The Senate Committee on Finance dismisses FIRS concerns, approves fresh N2.7 trillion urged by Ministry of Works for road infrastructure as Minister pushes for N4.4 trillion appropriation.
The Senate Committee on Finance has decided to disregard the concerns raised by the Federal Inland Revenue Service (FIRS) regarding the N2.7 trillion Tax Credit Fund requested by the Federal Ministry of Works for specific road construction projects.
The Chairman of FIRS, Zacch Adedeji, opposed the fresh N2.7 trillion requested by the Ministry of Works through the Nigerian National Petroleum Company Limited (NNPCL) to fund road projects under the Tax Credit Scheme.
In a recent meeting with the Committee, the Minister of Works, Senator David Umahi, presented a counter argument, clarifying that the N2.7 trillion is not a new request but rather a funding gap accumulated as of January this year.
He highlighted the significance of the Tax Credit Scheme in facilitating critical road rehabilitations and reconstructions across the nation over the past three years.
Senator Umahi elaborated on the Tax Credit Scheme, which entails the upfront payment of taxes by involved agencies to support infrastructure development.
He cited the successful reconstruction of the Apapa-Oshodi Road by Dangote Plc under the scheme as a notable example.
Emphasising the necessity of the N2.7 trillion funding gap for ongoing road projects, he revealed that only N650 billion has been disbursed for executing affected roads, underscoring the need for additional funds to complete ongoing projects.
He further highlighted the inadequacy of the 2024 budgetary provisions for road construction by the Federal Ministry of Works, stressing the need for substantial appropriations.
Senator Umahi proposed a budget allocation of N4.4 trillion for the construction of 100 kilometres of roads per each of the six geopolitical zones, urging the National Assembly to prioritise road infrastructure funding.
In response, Senator Sani Musa, the Committee Chairman, expressed support for the Tax Credit Policy as a necessary measure to address infrastructure exigencies.
He endorsed the release of the N2.7 trillion for the completion of ongoing projects under the scheme while advocating for a temporary halt on fresh policy implementations beyond the allocated funds.
