The Federal Republic of Nigeria has authorised a new Road Infrastructure Credit Regime for private companies, special purpose infrastructure funds and institutional investors (Target Firms). With the new regime, Target Firms who deploy own funds to construct or refurbish “Eligible Roads” across the six geo-political zones of the country will be entitled to deduct the cost of such projects from the companies income tax payable by such Participating Target Firms and to a single uplift equivalent to the prevailing Central Bank Monetary Policy Rate plus 2% of the Project Cost. Project Cost is defined to include the actual cost of road construction and/or refurbishment and also professional fees payable to lawyers, fund managers, or other consultants to the extent that expenses incurred in respect thereof are wholly, reasonably, exclusively and necessarily incurred for the purpose of constructing or refurbishing Eligible Roads. Professional fees are capped at 1.25% of the cost of road refurbishment or construction for projects over N10 billion
If you wish to participate in the Road Infrastructure Credit Regime, kindly reach out to your Balogun Harold contact or via email@example.com. A finalised copy of the Presidential Order detailing the mechanics of the new Road Infrastructure Credit Regime is available upon request.