Authors
Expertise
Nigeria currently faces a critical infrastructure deficit projected at $3 trillion in the next 26 years. With an average annual budget of circa $29 billion in the last 10 years, of which figure only about 30% was allocated to capital expenditure, the Nigerian Government may not be able to singularly plug the infrastructure deficit in decades.
Nigeria currently faces a critical infrastructure deficit projected at $3 trillion in the next 26 years. With an average annual budget of circa $29 billion in the last 10 years, of which figure only about 30% was allocated to capital expenditure, the Nigerian Government may not be able to singularly plug the infrastructure deficit in decades.
The Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme (the Scheme) is an innovative introduction of the Federal Government of Nigeria, promulgated by the President in the exercise of his powers under Section 23 (2) of the Companies Income Tax Act. The Scheme has been introduced to incentivise private sector participation in the provision and maintenance of key Road Transportation Infrastructure across the country.
Summary of the Scheme
The Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme Order, 2019 (the Order) is an instrument for intervention in the road transportation sector of Nigeria. The Scheme establishes a framework for public private partnership, between the Federal Government of Nigeria and the private Sector, wherein the Federal Government of Nigeria may leverage on private sector funding for the construction or refurbishment of Eligible Road transportation infrastructure in Nigeria, and in exchange grant timely and full recovery of funds expended on the eligible road project (the Project Cost) through Tax Credit applicable to the Company Income Tax payable by the participant. The Scheme is for a term of ten years from the date of commencement of the Order.
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