David Umahi Counters FIRS Chair, Backs Continuation of Road Tax Scheme

The Minister of Works, David Umahi, on Friday countered the remarks made by the Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, voicing his support for the controversial N2.59 trillion Road Infrastructure Tax Credit Scheme introduced by the Muhammadu Buhari administration.

During a meeting in his office in Abuja, Umahi, along with Adedeji and the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC), Mele Kyari (represented by the company’s Chief Financial Officer, Umar Ajiya), agreed to prepare a joint memo to President Bola Tinubu, in efforts to salvage the scheme and to suggest ways to make it more efficient.

One of the suggestions was that the process would now be channeled through the National Assembly for approval.

Last Wednesday, Adedeji had criticized the three-year-old scheme during his appearance before the Senate Committee on Finance, along with NNPC’s Ajiya.

The Senator Sani Musa-led committee had invited the two officials to shed light on the implementation of the scheme despite the poor state of federal roads across the country.

While the NNPC said N664 billion had been spent so far, the FIRS boss hinted that the scheme was unlawful and should be discontinued.

However, Umahi restated the commitment of the federal government to the implementation of the scheme.

He emphasized that President Tinubu has not only said that the implementation of the tax credit scheme should continue, including private, NNPC, and NLNG projects, but has also approved the review of the projects under the scheme due to inflation.

Their agreement included the continuation of all NNPC projects on road infrastructure as started, without expansion, to the tune of N2.59 trillion.

The minister noted that some of the challenges were discussed, such as the problem of methodology for program implementation, and they resolved to adopt a more robust approach to solve the problem.

He also said that part of their resolutions was that non-performing contracts will be terminated.

The Works Minister expressed happiness that the NNPC project will be completed and that an agreement had been reached that it will not be expanded beyond the last seven projects initiated by the last administration.