Senate, FIRS fault Buhari’s N2.59trn road tax credit scheme

By Tunde Opalana

The Tax Credit Scheme introduced by the past administration of President Muhammad Buhari and continued by the Bola Tinubu administration for road construction has come under fire from the Senate and the chairman of the Federal Inland Revenue Service (FIRS), Mr. Zacheus Adedeji.

During an interactive session organised by the Senate Committee on Finance, both the Senate and FIRS chairman questioned the efficacy of the scheme, which saw a financial commitment of N2.59 trillion from the Nigerian National Petroleum Company Limited (NNPCL) over three years.

The scheme, initiated by the Buhari administration, aimed to address the poor state of federal roads across the country but faced scrutiny during the session chaired by Senator Sani Musa. While acknowledging its impact on road reconstruction, concerns were raised regarding its legality and financial burden on NNPCL.

FIRS chairman, Adedeji, emphasised that the scheme was unlawful and urged the government to discontinue it after its five-year tenure, highlighting the need to adhere to core mandates and proper financial management principles.

Senator Musa echoed these sentiments, citing constitutional provisions and the need to correct past mistakes. The committee awaits the outcome of a meeting involving NNPCL, FIRS, and the Ministry of Works before deciding on further action.

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In addition to criticism of the Tax Credit Scheme, NNPCL clarified its $3.3 billion loan facility secured for the Central Bank of Nigeria to stabilise the Naira in the foreign exchange market, indicating support for CBN’s efforts to manage forex volatility.

The outcome of the meeting among the agencies involved, will determine the future of the scheme, as stakeholders seek to address its shortcomings and ensure responsible financial practices in infrastructure development.