MTN wants more corporate bodies to invest in infrastructure
Following the Federal Government’s approval of MTN’s N202.8 billion reconstruction of the Onitsha-Enugu Expressway through its Road Infrastructure Tax Credit (RITC), the Chief Corporate Services Officer of MTN Nigeria, Tobechukwu Okigbo, has called for more public-private partnership (PPP) to speed up infrastructural development in the country.
He commented on the Ehingbeti Economic Summit’s technology panel session in Lagos.
The panelists, who discussed, ‘Driving Value through Tech by Positioning Lagos as a Top Destination for Innovators,’ comprised tech leaders, including Chief Operating Officer of Flutterwave, Bode Abifarin; Founder/Chief Executive Officer, Kasi Cloud, Johnson Agogbua; Senior Special Assistant on Science and Technology, Lagos State, Saheed Balogun and Principal Programme Manager – The Garage West Africa, Microsoft, Soromfe Uzomah.
The ninth Ehingbeti Lagos Economic Summit, themed ‘Lagos 2022- 2052: Charting the Paths to Sustainable Socioeconomic Growth,’ provided a constructive and engaging forum for members of the public and private sectors to share ideas that will stimulate socio-economic growth not only in Lagos but throughout the country, such as the RITC scheme.
Speaking about how funding creates the foundation for building innovative ecosystem clusters, the CCSO, MTN Nigeria, said: “I suggest that the government work on creating an environment, put policies in place and allow corporate bodies invest in infrastructure. The more the corporate bodies do it, the less the government has to invest and the more money the government has to intervene in the specific places that need intervention.”
The latest partnership between MTN and the federal government is an example of how the government can facilitate the enabling environment for the private sector to invest in infrastructure that will propel economic growth.
Recall that in January 2019, President Buhari signed Executive Order 7 establishing the RITC scheme, which allows the private sector to invest tax liabilities in the country’s road construction, repair, and maintenance. The scheme saves the government money while also ensuring that other critical sectors receive much-needed funding.
Participating companies will be entitled to claim a tax credit for the total cost (project cost) incurred in the construction or rehabilitation of an eligible road against their future Company Income Tax (CIT) liability until full cost recovery is achieved.
MTN Nigeria expressed readiness to reconstruct the Enugu-Onitsha expressway under the RITC in August 2021, and with this approval, the ICT giant will complete the dualisation of the 110-kilometre road.
According to a Global Competitiveness Report, Nigeria ranks 131st in the world and 31st in Africa based on performance in the provision of road infrastructure, with a score of 2.5 out of 7. Despite having the continent’s largest economy, Nigeria continues to struggle with improving its transportation system to meet its needs.