The Nigerian National Petroleum Company Limited (NNPCL) has deducted a total of $525.09 million from its remittances to the Federal Inland Revenue Service (FIRS) under the Road Infrastructure Tax Credit Scheme (RITCS). This move has raised concerns among state governments, who argue that road construction is the responsibility of the Federal Government.
According to a Federation Account Allocation Committee (FAAC) report, NNPCL made monthly deductions of $52.51 million from funds due to FIRS for Joint Venture Gas and Company Income Tax between February and November 2024. The RITCS allows private companies to invest in critical road infrastructure in exchange for tax relief.
State representatives at the FAAC meeting objected to the deductions, demanding that their share of the withheld funds be calculated based on the existing revenue-sharing formula and refunded. They also questioned why funds meant for revenue distribution are being used for federal infrastructure projects.
The Chairman of the Revenue Mobilisation Allocation and Fiscal Commission has requested detailed information from FIRS about the tax credits granted under the scheme. The RITCS has been instrumental in financing major infrastructure projects, such as the 32-kilometre Apapa-Oshodi-Oworonshoki-Ojota expressway.
About The Author
