Business Why Dangote Group's 10-year Tax Incentive is a Good Idea - Dolapo Oni

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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
  1. Just in case anyone is complaining about this, let me explain why this is a good idea
  2. 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?
  3. 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
  4. 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.
  5. 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
  6. 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
  7. If Government could adopt similar approach to housing, private sector can solve housing problem for government but Land Use Act is 'lava'
Dolapo can follow Dolapo on twitter - @Dolarpo

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