BUA Cement
BUA cement Plc to finance Lokoja-Benin road at N12O billion under tax credit scheme
The Federal Executive Council (FEC) has approved the equalisation of the Okpella section of the Lokoja-Benin road and others for N120 billion to be financed by BUA Cement Plc under the tax credit scheme.
The Special Adviser to the President on information and strategy, Bayo Onanuga disclosed this on his official X handle after the FEC meeting which started yesterday.
He said, “On Day 2 of the FEC meeting, approval was given for the award of contract for the equalisation of Lokoja-Benin Road, Okpela Section, Lokoja-Benin, Dualised Auchi Section -Uromi Link Road and Lokoja-Benin Road, Ekpoma Section.”
“It was on this road that a fuel tanker fell into high water recently, with villagers having to swim to rescue the occupants of the tanker. The reconstruction will be financed by BUA Cement at a cost of N120 Billion under the tax credit scheme.”
Mr. Onanuga also disclosed the award of contracts for other road projects across the country which includes Kaima-Tesse, Kwara State, Benin-Agbor, BeninByepass and Ngaski-Wara in Kebbi State which are estimated to cost around N546 billion.
It stated, “Council approved contracts to various contractors to build roads and bridges in Kaima-Tesse, Kwara State, Benin-Agbor, BeninByepass and Ngaski-Wara in Kebbi State. All the four contracts will cost N546 billion.”
Furthermore, N230 billion was approved as a contract to Messrs CCECC to build a Bypass in Kano. The project was estimated to be completed in the next 36 months.
What you should know about the Tax credit scheme
The Tax credit scheme was birthed through Executive Order 7 of 2019 by former President Muhammadu Buhari which established the Road Infrastructure Development and Refurbishment Tax Credit Scheme Order to last for 10 years from implementation.
- The order aims to foster public-private partnerships for road construction and maintenance. It authorizes private companies to finance road projects, thereby reducing the financial load on the Federal Government. In return, these companies will receive tax credits equal to their total expenditure on the roads.
- However, the scheme has come under criticism from the new FIRS boss, Zacch Adedeji who described it as unlawful and called for its termination.
- He criticized the operational framework of the tax credit scheme, proposing that the responsibility for awarding road contracts and managing payments should solely reside with the Ministry of Works. He also noted that a forthcoming meeting involving the FIRS, CBN, and the Ministry of Works is scheduled to evaluate the scheme’s progress and adjust efforts more effectively.
- Beyond the FIRS Chairman, financial experts have also criticised it stating that under the scheme, the federal government appropriates funds (Company Income Tax CIT) meant for the federation without the inputs of another level of government (state and local governments).
