In a significant development, the Federal Inland Revenue Service (FIRS) announced on Friday that President Bola Tinubu has given the green light for the continuation of the Tax Credit Scheme. This decision stems from a confidential meeting between the FIRS Executive Chairman, Zacch Adedeji, Minister of Works David Umahi, and Nigerian National Petroleum Company Limited (NNPCL) Chief Financial Officer Umar Ajiya. The meeting aimed to address the tax credit agreement established by the previous administration.
This announcement was conveyed in a statement released by FIRS on Friday. As per the statement, ongoing NNPCL road infrastructure projects will persist without expansion, while underperforming contracts will be promptly terminated and re-awarded.
The statement further reveals that a memo outlining the N2.73 trillion funding gap for road infrastructure projects will be submitted to President Bola Ahmed Tinubu. The funds are intended to be channeled through the National Assembly for approval. Additionally, the review process will determine contract rates, with possible termination for non-compliance.
It was emphasized by FIRS, NNPCL, and the Ministry of Works that fostering collaboration among agencies and organizations is crucial for achieving the respective mandates and aligning with the overarching goals of President Bola Ahmed Tinubu’s administration.
Notably, the Chairman of FIRS, Adedeji, previously voiced concerns about the scheme’s infringement of existing laws during his appearance before the House of Representatives. He underscored that companies should not directly utilize their taxes to fund construction projects. However, Minister Umahi confirmed after the meeting with the FIRS boss that President Tinubu has endorsed the scheme’s continuity.
