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FEC Awards Dangote Industries N309bn Road Contracts As Tax Credit

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FEC Awards Dangote Industries N309bn Road Contracts As Tax Credit

The Federal Executive Council (FEC), has awarded a contract to Dangote Industries to construct five roads totalling 274.9 kilometres at N309,917,717,251.35 as a tax credit.

Newsrand understands that a tax credit is an incentive given to taxpayers, usually subtracted directly from taxes owed or expected to be paid to the government.

Disclosing this development, the minister of works and housing, Babatunde Fashola, while briefing state house correspondents at the end of the FEC meeting presided over by President Muhammadu Buhari, explained that the road contract, which was the second approved for ministry by the council, will be executed on concrete and will be the larger of such project in the country.

“The second memorandum presented by the ministry was for the construction or the reconstruction, as the case may be, of five road projects in favour of Dangote Industries Limited, totaling 274.9 kilometres of federal roads, under the Federal Government Roads Infrastructure Tax Credit policy,” he said.

“Those five roads totaling 274.9 kilometres will cost N309,917,717,251.35 to be advanced by the Dangote Industries as tax credit.

“The roads, specifically, are Bama to Banki in Borno State for N51.016 billion with 49.153 kilometres; Dikwa to Gamboru-Ngala, 49.577 kilometres in Borno State for N55.504 billion; the Nnamdi Azikiwe Road, popularly known as a Western Bypass in Kaduna. 21.477 kilometres, from Command Junction to Kawu, in the sum of N37.560 billion.

“Others are deep seaport access road sections 1 and 3 in Lagos State, through Epe to Shagamu Expressway, 54.24 kilometres, that links Lagos and Ogun states, in the sum of N85.838 billion and the Obele/Ilaro/Papalanto to Shagamu Road, 100 kilometres in Ogun State, in the sum of N79.996 billion.

“Council considered and approved this memorandum to facilitate the construction of 274 kilometres of concrete roads. So, this will be the largest single award of concrete roads ever undertaken by the government of Nigeria in one award.”

Fashola explained that the award of the contract to Dangote Group was consistent with funding options.

“First of all, the award is consistent with our multiple funding options, which includes engagement with the private sector,” he explained.

“Secondly, the tax credit initiative was in existence in the last administration before this government but was not utilised. So, this administration has revised it, expanded it, and has used it to construct roads like the Apapa Wharf Road, the Oworonsoki to Apapa, through Oshodi Road, by the same Dangote Group.”

“The Obajana-Kabba Road, still the Dangote Group. The Bodo-Bonny bridges and road, which Council approved last week, through the NLNG.

“There was also interest by many other companies that are being reviewed. So, it’s not unique to Dangote. So, he’s the one who has applied and we’ve been in this process. So, this is the next batch of roads that they are taking up.

“They invest their money, and then instead of when their taxes come due for payment, they net it off. That’s the circumstance. This is not concessioning, this is tax credit policy, don’t let’s mix them together.

“The policy says that anybody who wants to invest his personal resources, and it includes individuals, in any infrastructure that the public will have access to, can do so under certain conditions, which includes applying to the Ministry of Works.

“The ministry evaluates, and the Minister of Finance chairs a tax credit committee because they keep an eye on how much tax giveaway in one year, so that it doesn’t affect government’s revenue performance, once we take on the investment.

“So, it’s the committee that then approves and says go ahead, this is good, this is how much tax we’ll allow per year, and if the company is satisfied, then we go to BPP and then come to FEC.”

The other approval obtained by the works ministry was to revise the total cost of the contract for the construction of Michael Imoudu/Ganmo/Afon Junction Road in Ilorin, Kwara State.

Fashola said the government also considered and approved the request to revise the cost of the construction of part of Michael Imoudu/Ganmo/Afon Junction road in Ilorin, Kwara state by N204,411,926.13, adding that the original contract sum was revised from N1.691 billion to N1.896 billion and the completion period is now 12 months.

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LAWMA Showers Encomium on Dangote Sinotruk

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LAWMA Showers Encomium on Dangote Sinotruk

Lagos Waste Management Authority (LAWMA), heaped praises on world Dangote Sinotruk, a company owned by Dangote Industries Limited and Sinotruk of China.

 

In an exclusive interview with NEWSRAND during a visit to the company’s plant factory at the Ikeja area of Lagos, Engineer Ajayi Abimbola, Assistant General Manager, (AGM) Engineering Services, LAWMA, said the automobile company is customer-friendly, adding that the trucks and other products from the company are world-class.

 

In the course of the conversation, Abimbola disclosed that the agency has procured waste management trucks, numbering 102, from the company.

 

“For over a year now, we’ve been working with Dangote Sinotruk to achieve a cleaner Lagos. So far, we were able to patronise 102 trucks to ensure that Lagos environments are clean and wastes are properly managed. The trucks are ready, and we hope to commission them any moment from now,” he stated.

READ ALSO: Dangote Cement Acquires 2,000 Trucks for Distribution of Products

While assuring that the partnership between LAWMA and Dangote Sinotruk will continue, Abimbola explained that the newly-purchased trucks from the company will “ensure that we have a cleaner environment, the health hazard will be totally eliminated.”

 

According to him, amongst the new-purchased trucks are -24cbl and 12cbl, adding that the waste management operations in Lagos will experience a new revamp.

 

“Unlike before, it takes 2-3 days to lift waste, what we are looking forward to doing with the new trucks is a turnaround evacuation of market wastes. The marine waste too, will be taken care of, because the truck is will guarantee us that capacity we need to do it,” he added.

 

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Falekulo Promises New Era For Nigeria Reinsurance Corporation

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Falekulo Promises New Era For Nigeria Reinsurance Corporation

The newly appointed Managing Director of Nigeria Reinsurance Corporation, Mr Olugbenga Falekulo, has declared the readiness of his team to take the company to the next level in the market.

Falekulo, in a statement issued on Wednesday said that he would adopt a new dimension to push the Reinsurance firm into a new era.

He explained that the reorganisation of the board and executive management of the reinsurance company was to ensure that the firm continued in its quest for transparent and accountable management of insurance in the country.

The managing director said he would bring to fore his wealth of experience and professionalism gathered in the insurance sector for over 25 years to transform the firm.

READ ALSO: Reps. Move To Suspend Recapitalization Of Insurance Companies

Recall that the National Insurance Commission (NAICOM) had on Monday approved a new board and management for NICON Insurance Limited and Nigeria Reinsurance Corporation (Nigeria Re).

The commission said the changes in the board and management of the two insurance firms was sequel to the takeover of the major investor’s interests in the two organisations by the Asset Management Corporation of Nigeria (AMCON), and the Bureau for Public Enterprises (BPE) .

“BPE is working in partnership with AMCON to bring the much-needed stability in the operation of the organisations , enhance smooth running, efficient and effective management of the two firms”.

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Oando Share Price Jumps by 10% Following Oando’s Settlement with Regulator

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Oando Share Price Jumps by 10% Following Oando’s Settlement with Regulator

Months after a plethora of court cases with counter judgments the investment community was greeted on the evening of Monday July 19, with the news of an amicable settlement to the long-standing dispute between the Securities & Exchange Commission (SEC) and the management of Oando PLC.

 

Unsurprisingly, Oando has since joined the Nigerian Stock Exchange (NSE) top gainers with a 9.87% increase in its share price from N3.97 on Friday, July 23, 2021, to N4.36 on Monday, July 26, 2021. The share price appreciation can be attributed to the recent settlement which saw Adewale Tinubu and his Deputy, Omamofe Boyo remain at the helm of affairs in the organization. Following the settlement news, investors poured into the stock helping it top the gainer’s chart.

 

Speaking on the jump in share price, an Oando shareholder in Lagos said, “We are glad that the dispute is finally over, and we thank the regulator and the management of Oando PLC for resolving the issue in the best interests of the shareholders. For four years, we the shareholders have been the ones on the receiving end. In just one week of settling, our share price has seen a significant increase. I am confident in the management of the company led by Wale Tinubu, other CEOs in his shoes might have caved in but he did not. He held strong to his belief and forged on till the end of the issue. I am hopeful that now that they are able to be fully focused on the business, we the shareholders will soon start to see a return on our investment.”

READ ALSO: Oando Foundation to Promote Environmental Education and Sustainable Action In Schools

A statement by the regulator reads that Oando neither denied nor accepted liability and the settlement will lead to the withdrawal of all pending court cases. Recall that Wale Tinubu and some of the company’s affected Directors had sued the regulator for infringement of their fundamental human rights in 2019. However, with the settlement, Wale Tinubu and all affected Directors will be required to withdraw said court cases while remaining in their respective executive leadership roles managing the company.

 

In addition, there will also be “payment of a monetary sum; and an undertaking by the company to implement corporate governance improvements.”

 

Speaking on the settlement, another shareholder said: “The regulator has done what it ought to have done months ago. I commend them for making this landmark settlement. This is not a time to erode homegrown businesses but to nurture them so they can continue to create value for the capital market and country at large seeing as we are currently in a recession. I especially commend the resilience and perseverance of Wale Tinubu for seeing this dispute through to resolution.”

 

Market players will be watching the impact of the signaling effect of the SEC settlement on Oando’s share price in subsequent days.

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