We have not gotten any tax rebate from govt — Dangote

The Dangote group of companies have denied the wildly held impression, that it is getting a 10year tax rebate on the construction of the Apapa-Oworonshoki, 35 kilometre road in Lagos.

In a media briefing by the Group Executive Director, Edwin Devakumar, at the group’s corporate head office yesterday, he also disclosed that, contrary to widely held views, the group has never gotten any preferential tax incentives in its entire history as a business concern.

Criticism penultimate broke out week, when the Minister of Power, Works and Housing, Babatunde Fashola, while speaking at the Businessday Road Construction Summit, announced the government’s decision to review the five-year limit on tax order enjoyed by the group to a 10-year period to sustain private investment in road infrastructure.

Devakumar said: “We approached the government to allow us to repair the Apapaijora-wharf road, free of charge, as a corporate social responsibility of the Dangote group. The government then approached us for the comprehensive construction of the Apapa- Oworonshoki road which is about 35 kilometres.

Devakumar said: “Knowing fully well that the government has a cash flow problem, we proposed the same model we are applying on the 44 kilometre ObajanaKabba road, which build the road entirely with our money and recover over a three year period.”

“So we said to the government, conduct a competitive bidding for the construction and we will build same for 15 to 25 per cent less than the lowest bid, in addition, we will recover our funds in a ratio of 50 per cent the first year, 25 per cent the second year and 25 per cent the third year. So there is no tax credit anywhere.”