.
While Julius Berger is handling the construction of these two federal roads, Dangote Cement Plc is providing the funding.
To compensate Dangote Cement, the federal government has issued the company these certificates to cover for the tax that Dangote Cement would have paid.
Executive Chairman of the FIRS, Muhammad Nami, represented by Coordinating Director, Tax Operations Group, Mr. Femi Oluwaniyi gave this clarification in Abuja on Wednesday when he presented the two tax credit certificates to Dangote Cement.
The tax credit certificates for the Apapa – Oworoshoki – Ojota expressway is valued at ₦21.6 billion while the tax credit certificate for the Lokoja-Obajana-Kabba expressway is valued at ₦721 million.
This is the second tax credit certificate the Federal Inland Revenue Service (FIRS) will be issuing to Dangote for the Lokoja-Obajana-Kabba road construction. ₦9.5billion tax credit certificate had earlier in 2019 been awarded to Dangote Cement Plc for the Lokoja-Obajana-Kabba road.
Muhammad Nami who was represented by Mr. Femi Oluwaniyi Coordinating Director, Tax Operations Group of the FIRS said “government came to that reasoning that if we could encourage local investors to do the needful and of course under an agreement with some due monitoring and approvals then some of the monies they would have accrued back to government as taxes they would have paid.”