In a recent development, Zaccheus Adedeji, the Chairman of the Federal Inland Revenue Service (FIRS), has called upon President Bola Tinubu to halt the implementation of the N2.59 trillion Tax Credit Scheme initiated by the previous administration of President Muhammadu Buhari in 2021.
Adedeji expressed his concerns regarding the scheme during his appearance before the Senate Committee on Finance on Wednesday. He labeled the scheme, designed for nationwide road construction, as a misstep.
The Tax Credit Scheme was introduced through Executive Order 7 of 2021 under the leadership of former President Buhari. However, Adedeji criticized the legality of the scheme and deemed it a deviation from the right course.
The Senate Committee, chaired by Senator Sani Musa, summoned both the FIRS and the Nigerian National Petroleum Company Limited (NNPCL) management to provide clarity on the scheme’s implementation, especially concerning the deteriorating condition of federal roads across the country.
Accompanied by Umoru Ajiya, the Chief Financial Officer of NNPCL, Adedeji strongly opposed the scheme and urged the federal government to terminate it. He argued that neither the FIRS nor NNPCL should be responsible for paying contractors.
Adedeji emphasized that the primary role of FIRS is to assess, collect taxes, and remit them to the federation account, rather than appropriating funds for other purposes through executive orders. He suggested that the Ministry of Works should handle road contracts and their payments, aligning with its core mandate.
To rectify the situation, Adedeji disclosed plans for FIRS and the Central Bank of Nigeria (CBN) to convene a meeting with the Ministry of Works. The aim is to evaluate the scheme’s progress and realign it with proper procedures.
Adedeji stated, “We should not continue on the wrong trajectory. As a way of stopping the wrong approach, FIRS and the Central Bank of Nigeria are holding a meeting with the Ministry of Works this Friday. At the meeting, we are going to take stock of what had been done through the scheme and thereafter, we will toe the right path.”
The call to discontinue the Tax Credit Scheme highlights the ongoing discussions and concerns surrounding infrastructure development and fiscal management in Nigeria.
