Flour Mills To Construct Atan - Agbara Road, Says Fashola - THE DAILY CRUCIBLE



Thursday, October 1, 2020

Flour Mills To Construct Atan - Agbara Road, Says Fashola

                      •Photo credit : Google

From Ayobami Ife, Abeokuta

Minister of works, power and housing, Babatunde Fashola, has disclosed that  Flour Mills of Nigeria Plc will construct the deplorable Atan-Agbara road in Ogun State, under the Road Infrastructure Tax Credit(RITC) scheme of the Federal Government.

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

This is sequel to the October 2017 announcement by the Federal Government of Nigeria (FGN) of the Road Infrastructure Tax Relief Scheme for the Private Sector, the Nigerian President on Friday, 25 January 2019, signed the Executive Order on the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme (the “Order or Scheme”). The Scheme is for a ten (10) year duration that should expire on 24 January 2029.

The Scheme grants income tax credit to private sector entities that provide funding for the refurbishment and rehabilitation of Eligible Roads. The Order defines “Eligible Road” as any road approved by the President as eligible for the Scheme. The President’s approval must be upon the recommendation of the Minister of Finance (the Minister) who in turn must have been presented with a list of eligible road projects by the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme Management Committee (the Committee). The Minister is the chairman of the Committee.

Participants in the Scheme are entitled to full recovery of their costs (“Project Costs”) for the construction or refurbishment of Eligible Roads plus an uplift that is set at the prevailing Central Bank of Nigeria Monetary Policy Rate plus 2% of Project Costs (“Uplift”).

The Project Costs plus Uplift will be recognized as credits for defraying companies income tax (CIT) liabilities, which means that the Uplift will not be regarded as income in the hands of participants of the Scheme.

This will be cheery news to the industries located in Atan-Agbara area as well as small and medium business operators, residents and indigenes.

Atan-Agbara hosts over 80 industries manufacturing various consumer goods being distributed across the country.

Notable industries on the axis include 
Cometstar Manufacturing Company Ltd, GZ Industries, Drury Industries Limited 
GlaxoSmithKline (GSK), Unilever, Nestle Plc, Beloxxi Group, Procter & Gamble, Sunsteel Industries Ltd among others.

The road links Agbara, Atan, Ota, Sango, Lusada, Badagry, Ojo and other commercial points in Ogun state and Lagos.

But the deplorable state of the roads has remain an obstacle to productivity. 

For the manufacturers and transporters on that route, it is a routine nightmare, particularly during rainy season, as goods worth millions of naira are lost to frequent mishaps on the road.

The road also shorten the lifespan of vehicles plying it, forcing some transporters, especially those that bought their vehicles through 'hire purchase' scheme, to avoid that route.

At a time Atan - Agbara community and small and medium business operators staged a protest during the administration of Senator Ibikunle Amosun to express their displeasure on the worsening state of the road, the neglect by the Ogun State Government and all of those had continued to stymie growth and development in the community.

However, Fashola has assured that the road will be fixed soon by Flour Mills via the RITC.

He  disclosed the Atan - Agbara road rehabilitation arrangement while speaking on The Platform, a virtual event held to mark Nigeria's 60th Independence anniversary on Thursday.

He also revealed that Dangote Group is spending about N77 billion which it would have spent on tax, on constructing the Apapa-Oworonshoki road.

“The policy, as you rightly put it, allows companies and even individuals expend what would have been their tax ahead,” he said.

“If you don’t make a profit as a company, you are not taxable. And therefore, the amount of traction you will see is a function of the turnover, the profits and taxable income that company or that individual can expend," he said.

According to the former Governor of Lagos State, significant developments have been made in constructing roads in Lagos, Kabba and Bonny Island under RITC.

- Source of information on RITC : Taxaide

No comments:

Post a Comment