Senate Committee Backs N2.7 Trillion Tax Credit for Road Construction

The Senate Committee on Finance has decided to support the N2.7 trillion tax credit scheme required for road construction by the Ministry of Works.

The scheme, which was introduced under former President Muhammadu Buhari’s administration, aims to empower private companies to fund the construction or refurbishment of federal roads and recoup their investments through tax deductions.

The Federal Inland Revenue Service (FIRS) had initially opposed a N2.7 trillion request by the Ministry of Works through the Nigerian National Petroleum Company Limited (NNPCL) for funding road projects under the tax credit scheme.

Senator Sani Musa, the committee chairman, had also criticized the scheme, arguing that the funds being used for road construction should be remitted into the consolidated revenue fund of the federal government.

However, after listening to the Minister of Works, David Umahi, the Senate committee made a U-turn and backed the tax credit scheme.

Umahi stated that the scheme has helped the country to rehabilitate or reconstruct critical roads across the nation.

The N2.7 trillion was not a fresh request but rather a funding gap incurred as of January this year.

This development has sparked a renewed focus on the importance of public-private partnerships in infrastructure development and the need for efficient utilization of government funds.

As Nigeria continues to work on improving its road networks, the Senate committee’s decision to support the tax credit scheme could pave the way for further advancements in the country’s infrastructure.