FIRS Punctures N2.59trillion Tax Credit Scheme on Road Construction

…As NNPC clears air on $3.3billion loan secured for CBN

From Lateef Taiwo

The Chairman of Federal Inland Revenue Service ( FIRS) , Zacheus Adedeji on Wednesday in Abuja , punctured the three year old N2.59trillion Tax Credit Scheme introduced by former President Muhammadu Buhari administration for road construction across the country.

This is as one of the critical executors of the Tax Credit Scheme , the Nigerian National Petroleum Company Limited ( NNPCL) , cleared air on $3.3billion loan facility secured for the Central Bank of Nigeria ( CBN) for stabilization of Naira in the foreign exchange market.

Indifference of the FIRS Chairman to N2.59trillion Tax Credit Scheme introduced through Executive Order 7 of 2021 by Muhammadu Buhari led government , came to the fore during his appearance before the Senate Committee on Finance along with the Chief Finanancial Officer of NNPCL, Umoru Ajiya .

The Senator Sani Musa led Committee had invited the duo , to shed light on implementation of the scheme vis – a vis , the poor state of Federal Roads across the country.

While the NNPCL Chief Financial Officer , raised the hope of the committee members that the schene is helping for refixing of delapidated roads across the six geo political zones in the country with N664billion spent so far , the FIRS boss , said the scheme was unlawful and should be discontinued .

” The Mandate of FIRS lumped with execution of Tax Credit Schene for road construction , is to access , collect tax and remit it into the federation account and not to appropriate it for any purose through executive order .

” It is not the duty of FIRS and NNPCL to be paying contractors . The Ministry of Works should be in line with its core mandate , allow to award road contracts and pay for them.

” The scheme to so people serves as faster way for road reconstruction or rehabilitation across the country , but we should stop increasing speed toeards wrong direction .

” As a way of stopping the wrong approach, FIRS and CBN are holding meeting with the Ministry of Works Friday this week, where stock would be taken of what have done done through the scheme and thereafter , toe the right path .

” We should in a nutshell, not continue in the wrong trajectory “, he said .

Impressed by his submission, the Chairnan of the Committee , Senator Sani Musa , said relevant provisions of the 1999 constitution( as amended ) , are against the scheme , because monies NNPC and FIRS are being made to spend on the roads through tax credit , supposed to be remitted into consolidated revenue fund .

” We are waiting for outcome of meeting of the three agencies involved in the scheme , before deciding on how to help the present government to correct mistakes of the past ‘, he said.

On the $3.3billion loan facility , NNPCL informed the Committee members that it was secured to support CBN to suppress FOREX Volatility .

It said $2.2billion had already been secured for the apex bank while the balance of $1.05billion , would be credited the apex bank before the end of the month .


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