FG grants N37.28bn tax credit to NLNG for Bonny-Bodo Road

The Federal Inland Revenue Service (FIRS), has issued the Nigeria Liquefied Natural Gas Limited (NLNG), Tax Credit Certificate worth N37.28bn for the construction of the Bonny-Bodo Road and Bridge, in Rivers State.

NLNG is one of the companies undertaking the construction of roads in the country under the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme,

The certificate was received by the Company’s Deputy Managing Director, Olalekan Ogunleye, during the handover ceremony held last Thursday at the FIRS Headquarters in Abuja.

While issuing the Tax Credit Certificate, Muhammad Nami, Chairman, FIRS commended the NLNG for its increased investments in Nigeria.

“The Service has faith in your Company and the increased investments it is making in our country. We look forward, with optimism, to the completion of your Train Seven (7) Project for it to join the country’s tax revenue streams,” Nami noted.

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He also highlighted how the Service is improving on its relations with stakeholders, as well as building a customer-centric tax authority for improved revenue generation.

“In order to efficiently deliver on our mandate, the Board and Management of the Service is focused on the following strategic planks and action areas: we are energising our consultations and regular engagements with stakeholders; we are building a customer centric and data centric organisation while also restructuring the administrative framework and processes of the Service; we are driving towards full automation of core tax operations,” he said.

“You may recall that the FIRS started with the development and deployment of an in-house digital solution – The Taxpromax Solution. This solution allows taxpayers to sit in the comfort of their offices or homes to file returns, pay taxes and conduct all forms of tax processes with us.

“At the heart of our customer-centric reforms is the setting up of a multi-lingual Call Centre for enquiries and report from taxpayers.

“Consequent upon these strategic moves, the Service recorded an unprecedented collection of over N6trillion in 2021 and has set its sight on higher performance this year. There is no doubt that the Service can achieve its targets with taxpayers like the NLNG.”

Nami assured of FIRS readiness to attend to any issue that will enable taxpayers to comply with statutory tax obligations.

The Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme, also referred to as the Road Infrastructure Tax Credit Scheme is a public-private partnership scheme signed by President Muhammadu Buhari under Executive Order 007, in January 2019, that enables the Federal Government of Nigeria to leverage private sector capital and efficiency for construction, refurbishment and maintenance of critical road infrastructure in the country.

Under the Scheme, participants are entitled to tax credits against their future Companies Income Tax to the tune of the project cost incurred in the construction or refurbishment of eligible roads.

NNPC, MTN, Transcorp Group, Access Bank, GZI industries, among others are some of the entities currently participating in the Road Infrastructure Tax Credit Scheme of Executive Order 007.

In his remarks, Ogunleye who represented the CEO NLNG, Philip Mshelbila noted how the company has been a major contributor to the country’s economic development and is working towards building a better Nigeria.

He also commended the FIRS for being at the forefront of economic resuscitation and progress the country is experiencing.

“I also want to put on record our appreciation for the expedited issuance of the tax credit certificate. As you know, this tax credit is in relation to the Bonny-Bodo road which is itself a landmark project and a pilot scheme in this initiative.

“This would be the first time the Island of Bonny will be linked by road to the rest of the country. And this is very significant to the development and advancement of the country because it will open new opportunities for economic activity,” Ogunleye noted.