Senate dumps FIRS on Tax Credit Scheme

Ignatius Okorocha, Abuja
The Senate committee on Finance on Thursday rejected stay of action position proposed to it by the Federal Inland Revenue Service ( FIRS) on N2.7trillion Tax Credit Fund required for specific road construction by the Federal Ministry of Works.

Recall that Chairman of FIRS , Zacch Adedeji , had at an interface with the Committee penultimate week , kicked against fresh N2.7trillion requested for by the Ministry of Works through the Nigerian National Petroleum Company Limited ( NNPCL) for funding of of roads projects under the Tax Credit Scheme .

However, the Minister of Works , Senator David Umahi in a counter argument made before the Committee yesterday said the N2.7trillion was not a fresh request but funding gap incurred as at January this year .

He explained to the committee that the Tax Credit Scheme , has helped the Nation to get some critical roads across the country , rehabilitated or reconstructed within the last three years .

” Tax Credit simply means front loading of taxes of the affected agencies involved and using it for infrastructure development .

‘ A very good example of it , was the Apapa – Oshodi Road , reconstructed by Dangote Plc under the scheme which not only solved the problem of congestion on the road but provided solid road that can last 50 years life span .

It is the same road infrastructure solution the N2.59trillion Tax Credits being offered through NNPCL is offering but not well funded yet .

” Only N650billion has been released through two batches for funding execution of the affected roads under the scheme ., making the N2.7trillion funding gap very necessary . We need the fund for completion of roads already started under the scheme”, he said .

He added that aside the scheme, the Ministry based on provisions made in the 2024 budget , has no concrete appropriations for road construction .

” 2024 budgetary provisions for the Federal Ministry of works which are slightly above a trillion Naira , are palliatives for road construction , the reason why the National Assembly should make substantial appropriation for road infrastructure across the country .

” In doing that , at least N4.4trillion , should be appropriated for 100kilometres road construction per each of the six geo – political zones “, he added.

In his remarks, the Chairman of the Committee, Senator Sani Musa ( APC Niger East) , said “Tax Credit Policy is a welcome initiative meant for exigencies being addressed and based on submissions made by the Minister , the N2.7trillion , should be released for completion of Ongoing projects under the scheme.”

He however added that fresh implementation of the policy outside the N2.7trillion , should be halted for now .
However, The Senate on Thursday confirmed the Governor of the Central Bank of Nigeria (CBN), Mr Olayemi Cardoso, as the Chairman of the Monetary Policy Committee (MPC) of the apex bank.
The upper legislative chamber also confirmed the appointment of four deputy governors of the CBN and seven others as members of the MPC.
The Senate confirmed the 12 nominees after considering the report of the Committee on Banking, Insurance and other Financial Institutions presented by the Chairman, Sen. Adetokunbo Abiru, during plenary on Wednesday.
The News Agency of Nigeria (NAN) reports that President Bola Tinubu, had in a letter read on the floor of the Senate on Feb. 14, sought the confirmation of the nominees, ahead of the MPC meeting next week.
The request was then referred to the committee for action.
NAN reports that the deputy governors of CBN confirmed as members of the MPC include Mohammed Abdullahi, Bala Bello, Emem Usoro, and Philip Ikeazor.
Others members are Lamido Yuguda, Director-General, Securities and Exchange Commission (SEC), Lydia Shehu, Permanent Secretary, Federal Ministry of Finance, Murtala Sagagi, Aloysius Ordu, Pauline Odinkemelu, Mustapha Akinwumi, and Bandele Amoo.
Abiru, while presenting the report gave assurance that the chairman and members had the requisite knowledge and experience for the crucial task ahead of them.
He informed the Senate that the committee screened six of the 12 nominees on Wednesday, Feb. 21.
He, however, said that the Senate did not screen the CBN governor, deputy governors and the permanent secretary of the finance ministry because they were recently screened for their current positions.
The lawmaker added that the committee required the curriculum vitae, security clearance and other necessary documents from the nominees and found them qualified for the various positions.
“All nominees are experienced in economics and financial services. Their appointment is in accordance with the provisions of the CBN Act 2007 and we did not receive any petition against them,” he said.
Contributing to the report, Deputy Senate President Jibrin Barau said that the nominees had the expertise to execute the task ahead of them.
However, Sen. Osita Izunaso (APC-Imo) noted the task ahead of the nominees, adding that Nigerians were looking up to them to salvage the current economic crisis in country.
In his remarks, President of the Senate, Godswill Akpabio, commended President Tinubu for selecting men and women of great expertise that would help Nigeria with policies to turn around the CBN and redirect the monetary policies of the federation for the good of all Nigerians.
“I urge the MPC to use their expertise to redirect the monetary policies including even the contributions to the fiscal policies to ensure that Nigerians get out of the current economic quagmire.”
NAN reports that the MPC is the highest policy making committee of the apex bank with the mandate to review economic and financial conditions in the economy, determine appropriate stance of policy in the short to medium term. (NAN)