The Nigerian National Petroleum Company (NNPC) Limited says it will invest the sum of N1.9 trillion in the second phase of the tax credit scheme for infrastructure development.
This was disclosed by Group Managing Director, NNPC, Mr Mele Kyari, who was represented by Mr Umar Ajiya, at a meeting with the Minister of Works and Housing, Mr Babatunde Fashola, in Abuja on Tuesday.
The Road Infrastructure Tax Credit Scheme enables companies with high tax profiles to construct roads in a negotiated agreement with the federal government to provide the infrastructure instead of taxes.
Second Phase: Kyari noted that as phase 1 of the scheme rolls out, the NNPC is committed to investing N1.9 trillion for the second phase, he said:
- “Clearly as you recall we have done phase 1 and funding has been steady, we are now committed to a second phase of N1.9 trillion and we are also committed to setting aside funds to fund the contractors including any necessary mobilisation that could be required.
- “What is important for us is that our consultants will have to validate the value for money and the quality of work that you’ve done on these roads.”
Good quality: He added that NNPC wants to maintain good quality standards of roads under the second phase.
- “I think that our road users alluded to the fact that they have seen extensive quality work being done on the roads that have been assigned during phase 1.
- “We want the same quality to be maintained because of the execution of the roads under phase 2, and speaking of execution is very important because the funds are available and therefore there should be no excuse.”
Meanwhile, the Executive Chairman of the Federal Inland Revenue Service (FIRS), Mr Muhammed Nami, said the FG has existing and future tax capabilities based on the estimate received by the FIRS that will be able to provide Nigerians with enough funds as payments are due and confirmed, he added:
- “The gains of phase 1 have been evaluated, some of the roads that we were speeding through were roads constructed over 40 years ago and to God be the glory through these executive orders they are now being fixed.
- “There are generally benefits for paying taxes because global civilisation is made possible through the taxes being paid.
- “We continue to appeal to Nigerians and particularly the big taxpayers to continue to trust this executive 007 so that they will continue to provide critical infrastructure that our country so dearly needed for our people to move goods and products from one location.”
What you should know: Recall that in October 2021, the Federal Government approved the reconstruction of the collapsed Lagos-Badagry expressway and 20 other federal roads by the newly incorporated Nigerian National Petroleum Corporation (NNPC) Limited.
- The Minister of Works and Housing, Babatunde Fashola, who made the announcement, said the approval which was given at the Federal Executive Council (FEC) meeting, would see NNPC take over the reconstruction of 1,804.6 kilometres-long 21 federal roads in critical conditions across the 6 geopolitical zones of the country at a whopping sum of N621.2 billion.
- The reconstruction of these roads would be executed via a strategic intervention under the Federal Government Road Infrastructure and Refreshment Tax Credit Scheme with 9 of the selected projects in North-central, 3 in North-east, 2 in North-west, 2 in South-east, 3 in South-south, and 2 in South-west.
- The Nigerian National Petroleum Company (NNPC) Limited last year pledged to provide an additional N1 trillion for road projects across Nigeria under the Federal Government’s road infrastructure and refreshment tax credit scheme.