Abuja Logistics Limited is evaluating a new fleet management system costing ₦85,000,000. The system is expected to reduce annual operating costs by ₦22,000,000 and generate additional revenue of ₦8,000,000 per year. Applying Companies Income Tax Act (CITA) Cap C21 LFN 2004 (as amended) at a company income tax rate of 30%, what is the annual after-tax net benefit of the system?

Annual gross benefit = ₦22,000,000 + ₦8,000,000 = ₦30,000,000. Tax on benefit = ₦30,000,000 × 30% = ₦9,000,000. Annual after-tax net benefit = ₦30,000,000 − ₦9,000,000 = ₦21,000,000. Option B ignores tax entirely, option C represents only the tax amount, and option D is an arithmetic error. The system acquisition cost is a capital item evaluated separately in a full investment appraisal.