Aliko Dangote

The Federal Executive Council (FEC) on Wednesday approved the proposal for Dangote Construction Company to use cement to build a section of the Lokoja- Obajana-Kabba-Ilorin road.

The Minister of Power, Works and Housing, Mr Babatunde Fashola disclosed this while briefing State House correspondents on the outcome of the Federal Executive Council meeting in Abuja.

He said the company would be executing the road project in exchange for some tax remissions.

“The memo presented to council for consideration seeks to take benefits of the existing policy and regulation.

“It seeks to take benefits of tax policies, tax laws for the purpose of using them to drive infrastructure development renewal.

“So, we presented a proposal by one of the subsidiary of Dangote group, a construction company, for the construction of a section of Lokoja-Obajana-Kabba-Ilorin road.

“Specifically, the section between Obajana-Kabba Road using cement as demonstrative of how perhaps we should continue to build, going forward in order to reduce maintenance on the road and the company proposing to fund the construction of that section of the road in exchange for some tax remissions,’’ he said.

“So, the detail is about 30 per cent income tax obligation spread over time.

“It doesn’t mean they won’t pay tax, they will continue to pay their tax obligation but they will get remission for making this investment because ultimately the road doesn’t belong to them but to government and is for the benefits of Nigerians.