The fund is a tax credit scheme to incentivize private sector participation, which was reinforced in the Executive Order No. 007 of 2019, the Companies Income Tax (Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme).
Vice President Yemi Osinbajo who disclosed this on Tuesday, stated that the cost-effective measures, embarked upon by the Buhari administration is now delivering 19 road projects across the six geopolitical zones in the country totalling 780.15 km.
Dangote Industries Limited, the Nigerian Liquefied Natural Gas Limited, and others are currently undertaking the construction of the roads which are in advanced stages of completion.
The reconstruction of Apapa-oshodi-oworonshoki-ojota Road in Lagos State (34 km) and the Obajana-Kabba Road in Kogi State (43km) are being undertaken by Dangote Industries Limited, while the construction of 38km Bodo-bonny Road and Bridges across Opobo Channel in Rivers State, is being handled by the Nigerian Liquefied Natural Gas Limited.
The Vice President, speaking at a webinar on Public-private Partnerships, organized by the Law firm of Yusuf O. Ali & Co in collaboration with the Business Law Department of the Faculty of Law, University of Ilorin, said the government had in 2017, introduced the Road Trust Fund (RTF).
“The fund is a tax credit scheme to incentivize private sector participation in the development of federal road infrastructure. The relief is enjoyed by a deduction of 50 percent of the amount spent on the project from the income tax that would have been payable by the company.”
The VP also referred to the Executive Order No. 007 of 2019, the Companies Income Tax (Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme), adding that the “objective of the Scheme is to accelerate public road infrastructure development by incentivizing private sector entities to construct and refurbish eligible roads across the country in exchange for tax credits, which could then be applied against company income tax payable,” he stated.
“Nineteen roads have been approved so far by Mr President under the Scheme, totalling, 780.15 km. These roads, in eleven (11) States across the six geo-political zones, are being executed by six (6) private sector players in the manufacturing and construction industries.”
Emphasising the importance of PPPs in funding critical infrastructure projects, the Vice President said: “there can hardly be a better time to explore the use of PPPs especially in the delivery of public infrastructure.”