In a bid to dispel speculations, Minister of Works, David Umahi, has affirmed that President Bola Tinubu has no intentions to scrap the Tax Credit Scheme initiated by former President Muhammadu Buhari for road construction.
This declaration comes in the wake of assertions by the Chairman of the Federal Inland Revenue Service (FIRS), Zaccheus Adedeji, who deemed the scheme illegal during a recent appearance before the House of Representatives.
Umahi, following a meeting with Adedeji on Friday, clarified the government’s stance on the matter. Contrary to Adedeji’s disapproval of the scheme, Umahi emphasized Tinubu’s support for utilizing taxes from companies to finance road projects. He revealed plans for a joint presentation to the President, outlining strategies to address identified gaps in the scheme’s implementation.
According to a statement by Umahi’s Special Adviser on Media, Uchenna Orji, the Tax Credit Scheme, enshrined in Executive Order No. 007 of 2019, remains highly beneficial. Umahi outlined agreements reached during the meeting, including the continuation of ongoing NNPC road infrastructure projects with a budget of N2.59 trillion. However, it was clarified that this amount did not encompass the total project cost, with a funding gap of NN2.7 trillion identified.
Umahi disclosed plans to seek approval from the National Assembly to bridge this funding gap, underscoring the necessity of terminating non-performing contracts as part of the resolution. The collaborative efforts between Umahi and Adedeji signal a concerted approach to address concerns and optimize the Tax Credit Scheme for the benefit of road infrastructure development in Nigeria.
