The Senate yesterday rejected the stay of action proposal presented to it by the Federal Inland Revenue Service (FIRS) regarding the N2.7 trillion Tax Credit Fund needed for specific road construction projects by the Federal Ministry of Works.
During an interactive session yesterday in Abuja with the Minister of Works, Dave Umahi, Senator Sani Musa, Chairman of the Senate Committee on Finance from Niger East under the APC, emphasized the need to pause the implementation of the Tax Credit Policy beyond the allocated N2.7 trillion. He stated, “Tax Credit Policy is a welcome initiative meant for exigencies being addressed and based on submissions made by the Minister , the N2.7trillion , should be released for completion of Ongoing projects under the scheme.”
Previously, during a meeting with the Committee last week, Zacch Adedeji, the Chairman of the Federal Inland Revenue Service (FIRS), opposed the Ministry of Works’ request for an additional N2.7 trillion through the Nigerian National Petroleum Company Limited (NNPCL) for funding road projects under the Tax Credit Scheme.
However, Senator David Umahi, the Minister of Works, countered this argument before the Committee yesterday, clarifying that the N2.7 trillion was not a new request but rather a funding gap incurred as of January this year. He further explained that the Tax Credit Scheme has facilitated the rehabilitation or reconstruction of critical roads across the country over the past three years.
Umahi said, “Tax Credit simply means front loading of taxes of the affected agencies involved and using it for infrastructure development.
“A very good example of it , was the Apapa – Oshodi Road , reconstructed by Dangote Plc under the scheme which not only solved the problem of congestion on the road but provided solid road that can last 50 years life span .
“It is the same road infrastructure solution the N2.59trillion Tax Credits being offered through NNPCL is offering but not well funded yet.
”Only N650billion has been released through two batches for funding execution of the affected roads under the scheme ., making the N2.7trillion funding gap very necessary . We need the fund for completion of roads already started under the scheme”, he said .