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The Federal Inland Revenue Service (FIRS) has rejected the N2.59 trillion Tax Credit Scheme introduced three years ago by the former President Muhammadu Buhari administration for road construction across the country.
This rejection was conveyed by the FIRS chairman, Zacheus Adedeji, during an appearance before the Senate Committee on Finance, along with the chief financial officer of the Nigerian National Petroleum Company Limited (NNPCL), Umoru Ajiya.
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The Tax Credit Scheme, introduced through Executive Order 7 of 2021, aimed to facilitate road construction by providing tax credits to companies willing to fund road projects.
However, Adedeji argued that the scheme was unlawful and outside the mandate of FIRS, which is primarily responsible for collecting and remitting taxes into the federation account.
According to Adedeji, “It is not the duty of the FIRS and NNPCL to be paying contractors. The Ministry of Works should be in line with its core mandate, allowing it to award road contracts and pay for them.
The scheme was seen as a faster way for road reconstruction or rehabilitation across the country, but we should stop increasing speed in the wrong direction.”
The rejection of the scheme raises questions about the ongoing efforts to address the poor state of federal roads in the country.
