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Road infrastructure tax credit scheme, one of greatest innovations of FG – Nami
The Road Infrastructure Tax Credit Scheme has been described by the Executive Chairman of the Federal Inland Revenue Service (FIRS), Muhammad Nami as one of the greatest innovations of the Federal government in its resolve to tackle Nigeria’s infrastructure deficit.
The scheme which provides for public-private partnership intervention in the construction, refurbishment and maintenance of critical road infrastructure in the country with participants being entitled to Tax Credits against their future Companies Income Tax was the subject of debate at the Senate Stakeholder and Public Hearing on the 2023 Medium-Term Expenditure Framework (MTEF) and Fiscal Paper, which held yesterday at the Senate Chambers.
“I think one of the greatest innovations of the government of the day is the Executive Order 007, which was signed into law in 2019,” Mr. Nami said. “I want to speak to the one we are handling jointly with the NNPC. The NNPC through its subsidiary for instance is investing in about 1,824 kilometres of roads across the 6 geopolitical zones in Nigeria.
“Some of these roads had been constructed as far back as 1976. I could remember when I was still rounding up my primary school education, the road that leads Suleja to Lapai-Agaie-Bida was constructed by a company called DTV. I am not aware of any significant work done on that road 40 years later, only until now when the NNPC is using Executive Order 007 to reconstruct the road.
“I can report authoritatively to the Chairman and members of this committee that from December 2021 to July this year, the contractor has completed the reconstruction of well over 50 percent of that road.
“The challenge of road construction in Nigeria has always been funding. Yes, there are contracts for the construction of roads, but funding these constructions is the challenge.
“The road leading from Suleja to Minna for instance was awarded some 11 years ago to a company for over N20 billion. Ironically, annual budgetary provision in our National Budget every year stands between N150 million to N200 million per annum. If we are to complete that road, going by the annual budgetary provisions it would take an average of 35 to 40 years before we finish it.
“I can confirm to the Chairman that with Executive Order 007, NNPC is now providing funds and in the next two to three years that road will be completed. This is an important innovation of the government and I would plead with this distinguished Committee of the National Assembly to support the government on it,” Mr. Nami noted.
Supporting the position of the FIRS Executive Chairman, the Minister of Finance, Budget and National Planning, Hajia Zainab Shamsuna Ahmed explained further that the tax credit was only provided to the beneficiaries after completion of the construction work, and not before.
She noted that several companies had indicated interest in carrying out construction and rehabilitation of roads under the scheme across the country, adding that while some of these companies had commenced work, others were yet to as they were still finalising on some of the documentation requirements such as Bill of Quantities.
On the issue of revenue challenges being faced by the country, Mr. Muhammad Nami noted that a major cause of tax revenue loses for the country is the issue of having “fragmented tax systems and agencies.”
“In Nigeria we have 774 Local Governments, each of them have a tax authority; each of the 36 States, too, have revenue authorities with their respective mandates; then we have the FIRS and Customs. What I would advise for efficiency and to do things in line with global best practices, is that we should amend our tax laws to harmonise the tax agencies and tax system.
“With this, when the FIRS, for instance visits ‘Company A,’ it can serve one assessment on the company, and also on the individual that owns the Company; it can also ask the company to account for the VAT it has collected, and ask for PAYE it has deducted from its employees as well as the Personal Income Tax of the Promoters of the Company.
“This is currently not the case, and as such has created a huge gap in our tax system.”
The Senate Finance Committee, led by Senator Solomon Adeola charged the Federal Government through the Ministry of Finance and members of the government’s economic team to explore novel strategies that would shore up revenue for the Federal Government, including restructuring the remitting formula for Government Owned Enterprises (GOEs).
The Committee urged the Federal Government to consider a situation where Government Owned Enterprises (GOEs) remit 100% of their revenue to the government, while being funded by a determined percentage of Cost of Collection as is the case with the FIRS and Customs.
Arguing for this, the Committee opposed the current situation where some government agencies were retaining hundred percent of their revenue, spending from it, and paying government operating surplus.
The Committee recommended that these GOEs should keep only 5 to 15 percent as their cost of collection from the revenue generated to cater for their salaries, operational expenses and capital expenditure as is currently done by the Nigerian Customs and FIRS, while remitting the difference of 85 to 95 percent of their gross earnings as against the current practice of operating surplus where they spend between 70 and 90 percent of their gross earnings.
The Committee noted that this also has the capacity to make them put in more effort to improve their revenue when compared to the FIRS and Customs.
The Committee further urged the Federal Government to apply the same logic to the running of government owned universities by providing funding for only research and infrastructure needs through the Education Tax already being administered by the FIRS, while allowing the Vice Chancellors to use the revenue from school fees and other innovative revenue sources to run the Universities.
Member representing Obio/Akpor Federal Constituency in the House of Representatives and Minority Leader of the House, Honourable Kingsley Chinda said, the Tax Reform Bills would serve the interest of citizens of Nigeria.
He spoke in defence of the passage of the recent tax reform bill, describing it as a product of diligent legislative work aimed at serving Nigerians’ interests.
Speaking to journalists at the National Assembly on Wednesday, Hon. Chinda emphasized that effective opposition does not require public confrontations but strategic engagement. He noted that the tax reform bill, initially flawed, was subjected to thorough scrutiny and stakeholder consultations before passage.
“We saw that the bill was not good enough for Nigerians, so we pushed for reforms,” Chinda stated. “We engaged the National Assembly leadership, consulted governors, state parliaments, and civil society groups to ensure the final version better served the people.”
While acknowledging that no law is perfect, he maintained that the revised bill represents significant progress, balancing public interest and economic needs.
On the PDP’s internal crisis, Chinda expressed disappointment over conflicting interpretations of the Supreme Court’s judgment affirming Senator Samuel Anyanwu as the party’s national secretary. He dismissed claims by some members still recognizing Chief Ndubuisi Okoye, describing such actions as misleading.
“The Supreme Court’s ruling was clear—Anyanwu was never lawfully removed and remains our national secretary,” Chinda said. He criticized the party’s National Organizing Secretary for causing confusion and urged members to seek clarification from the Peoples Democratic Party’s legal adviser instead of spreading misinformation.
Chinda, who is a leading opposition voice in the House, called for unity, cautioning against public disputes that damage the party’s image. “We must avoid washing our dirty linen in public. The judgment is final, and we should focus on strengthening the party ahead of future elections,” he advised.
Despite the Peoples Democratic Party’s challenges, Chinda expressed optimism about the party’s resurgence after its upcoming congresses and national convention. He urged members to prioritize Nigeria’s interests over personal ambitions, emphasizing that internal disagreements would not diminish the PDP’s role as a viable opposition.
On concerns about Nigeria drifting toward a one-party system, Chinda dismissed fears, stating that the PDP’s revival depends on strategic repositioning rather than the ruling All Progressives Congress’ actions. “We must go back to the drawing board, put the country first, and rebuild,” he concluded.
The Minority Leader’s remarks underscored his commitment to legislative diligence and party discipline, even as the PDP navigates its current turbulence.
HaAN OPEN LETTER TO ALHAJI ATIKU ABUBAKAR: THE CASE OF GOING TO EQUITY WITHOUT CLEAN HANDS
My attention as a Public Affairs Commentator and Citizen of Wukari in Taraba State has been invited to various invectives of unprecedented dimension directed at His Excellency, Senator Godswill Akpabio, GCON by my brother, Alhaji Atiku Abubakar ostensibly to give oxygen to resurrect his endless political odyssey and sordid presidential ambition. I am weighing into this public narrative to interrogate various disruptions triggered by some notable politicians like Atiku Abubakar in our national life.
It is hardly possible to build anything out of frustration and bitterness. This is sadly the predicament of a one-time Vice President, Atiku Abubakar who is on course to being enlisted in the Guinness Book of Records, as the only person globally, who has unsuccessfully contested for President for six times spanning 33 years.
These bitterness and frustration have beclouded his reasoning. Atiku Abubakar, who is shamefully a dominant mention in every page of the corruption history in Nigeria, an insipid and serial sodomist, could have rather used the Ramadan period to seek for the atonement of his many mortal and monumental sins from the Almighty Allah, but his engagement in chicanery and unbridled umbrage in the most malicious and defamatory manner is the sad characterization of a man reputed for low family values and child abuse.
The series of pernicious lies peddled by Atiku deserve response in this era of positive and innovative Renewed Hope Agenda of President Bola Ahmed Tinubu’s administration, which has invited collective actions for the growth and prosperity of Nigeria. Atiku Abubakar’s putrid and repulsive corrupt practices have made Nigerians to reject him for a record six times. A master of failure indeed!
It is an established fact that Atiku Abubakar is the most corrupt Nigerian, having been associated with every high-profile corruption allegation in the country across the private and public sectors. In 1996, the then Head of State, Gen. Sani Abacha seized control of the NICOTES shares belonging to him and renamed it Integrated Logistics Services Inc.
In 2006, Atiku was indicted by the EFCC and the Federal Government Administrative Panel of Inquiry after a Special Audit /Forensic Investigation of PTDF from 1999 to May 31, 2006.
Internationally, he is known as a super conman. Atiku’s association with American Congressman William Jefferson, who was jailed for 13 years in 2009 over bribery and other charges is well known to millions of Nigerians.
For those who don’t know, Atiku was the subject of a probe about 15 years ago by the United States Senate Committee on Homeland Security and Governmental Affairs chaired by Senator Carl Levin. He was indicted for using offshore companies to siphon about 40 million dollars from Nigeria between 2000 and 2008 to his fourth wife in the United States, Jennifer Iwenjiora Douglas Abubakar (now divorced).
Former President Olusegun Obasanjo, whom Atiku served for 8 years as Vice President, in his book ’MY WATCH’, in the chapter, titled “Atiku and US Justice Entanglement”, gave a vivid account of “corrupt involvement” of Atiku with a company called iGATE and William Jefferson. Obasanjo equally linked Atiku to the embezzlement of $20 million, funds that were to be utilized by the Petroleum Technology Development Fund (PTDF), and another $125 million to fund PTDF during 2003 fiscal year.
The immediate past governor of Kaduna state, Mallam Nasir El-Rufai has also spoken eloquently about Atiku’s corrupt adventure. In his book, ’The Accidental Public Servant’, El-Rufai gave a detailed account of Atiku’s corrupt involvement in Ericsson’s deals, the PTDF scandal, Abuja Water Treatment Plant contract and his obsession with marabouts – these marabouts that have been deceiving him since 1991 that he will be president.
A serial women abuser, Atiku has divorced two of his wives since 1971 (Ladi and Jennifer). In the case of Jennifer, even after the divorce, he threatened and bullied her out of Nigeria. Jennifer had to sell her law chambers in Nigeria and relocated to the UK.
He has been after the woman in an attempt to dispossess her of her assets and properties.
A certified child abuser, Atiku’s exploits with hapless boys and young men are well known. No wonder, in his eight years as vice president and many years as wealthy man (though filthy), Atiku could not boast of a school that could cater for the educational needs of the less privileged, especially boys (Almajiri’s), but now runs the exotic ABTI University and a host of other businesses that are out of the reach of the common man.
In the contrary, unlike Atiku Abubakar, Senator Godswill Akpabio, GCON has for over two decades, conducted himself with integrity and transparency. His accomplishments in Akwa Ibom State, in particular, and Nigeria in general, are symbolized in the countless legacies of infrastructure, human capacity development and tourists’ hub.
Just yesterday (Tuesday), the Super Eagles of Nigeria hosted The Warriors of Zimbabwe in a World Cup qualifier at the Godswill Akpabio International Stadium, Uyo. The stadium, which is the only FIFA approved facility in Nigeria, was built by Akpabio as governor of the state. What did Atiku do for Adamawa state and Nigeria?
The Zimbabwean delegation also flew Ibom Air and landed at the Victor Attah International Airport, Uyo- all legacies of the Uncommon Transformer. But where are Atiku’s legacies for the people? He can only lay claim to a chain of businesses, which are products of pillaging and corrupt investments.
In all of these, it is crystal clear that Akpabio’s unflinching support for President Tinubu, who blocked Atiku’s emergence as the presidential candidate of the APC in 2015 and frustrated his return bid in 2019 and yet floored him in the 2023 general elections is the reason for Atiku’s hostile charge against the Senate President.
But using Akpabio as a ladder to get to the president cannot do Atiku any good. Both Tinubu and Akpabio are united by the resolve to rejig and reset the nation and give Nigerians dividends of democracy, which Atiku as vice president worked tirelessly to undermine for personal aggrandizement.
It is also axiomatic that Atiku has started preparation for the 2027 general elections. As for Akpabio and Tinubu, they are preoccupied with state and governance issues and would not swim with the former vice president in his quest to distract the duo from delivering good governance to Nigerians. When 2027 comes, Nigerians will, for the umpteenth time give, Atiku a black eye and vote the best candidate.
DANJUMA ISAIAH writes from
Wukari in Taraba State
The Honourable Minister of Defence, Mohammed Badaru Abubaka mini visited the Executive Governor of Katsina State, Mallam Umar Dikko Umaru Radda, at the Government House in Katsina to express condolences following the passing of his beloved mother, Hajiya Safara’u Umar Bare-Bari Radda.
During the visit, Minister Abubakar, on behalf of himself, his family, the Minister of State for Defence H.E. Dr. Bello Matawalle MON and the entire staff of the Ministry of Defence, conveyed heartfelt condolences to Governor Radda, his family, and the people of Katsina State during this difficult time.
In his remarks, he prayed for Almighty Allah to forgive the deceased, grant her mercy, and bestow upon her a place in Jannatul Firdaus. He also offered prayers for the Governor and his family, asking for strength and fortitude to bear this profound loss.
The Minister was accompanied by Hon. Idris Garba Jahun, former Speaker of the Jigawa State House of Assembly, along with Hon. Abubakar Sadiq Jallo and Hon. Mas’ud A. Naruwa, members of the Katsina State House of Assembly representing Hadejia and Babura, respectively.
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