Nami: Road infrastructure tax credit scheme, one of the greatest innovation of federal government

The Nigerian National Petroleum Company Limited (NNPC) is currently handling the reconstruction of several roads totaling 1, 824 kilometers, across the country.

The projects are being carried out under the Road Infrastructure Tax Credit Scheme, according to the Executive Chairman of the Federal Inland Revenue Service (FIRS), Muhammad Nami.

Mr. Nami made the revelation while making a presentation at the Senate Stakeholder and Public Hearing on the 2023 Medium-Term Expenditure Framework (MTEF) and Fiscal Paper, in Abuja, yesterday.

He described the scheme as one of the greatest innovations of the federal government in its resolve to tackle Nigeria’s infrastructure deficit.

The scheme provides for public-private partnership intervention in the construction, refurbishment and maintenance of critical road infrastructure in the country with participants being entitled to Tax Credits against their future Companies Income Tax

Mr. Johannes Wojuola, Special Assistant (Media & Communication) to the FIRS Chairman, quoted him as saying, “I think one of the greatest innovations of the government of the day is the Executive Order 007, which was signed into law in 2019.

“I want to speak to the one we are handling jointly with the NNPC. The NNPC through its subsidiary for instance is investing in about 1,824 kilometers of roads across the 6 geopolitical zones in Nigeria.

“Some of these roads had been constructed as far back as 1976. I could remember when I was still rounding up my primary school education, the road that leads Suleja to Lapai-Agaie-Bida was constructed by a company called DTV. I am not aware of any significant work done on that road 40 years later, until now when the NNPC is using Executive Order 007 to reconstruct the road.

“The challenge of road construction in Nigeria has always been funding. Yes, there are contracts for the construction of roads, but funding these constructions is the challenge.”

Let’s harmonise tax system.