The Federal Inland Revenue Service (FIRS) is set to convene with the Central Bank of Nigeria (CBN) and the Ministry of Works this Friday to scrutinize the N2.59 trillion tax credit scheme designated for road repairs and construction nationwide.
Expressing dissatisfaction with the scheme initiated during the tenure of former President Muhammadu Buhari, Zacheus Adedeji, the Chairman of FIRS, denounced the initiative.
He emphasized the need for a thorough review of the scheme, aimed at enhancing its effectiveness and aligning it with legal frameworks.
The critique follows revelations by the Nigerian National Petroleum Company Limited (NNPCL) regarding its utilization of a $3.3 billion loan obtained through the CBN to stabilize the Naira in the foreign exchange market.
Umoru Ajiya, NNPCL’s Chief Financial Officer, disclosed during a session with the Senate Committee on Finance that approximately N664 billion had been allocated to road refurbishment across the country’s six geopolitical zones.
However, Adedeji contested the legitimacy of the tax credit scheme, asserting its unlawfulness and advocating for its discontinuation.
He argued that the FIRS should focus solely on tax collection and remittance, rather than funding infrastructure projects through executive orders.
Furthermore, Adedeji criticized the operational framework of the scheme, suggesting that road contract awards and payments should be the responsibility of the Ministry of Works.
He announced an upcoming meeting between FIRS, CBN, and the Ministry of Works to reassess the scheme’s progress and realign efforts accordingly.
In his statement, Adedeji emphasized, “The Mandate of FIRS lumped with the execution of Tax Credit Scheme for road construction is to access, collect tax and remit it into the federation account and not to appropriate it for any purpose 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 to award road contracts and pay for them. “The scheme serves as a faster way for road reconstruction or rehabilitation across the country but we should stop increasing speed towards the wrong direction.
“As a way of stopping the wrong approach, FIRS and CBN are holding a meeting with the Ministry of Works on Friday this week, where stock would be taken of what has been done through the scheme and thereafter to the right path. “We should in a nutshell, not continue on the wrong trajectory.”
Senator Musa, echoing Adedeji’s sentiments, raised concerns regarding the potential infringement of the constitution’s stipulations on the consolidated revenue fund.
He highlighted the significance of the forthcoming meeting among the three agencies in rectifying past errors and shaping future policies.
Senator Musa remarked, “We are waiting for the outcome of the meeting of the three agencies involved in the scheme, before deciding on how to help the present government to correct mistakes of the past.”
