Tinubu Supports Tax Credit Scheme for Road Infrastructure Development: Umahi Clarifies

The Minister of Works, Sen. David Umahi, has clarified that President Bola Ahmed Tinubu supports the use of taxes from companies to fund road infrastructure development under the Road Infrastructure Development and Refurbishment Investment Tax Credit (Tax Credit) Scheme.

This statement comes after the Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, raised concerns about the scheme’s compliance with the country’s laws.

The Tax Credit Scheme, which has enabled the country to fix important roads across the nation, was established through Executive Order No. 007 of 2019.

Umahi emphasized that the scheme is highly beneficial and that the implementation framework is in line with the Executive Order.

During a meeting with the Chairman of FIRS, both parties agreed to continue the scheme and not expand it further, with the funding gap for the NNPC projects on road infrastructure estimated at N2.7 trillion.

They have decided to submit a joint memo to President Tinubu to seek approval from the National Assembly for the funding gap.

Additionally, the Minister of Works and the Chairman of FIRS discussed the challenges they faced with the Tax Credit Scheme, such as the methodology for program implementation.

They have decided to adopt a more robust approach to address these issues.

The clarification by Umahi on President Tinubu’s stance on the Tax Credit Scheme for road infrastructure development has put to rest any concerns about the scheme’s future.

The government remains committed to the program and is working towards finding a more effective way to implement it.