MTN Nigeria has prepaid the sum of N12.032 billion, towards the reconstruction of the dilapidated Enugu-Onitsha Expressway.
“This is the capitalised costs towards to the reconstruction of the Enugu-Onitsha expressway for the Road Infrastructure Development and Refurbishment Investment Tax Credit (Road Tax Credit) Scheme,” MTN Nigeria said in notes accompanying its Half-Year financial statement.
The telecoms giant is expected to complete the dualisation of the 110-kilometre road.
The RITC scheme grants income tax credit to companies and individuals that provide funding for the refurbishment and rehabilitation of roads.
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.
Participants will be entitled to utilise 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.
In August 2021, MTN announced plans to reconstruct the Enugu-Onitsha expressway, under the RITC.
Nigeria’s ex-President Muhammadu Buhari signed, on 25 January 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.