House to Investigate Buhari’s Tax Credit Scheme

Juliet Akoje in Abuja

The House of Representatives has resolved to investigate the Road Infrastructure Development and Refurbishment Investment Tax Credit scheme initiated by the former President Muhammadu Buhari.

The House also mandated its Committee on Works to determine the beneficiaries’ eligibility and selection process by examining the criteria used by the scheme’s management committee to select participating companies and determine if they align with the scheme’s objectives.

Consequently, the House directed its committee to ascertain the impact on Road Infrastructure Development through the evaluation of the impact of the scheme on road infrastructure development in Nigeria and identify the challenges and limitations faced by participating companies and recommend solutions as well as review the transparency and accountability mechanisms in place to ensure the scheme’s effectiveness.

These resolutions followed the adoption of a motion of Urgent Public Importance on the impacts of the scheme which was established through Executive Order No. 007 in 2019 moved by Hon. Ibrahim Aliyu at plenary yesterday.

Aliyu while presenting the motion underscored the need to ensure accountability of public funds, queried the effectiveness of the scheme.

The lawmaker  stated that the tax scheme was established by Executive Order No. 007 in 2019, recalling that the federal government then stated that Nigeria needed N348 trillion over 10 years to bridge the nation’s infrastructure gap.

“This Tax Credit Scheme, is meant to encourage private sector participation in road infrastructure development Nigeria. It allows companies to recover costs incurred in constructing or refurbishing eligible roads as tax credits against their future Companies Income Tax (CIT) liability,” he said.

He further noted that five years after its inception, the scheme’s effectiveness which hinges on the viability and cost efficiency of projects undertaken was yet to be ascertained.

“The selection process and onboarding of beneficiary companies by the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme Management Committee lacks transparency and clear eligibility criteria”

“There is limited information on the project evaluation and approval process. The tax credit utilization may not align with the scheme’s objectives and therefore not achieving its intended impact on our Nation’s road infrastructure,” he said.