Breaking: MTN Nigeria to reconstruct Enugu-Onitsha expressway in exchange for tax credit

 

MTN Nigeria as part of moves to celebrate its 20th anniversary of operations in the country has announced that its Board of Directors has approved its participation in the Road Infrastructure Tax Credit (RITC) Scheme and will be rehabilitating the Enugu – Onitsha Expressway.

The Enugu-Onitsha expressway connects the South East and South South, through the Niger Bridge, linking Anambra, Enugu and Ebonyi States, as well as the North, via Benue and Kogi States.

Over the years, this all-important road, home to heavy vehicular traffic, has been in a very deplorable state.

But MTN in a statement said  “We intend to participate in the restoration and refurbishment of the Enugu-Onitsha Expressway. Conversations in this regard have already commenced, and further announcements will be made in due course,”

“In line with our desire to plant deeper and more permanent roots in Nigeria, we have also initiated plans to commission a purpose-built, state of the art MTN Head Office, designed to act as a central hub for our network, a catalyst for creativity and innovation, and a showcase for the flexible working structures that are driving efficiency gains in this new normal working environment.”

Aligned with wider commitment to environmental sustainability, MTN said the head office will meet the highest global environmental standards, demonstrating the role of green technology in our future.

Following MTN Group’s stated intention to sell down up to 14 percent of its investment in MTN Nigeria, subject to market conditions over the medium-term, MTN Nigeria’s shareholders approved an equity shelf programme at the last Annual General Meeting.

This will facilitate a process to increase ownership of the Company by more Nigerian retail and institutional investors.

Alongside this, MTN further localised its predominantly Nigerian management team with the appointment of Nigerians to two key senior positions (Chief Marketing Officer and Chief Information Officer) previously held by expatriates.

President Muhammadu Buhari signed on  January 25, 2019, the Executive Order No. 007 on Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme (RITC).

The Scheme is for a period of 10 years from its commencement date (remains to be clarified).

The Scheme is a public-private partnership (PPP) intervention that enables the Nigerian Government to leverage private sector capital and efficiency for the construction, repair, and maintenance of critical road infrastructure in key economic areas in Nigeria.

It is open to any Nigerian company (other than sole corporations), acting on its own or in collaboration with other Nigerian companies, and institutional investors (hereafter referred to as “Participants”) wishing to construct or repair any road identified and designated by the Government as an “eligible road”1 under the Scheme.

Participants will be entitled to utilize the total cost (Project Cost), incurred in the construction or refurbishment of an eligible road as a tax credit against their future Companies Income Tax (CIT) liability, until full cost recovery is achieved.