The Senate has issued a directive for the full release of the N2.7tn Tax Credit Fund to expedite the completion of ongoing road projects nationwide.
Senator Sani Musa, the Chairman of the Senate Committee on Finance representing APC Niger East, disclosed this during a session where Senator David Umahi, the Minister of Works, appeared before the committee.
Musa emphasized the importance of utilizing the Tax Credit Policy to address pressing needs, stating that the entire N2.7tn should be made available for the continuation of ongoing projects under the scheme.
He also suggested halting any new implementations of the policy outside the allocated N2.7tn for the time being.
A portion of the N2.7tn had previously been disbursed by the Nigerian National Petroleum Company Limited (NNPCL) for road construction projects. Additionally, there have been reports of President Bola Tinubu instructing the termination of underperforming road rehabilitation contracts within the N2.7tn tax credit initiative.
During an earlier engagement with the committee, Zacch Adedeji, the Chairman of the Federal Inland Revenue Service, expressed reservations about the N2.7tn requested by the Ministry of Works through NNPCL to fund road projects under the Tax Credit Scheme.
However, Minister Umahi clarified to the committee that the N2.7tn was not a new request but rather a funding gap incurred as of January of the current year.
Umahi elaborated on the benefits of the Tax Credit Scheme, noting its contribution to rehabilitating or reconstructing critical roads across the country over the past three years.
He cited the example of the Apapa-Oshodi road, reconstructed by Dangote Plc under the scheme, which alleviated congestion issues and provided a durable road infrastructure.
Umahi underscored the necessity of bridging the funding gap to complete roads already initiated under the scheme, as only a fraction of the allocated funds had been disbursed so far.
He also highlighted the limited budgetary provisions in the 2024 budget for road construction, emphasizing the need for substantial appropriations from the National Assembly to address road infrastructure needs nationwide. Umahi proposed allocating at least N4.4tn for the construction of 100 kilometers of roads per each of the six geopolitical zones.
