Reps to investigate road infrastructure under tax credit scheme

The House of Representatives has initiated an investigation into the effectiveness of the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme, established under Executive Order No. 007, to evaluate its impact on the nation’s road infrastructure.

The scheme, which allows private companies to recover the costs of road construction and refurbishment through tax credits, was launched to address Nigeria’s infrastructure deficit, estimated at N348 trillion over 10 years.

However, five years after its inception, concerns have been raised about the scheme’s transparency, project selection process, and its overall contribution to improving the country’s road infrastructure.

The motion, moved by Hon. Mansur Musa, underscored the critical role of the scheme in encouraging private sector involvement in road development.

During the presentation of the motion, Hon. Musa emphasized that the success of the tax credit scheme depends on the viability and cost-efficiency of the projects undertaken.

“Five years in, the effectiveness of this scheme remains uncertain. The process by which beneficiary companies are selected seems opaque, and we are not sure if the projects they are involved in align with the objectives of this initiative,” Hon. Musa stated.

The House expressed concern over the limited information available regarding how road infrastructure projects are evaluated and approved, amid fears that the utilization of tax credits may not be delivering the intended impact.

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The House also raised concerns about potential inefficiencies and corruption within the scheme, which may be undermining its goals.

As a result, the House resolved to urge the Federal Ministry of Finance to review the scheme’s operations, with a focus on assessing the eligibility and selection criteria of beneficiary companies, the scheme’s impact on road infrastructure development, and the transparency and accountability measures in place to ensure its success.

Furthermore, the Committee on Works, chaired by Hon. Akin Alabi, has been mandated to investigate the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme.

The committee is expected to examine the efficiency of the scheme and address any instances of corruption, with a report to be submitted within four weeks for further legislative action.