Private sector can now get tax credit for funding road construction

On Friday, Nigeria’s President, Muhammadu Buhari, signed an Executive Order 007, 2019 called Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme.  The new order will allow companies in the private sector to repair, develop and maintain major roads across the country. In return, participating companies will get a tax credit which can be used to settle future tax obligations.  To join the scheme, investors will submit workable proposals for road projects in any of the 36 States of the Federation.

This strategic partnership between the Federal Government and reputable investors will lessen the road infrastructure gap in Nigeria. The country’s budget deficit has hindered the government’s efforts in financing capital expenditure. Further guidelines on the operation of Executive Order 007 will follow.