The Federal Inland Revenue Service (FIRS) is set to collaborate with the Central Bank of Nigeria (CBN) and the Ministry of Works this Friday to reassess the approximately N2.59 trillion tax credit scheme designated for road repairs and construction nationwide. This initiative comes amidst scrutiny and strong disapproval from FIRS Chairman, Zacheus Adedeji, regarding the tax credit scheme initiated under the previous administration of President Muhammadu Buhari.
Adedeji voiced his concerns during an interrogation session with the Senate Committee on Finance, alongside Umoru Ajiya, the Chief Financial Officer of the Nigerian National Petroleum Company Limited (NNPCL), where the operations of the tax credit scheme were examined. Critiques were raised against the backdrop of NNPCL’s recent disclosure regarding a $3.3 billion loan secured through the CBN to bolster the Naira in the foreign exchange market.
NNPCL revealed that around N664 billion had been allocated towards road refurbishment across Nigeria’s six geopolitical zones. However, Adedeji argued that the tax credit scheme is “unlawful” and advocated for its termination, stressing that FIRS should focus solely on tax collection and remittance rather than funding road projects through executive orders.
Adedeji further criticized the operational mechanism of the tax credit initiative, suggesting that road contract assignments and payments should fall under the purview of the Ministry of Works. He announced an upcoming meeting among FIRS, CBN, and the Ministry of Works to evaluate the scheme’s progress and redirect efforts accordingly.
Senator Sani Musa (APC, Niger East), who led the inquiry, echoed Adedeji’s concerns, suggesting potential contradictions with the constitutional provisions regarding the consolidated revenue fund. The outcome of the forthcoming meeting holds significant importance, as it could influence future policies and correct past oversights.
“We are awaiting the outcome of the meeting of the three agencies involved in the scheme before deciding on how to assist the present government in rectifying past mistakes,” stated Senator Musa, emphasizing the importance of the forthcoming deliberations.
Credit: Nairametrics
