Nigeria FG Grants NLNG N20bn Tax Waiver for Bodo Bonny Bridge Construction
Nigeria's Federal Government has granted the NLNG Company N20 billion (approx. US$49 million) tax waiver for the Bodo-Bonny road and bridge construction project in Rivers State.
President Muhammadu Buhari signed Executive Order Seven 07 in 2020. This order authorized that companies that provided critical infrastructure, including roads, be granted tax waivers.
The Bodo-Bonny road and bridge project links Bonny Island in Rivers State, Nigeria, to the Mainland. The scope of the project comprises construction of a 39 kilometres long road, cross culverts and two mini bridges with a span of 23 metres each as well as two creek bridges, Afa Creek Bridge of about 530 metres length and Nanabie Creek Bridge of about 640 metres length, in addition to the construction of a major river bridge of about 750 metres length over the Opobo Channel.
The project is being constructed under a Public Private Partnership (PPP) arrangement between the Federal Government of Nigeria and Nigerian Liquified Natural Gas (NLNG) limited. Under the terms of the PPP, NLNG provided 50% part-funding for the project and the Federal Government funded the balance.
The project cost is N120.681 billion (approx. US$294 million), according to the Federal Inland Revenue Service (FIRS).
Mr. Muhammad Nami, the Executive Chairman of the FIRS, presented the road infrastructure credit certificate to the NLNG Company in late April 2021. Mr. Muhammad was represented by Coordinating Director, FIRS Tax Operations Group, Mr. Femi Oluwaniyi. He urged other corporate bodies to join NLNG and Dangote Nigeria Limited to take advantage of the Federal Government’s tax credit facility.
Up to this point, NLNG has received three credit certificates in the last three years valued at N46 billion (approx. US$112 million). The third is the latest, and the fourth is expected to come within the year.
The FIRS boss lauded NLNG for paying its 2020 tax obligations three months ahead of time. These tax obligations were valued at N130 billion (approx. US$317 million).
Mr. Bayo Denrele received the tax credit on behalf of NLNG. He lauded the FIRS for its quick processing of the latest credit certificate in November 2020. Mr. Bayo said, “The speed with which the FIRS handled the issuance of this certificate is a testament to the efficiency of the FIRS.”
Nigerian construction firm, Julius Berger, is handling the construction works for the project, which includes constructing the Bodo Bonny Bridge and roads across Okpobo channels in River State. During an inspection visit to the project in November 2020 the Director of Road Designs in the Federal Ministry of Works and Housing, Engr. Omotayo Awosanya, stated that the Bodo-Bonny road will be ready in 2022. He also said that, on completion, the project will reduce the cost of oil production and other economic businesses in Rivers State, contributing to the development of the Niger Delta region.
Top Photo: Construction of Bodo-Bonny road and bridge project, Rivers State, Nigeria (julius-berger.com)