The Nigeria National Petroleum Corporation (NNPC) has presented a cheque of N621bn to the Federal Ministry of Works and Housing for the construction of critical road projects across the country.
The projects, which will be executed under the tax credit scheme is funded through the Federal Inland Revenue Service (FIRS) in accordance with President Muhammadu Buhari’s executive order 7.
Under the programme, the NNPC will construct a total of 1,804.6 kilometres of roads at a total cost of N621,237,143,897.35.
The constructions, shared across the geo-political zones including the North-Central, which recieved a greater chunk of N244.87bn for the construction of 791.1 kilometres of roads.
The South-South zone emerged as the second-highest beneficiary with the sum of N172.02bn for a total of 81.9 kilometres of road while the South-West got an allocation of N81.87bn for the construction of 252.7 kilometres of roads.
Meanwhile, N56.12bn was allocated to the North-East for the construction of 273.35 kilometres of roads under the scheme and N43.28bn to the South-East geo-political zone for the construction/rehabilitation of 122 kilometres of roads.
Further breakdown of the NNPC schedule showed that the North-West was allocated the sum of N23.05bn for the rehabilitation of 283.5 kilometres of road.
Speaking at the event, the Minister of Works and Housing, Babatunde Fashola while commending the effort of the NNPC urged companies to take advantage of the tax credit scheme to bridge the infrastructural gaps in the country.
According to him, “We are now seeing companies that are showing interest in the scheme, and we hope this will help in developing our infrastructure.
“With this presentation today, contractors will have the confidence to work, knowing that they will be paid,” he added.
He clarified that the NNPC was not taking over road projects but ‘putting forth its tax to be used for road construction’.
On his part, the Chairman of FIRS, Mohammed Manni said the investment is a result of Executive order 007 of 2019, which use companies tax to fix critical infrastructure.
The tax credit, according to him is issued after confirmation is done that monies that ordinarily should be invested are invested.
He said, “The importance of this scheme cannot be overemphasized because the budgetary allocation for the roads are not only minimal but also insufficient.
“Under the tax credit scheme, companies are allowed to invest in road construction, infrastructural projects in exchange of tax credit certificate we are issuing to them.
“The construction of these roads will ensure that goods are moved from a part of the country to another, as we bridge the infrastructural gap in the country.”
In his remark, the Chief Financial Officer of the NNPC, Umar Ajiya, explained that the condition of the road networks in the country is affecting the transportation of petroleum products across the country.
He noted that the credit scheme presents a good platform to support the rehabilitation of major infrastructural projects.
“The condition of our roads currently affect our business and the energy security of Nigeria.
“Most of our pipelines have been vandalised through the years and sometimes, we find it difficult for our tanker drivers to convey products across the country.
“So we consider the tax credit scheme a very important way to fund these projects, we are working on 21 roads and we are ready to fund the N621bn,” he said.
