FAAC Probes Road Tax Scheme Over Poor Responses

The Federation Account Allocation Committee (FAAC) is investigating the Road Infrastructure Tax Credit Scheme due to poor responses from participating companies.

Only three out of seven companies have provided required details on their involvement and expenditure.

“The Sub-Committee had received responses from three of these participating companies, which were forwarded to FIRS for confirmation,” the document stated.

The scheme allows companies to construct roads and recover investments through tax credits. Companies involved include BUA International Limited, Dangote Cement, and NNPCL.

FAAC wrote to companies seeking info on “the level of involvement in the scheme, the amount spent and the level of ongoing projects from 2019 to 2025.”

Deductions under the scheme between 2024 and 2025 totaled $577,604,432.08 and N822,309,022,528.59. NNPCL’s deductions were $52.51m monthly in 2024.

“The Ad-hoc Committee is still expecting the remaining companies’ response in order to conclude the assignment and report back. This assignment is still a work in progress.”

Minister of Works David Umahi announced changes to payment arrangements, saying contractors will now be paid by the Ministry of Works, not NNPCL.

“The President has directed that all the inherited NNPCL projects must continue. But NNPCL is not going to pay you again.”

Umahi added that contractors must exit existing tripartite agreements to get paid. “The Permanent Secretary is going to write to all contractors and direct them to exit the NNPCL and Ministry of Finance or FIRS arrangement.”