The Nigerian government has awarded Dangote Industries Limited a tax credit worth N309.9 billion ($752.75 million) in the form of five road contracts.
Africa’s wealthiest man, Aliko Dangote, is the founder and largest shareholder of Dangote Industries.
Nairametrics reported the move, which was initiated on July 14 by the Federal Executive Council. The contracts fall under the state road infrastructure tax credit policy.
Nigeria’s Works and Housing Minister Babatunde Fashola noted that the road will be constructed on concrete and be the largest in the country.
The five road projects, with a total length of 274.9 kilometers, will be designated as federal roads. Certain roads fall within the federal government’s jurisdiction in Nigeria, while state governments manage the rest.
“The second memorandum presented by the Ministry of Works and Housing was for the construction or the reconstruction, as the case may be, of five road projects in favor of Messrs. Dangote Industries Limited, totaling 274.9 kilometers of federal roads, under the Federal Government Roads Infrastructure Tax Credit policy, which is one of our strategic partnerships with the private sector,” Fashola said.
Fashola noted that Dangote Industries has implemented other infrastructure projects for the government through the tax credit initiative.
He said the previous administration did not utilize the policy. Roads previously built by the Dangote Group include the Apapa Wharf Road and the Oworoshoki-Apapa axis, which is linked through Oshodi.