Nigeria: Dangote begins construction of Itori-Ibese road

Nigeria: Dangote begins construction of Itori-Ibese road
06 June 2016

Dangote has begun construction of a network of concrete roads in Nigeria, beginning with a 24km stretch linking Itori and Ibese in Ogun state, Leadership reports.

Speaking at the inauguration of the first road, Aliko Dangote said that concrete roads offered a means to address the infrastructural challenges faced by African nations.

Dangote said: “We have also recently been finally awarded the contract to reconstruct the 42km Obajana-Kabba Road in Kogi State, in concrete. The estimated cost of the project is NGN11.5bn [US$58m] but the federal government has granted us a tax waiver to enable us to recoup part of the estimated cost at NGN5.6bn [US$28m] in tax credits and the balance will be our donation as part of our CSR.”

Asked about the granting of waivers to Dangote, Babatunde Raji Fashola, Minister for Works, Housing and Power, said: “It is a matter of law because there is an existing government policy that allows for government to give tax waiver in exchange of services from private investors especially in the area of infrastructural facilities provision which the government needs direly.

“On the other hand, Dangote already had a vision that sometime to come, Nigeria will need this kind of service like the road construction with concrete which would not need foreign exchange to execute. So he keyed into this and I hope other investors can take a cue from him. The law was not made for Dangote, it has been existing before now.”

Published under Cement News