The Senate Committee on Finance has dismissed the proposal presented by the Federal Inland Revenue Service (FIRS) regarding a stay of action on the N2.7 trillion Tax Credit Fund intended for specific road construction projects under the Federal Ministry of Works.
During a recent interface with the committee, FIRS Chairman, Zacch Adedeji, opposed the additional N2.7 trillion requested by the Ministry of Works, facilitated through the Nigerian National Petroleum Company Limited, to fund road projects under the Tax Credit Scheme.
In response, Minister of Works, Senator David Umahi, countered Adedeji’s stance during a committee session on Thursday. Umahi clarified that the N2.7 trillion wasn’t a new request but rather a funding gap incurred as of January that year.
Umahi elaborated on the Tax Credit Scheme’s role in rehabilitating critical roads across the country over the past three years. He explained the concept of Tax Credit as the prepayment of taxes by involved agencies, channeled into infrastructure development. He cited the successful reconstruction of the Apapa-Oshodi Road by Dangote Plc under the scheme as a prime example.
Umahi emphasised the importance of the N2.7 trillion funding gap for ongoing road projects initiated under the scheme. He noted that only N650 billion had been released in two batches for executing these projects, making the additional funding imperative for completion.
Highlighting the ministry’s budgetary constraints, Umahi stressed the need for substantial appropriations by the National Assembly for road infrastructure development. He suggested an allocation of N4.4 trillion for constructing 100 kilometres of roads in each of the six geopolitical zones.
In his concluding remarks, Committee Chairman Senator Sani Musa (APC Niger East) expressed support for the Tax Credit policy as a solution for addressing urgent infrastructure needs. He advocated for the release of the N2.7 trillion to complete ongoing projects under the scheme but proposed a halt on fresh implementation outside of this fund.
