- Minister David Umahi clarified President Tinubu’s support for using company taxes to finance road infrastructure via the Tax Credit Scheme
- Umahi affirmed agreements with FIRS boss to address funding gaps for ongoing projects and improve implementation methodologies
Minister of Works, Sen. David Umahi, clarified that President Bola Ahmed Tinubu favours using company taxes to finance road infrastructure projects. Umahi emphasized that the Road Infrastructure Development and Refurbishment Investment Tax Credit (Tax Credit) Scheme has facilitated the repair of crucial roads nationwide.
This statement comes in response to Zacch Adedeji, Chairman of the Federal Inland Revenue Service (FIRS), who previously voiced concerns about the scheme’s legality before the House of Representatives. Adedeji contended that companies should not directly fund construction with their taxes, citing existing laws.
Following a meeting with the FIRS boss, Umahi affirmed that President Tinubu endorsed the continuation of the scheme. He dismissed media reports suggesting otherwise and reaffirmed the significant benefits of the Tax Credit Scheme, highlighting its framework outlined in Executive Order No. 007 of 2019.
Umahi disclosed that agreements were reached regarding ongoing projects funded by the Nigerian National Petroleum Corporation (NNPC), emphasizing the need to address a funding gap of N2.7 trillion. Plans were made to approach the President and the National Assembly jointly for approval and funding allocation.
Expressing gratitude for FIRS’s commitment, Umahi acknowledged the challenges discussed during the meeting, including implementation methodologies and non-performing contracts. He emphasized the resolve to adopt a more robust approach to problem-solving, including terminating underperforming contracts.
Umahi’s remarks underscore the collaborative efforts between government agencies and the private sector to address infrastructure challenges and stimulate economic development.