By Franklin Alli

MANUFACTURERS Association of Nigeria, MAN, has thrown its weight behind federal government’s proposed tax holidays for road projects being undertaken by the private sector. The association said the incentive is in line with provisions in the new Road Trust Fund, RTF, policy, an initiative of the government to improve the country’s roads.

This was the reaction of MAN to the proposed tax holidays given to Dangote Group by the federal government to rehabilitate the 35 kilometres long Apapa to Oworonshoki highway end of Lagos-Ibadan Expressway.

MAN President, Frank Jacobs, while reacting to the issue, stated: ‘The Industrial Advisory Council which I belong to, came up with what we called Road Trust Fund, and our recommendation is that if any company or an entity or individual has money to tar road and that entity pays income tax, government will allow you to deduct the cost of the project from income tax.

“If the project costs an entity one billion naira, for example, the Apapa road which is concessioned to Dangote and Flour Mills of Nigeria to construct, government quoted that it was going to cost N20 billion but Dangote and others came up with a bill of N4.2 billion to do the same road. Government was excited because Dangote and others will use their own money to do it.

“Again, when the private sector builds road, the road is built faster. So, the RTF is a new policy, and it is not just for Dangote, it is open to any entity that wants to invest in the Road Trust Fund. Of course, you are eligible if you pay taxes regularly because it will be deducted from your tax.”