•Buys argument of Min of Works for fresh N2.7trillion
•As Minister seeks for N4.4trillion appropriation for Road Infrastructure
By Musa Baba Adamu
The Senate through its committee on Finance , dumped stay of action position proposed to it by the Federal Inland Revenue Service ( FIRS) on N2.7trillion Tax Credit Fund required for specific road construction by the Federal Ministry of Works.
The Chairman of FIRS , Zacch Adedeji , had at an interface with the Committee penultimate week , kicked against fresh N2.7trillion requested for by the Ministry of Works through the Nigerian National Petroleum Company Limited ( NNPCL) for funding of of roads projects under the Tax Credit Scheme .
But the Minister of Works , Senator David Umahi in a counter argument made before the Committee on Thursday , said the N2.7trillion was not a fresh request but funding gap incurred as at January this year .
He explained to the committee that the Tax Credit Scheme , has helped the Nation to get some critical roads across the country , rehabilitated or reconstructed within the last three years .
“ Tax Credit simply means front loading of taxes of the affected agencies involved and using it for infrastructure development .
‘ A very good example of it , was the Apapa – Oshodi Road , reconstructed by Dangote Plc under the scheme which not only solved the problem of congestion on the road but provided solid road that can last 50 years life span .
It is the same road infrastructure solution the N2.59trillion Tax Credits being offered through NNPCL is offering but not well funded yet .
“ Only N650billion has been released through two batches for funding execution of the affected roads under the scheme ., making the N2.7trillion funding gap very necessary . We need the fund for completion of roads already started under the scheme”, he said .
He added that aside the scheme, the Ministry based on provisions made in the 2024 budget , has no concrete appropriations for road construction .
“ 2024 budgetary provisions for the Federal Ministry of works which are slightly above a trillion Naira , are palliatives for road construction , the reason why the National Assembly should make substantial appropriation for road infrastructure across the country .
“ In doing that , at least N4.4trillion , should be appropriated for 100kilometres road construction per each of the six geo – political zones “, he added.
In his remarks, the Chairman of the Committee, Senator Sani Musa ( APC Niger East) , said “Tax Credit Policy is a welcome initiative meant for exigencies being addressed and based on submissions made by the Minister , the N2.7trillion , should be released for completion of Ongoing projects under the scheme.”
He however added that fresh implementation of the policy outside the N2.7trillion , should be halted for now .
