In a series of tweets, Dolapo Oni, Head Energy Research Ecobank Group, explains why the government was right to give the Dangote Group a 10 year tax incentive
- Just in case anyone is complaining about this, let me explain why this is a good idea
- I've heard things like Dangote is not paying taxes; Dangote is just making money off Nigeria...what have taxes paid in the past achieved?
- Money that when collected, over 50% of it will go into debt repayment, 40% in salaries and 5% in subventions....not likely to do projects
- So rather than collect the money, we'll give you the tax credit while you deliver the key project - fixing a major artery/road with cement.
- The good thing is that the road now becomes an advertisement for Dangote Cement. If it scatters in one year...we'll say its Dangote Cement
- But if it lasts long, we'll have a good road, Apapa can offload cargoes a lot faster, trade improves, economy and citizens benefit...win/win
- If Government could adopt similar approach to housing, private sector can solve housing problem for government but Land Use Act is 'lava'