The Chairman of the House of Representatives Committee on Federal Road Maintenance Agency (FERMA), Olufemi Bamishile has urged state governors to give tax concession to private companies in exchange of road construction.
The lawmaker cited the example of the 42.5km road recently constructed by Dangote group in exchange for tax break.
He made the call at the budget defence by management of FERMA before the Joint committee of the Senate and the House.
“I need to commend the Federal Government’s initiative in offering tax concession to Big companies to enable such companies embark on road construction work for the benefits of Nigerians. I am impressed with the work done on the 42.5 Kilometer Obajana-Kabba Concrete Road constructed by Dangote Group. The project cost was N11.5billion but awarded to Dangote Group on tax concession basis at #5.24billion. The difference of N6.2billion forms part of Corporate Social Responsibility of Dangote Group.
“I hope State Governments will emulate the Federal Government’s initiative by granting tax concession to Big companies operating within their States to embark on road construction projects to alleviate the sufferings of Nigerians plying such roads.
“I also commend the Road Tax Credit initiated by the Federal Government pursuant to Executive Order No 007 known as “Companies Income Tax (Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme) Order 2019 signed by President Muhammadu Buhari on 25tln January 2019. This is a good initiative. The Order encourages Public-Private Partnership intervention to enable Government to leverage private sector funding on road infrastructure in a manner that creates value for money through private sector discipline.”
Mr. Bamishile also asked the management of the road maintenance agency to furnish the committee with details of the status of all federal roads in the Country.
“in order to know the current status of these Roads and other Roads in the Country, there is a need to have a large-scale assessment of the current state of Nigerian roads.
“In this regard, I urge FERMA to collate the list of all the Roads in the Country stating their current status and furnish same to the Committee Within two weeks after the conclusion of this Budget Defence. This effort will help the Committee to know which Road needs urgent attention and necessary action,” he stated.
