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Tax credit scheme: FIRS, NNPC to terminate non-performing road construction contracts

Tax credit scheme: FIRS, NNPC to terminate non-performing road construction contracts
February 16
19:53 2024

The Federal Inland Revenue Service (FIRS) says it has collaborated with the Nigerian National Petroleum Company (NNPC) Limited and the ministry of works to terminate all non-performing contracts under the tax scheme for road construction.

In a statement on Friday, FIRS said they have also agreed to write and send a memo to President Bola Ahmed Tinubu regarding the N2.73 trillion funding gap under the scheme.

The FIRS said Zacch Adedeji, its chairman, met with David Umahi, minister of works, and Umar Ajiya, NNPC chief financial officer (CFO), in a closed-door meeting on Friday in Abuja. 

The goal of the meeting, according to FIRS, was to discuss the tax credit agreement of the previous administration. 

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“The ECFIRS had previously stated that whilst the Tax credit project is important, the method with which the Tax credits were issued was an aberration to the roles of the FIRS, NNPCL and Ministry of Works,” the tax agency said. 

At the meeting, FIRS said the parties agreed the tax credit scheme would continue, according to the president’s directive.

“All NNPCL road infrastructure projects that have started should not be expanded but continue to the amount of N2.59 trillion,” FIRS said. 

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“All non-performing contracts should be terminated immediately and re-awarded immediately. Contractors are warned that the project will not be executed as they are presently done.

“A memo agreed upon by the FIRS, NNPCL and the Ministry of Works shall be written and sent to President Bola Ahmed Tinubu for the N2.73 trillion funding gap on the road infrastructure project and channeled through the National Assembly for approval.

“In the review process, the going rate for contracts shall be agreed upon by the Contractors or otherwise have their contracts subject to termination.”

FIRS, NNPC and the ministry of works emphasised the synergy among agencies and organisations to enable the fulfilment of their mandate and to key into the goals of the present administration of President Bola Ahmed Tinubu.

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