• Wednesday, June 19, 2024
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BusinessDay

NNPC presents N621bn symbolic cheque for construction of 21 roads

Rivers govt approves N6.7bn for completion of abandoned road in PH

The Nigerian National Petroleum Limited on Tuesday presented a symbolic cheque of N621 billion to the ministry of works and housing for the construction of 21 selected roads across the country.

Recall the Corporation in October had expressed interest to invest in the reconstruction of selected federal roads in order to sustain a smooth supply and distribution of petroleum products across the country.

The road construction project which is being executed under the tax credit scheme is funded through the Federal Inland Revenue Service in alignment with the President’s executive order 7.

The Chief Financial Officer of the NNPC, Umar Ajiya, explained that the condition of the road networks in the country is affecting businesses, especially transportation of petroleum products across the country.

According to him, the tax credit scheme presents a good platform to support the rehabilitation of major infrastructural projects.

“The condition of our roads currently affects our business and the energy security of Nigeria.

“Most of our pipelines have been vandalised through the years. And sometimes we find it difficult for our tanker drivers to convey products across the country.

Read also: FIRS eyes informal sector, proposes road infrastructure tax

“So we consider the tax credit scheme a very important way to fund these projects, we are working on 21 roads and we are ready to fund the N621 billion,” he said.

Mohammed Nami, the Chairman of the Federal Inland Revenue Service (FIRS) said that the investment is a result of Executive order 007 of 2019, which uses companies’ tax to fix critical infrastructure.

This tax credit is issued after confirmation is done that monies that ordinarily should be invested are invested. This is also to support the fact that there is a contract

According to him, a tax credit scheme gives value to taxpayers money as it ensures that funds are deployed to provide infrastructure across the country

“The importance of this scheme cannot be overemphasized because the budgetary allocation for the roads is not only minimal but also insufficient.

“Under the tax credit scheme, companies are allowed to invest in road construction, infrastructural projects in exchange of tax credit certificate we are issuing to them.

“The construction of these roads will ensure that goods are moved from a part of the country to another, as we bridge the infrastructural gap in the country,” he said.

In his remark, the Minister of Works and Housing, Babatunde Fashola commended the effort of the NNPC while urging companies to take advantage of the tax credit scheme to bridge the infrastructural gaps in the country.

“We are now seeing companies that are showing interest in the scheme, and we hope this will help in developing our infrastructure.

“With this presentation today, contractors will have the confidence to work, knowing that they will be paid.”