FIRS picks holes in N2.59trillion Tax Credit Scheme on Road Construction

***As NNPC struggles to explain $3.3billion loan secured for CBN

The Chairman of Federal Inland Revenue Service (FIRS), Zacheus Adedeji picked holes in the three year old N2.59trillion Tax Credit Scheme introduced by former President Muhammadu Buhari administration for road construction across the country.

This is coming as one of the critical executors of the Tax Credit Scheme, the Nigerian National Petroleum Company Limited (NNPCL), tried to judtify the $3.3billion loan facility secured for the Central Bank of Nigeria (CBN) for stabilization of Naira in the foreign exchange market.

The FIRS Chairman indifference to the N2.59trillion Tax Credit Scheme introduced through Executive Order 7 of 2021 by Muhammadu Buhari led government, came to the fore during his appearance before the Senate Committee on Finance along with the Chief Finanancial Officer of NNPCL, Umoru Ajiya

Apparently piqued by the poor state of Federal Roads across the country despite the N2.59trillion Tax Credit, The Senator Sani Musa led Committee had invited the duo, to shed more light on the implementation of the scheme.

While the NNPCL Chief Financial Officer, raised the hope of the committee members that the schene is realy helping to refixing delapidated roads across the six geo political zones in the country with N664billion spent so far, the FIRS boss, said the scheme was unlawful and should be discontinued.

He said,
“The Mandate of FIRS lumped with 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, allow to award road contracts and pay for them.

“The scheme to some people 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 meeting with the Ministry of Works on Friday this week, where stock would be taken of what have done done through the scheme and thereafter toe the right path .

“We should in a nutshell, not continue in the wrong trajectory “, he said .

Impressed by his submission, the Chairman of the Committee , Senator Sani Musa, said relevant provisions of the 1999 constitution(as amended) are against the scheme, because monies NNPC and FIRS are being made to spend on the roads through tax credit were meant to be remitted into consolidated revenue fund .

“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 ‘, he said.

On the $3.3billion loan facility , NNPCL informed the Committee members that it was secured to support CBN to suppress FOREX Volatility

It said $2.2billion had already been secured for the apex bank while the balance of $1.05billion , would be credited the apex bank before the end of the month .