Indications emerged Wednesday concerning moves by the House of Representatives to initiate a comprehensive investigation into the Road Infrastructure Development and Refurbishment Investment Tax Credit scheme, initiated by former President Muhammadu Buhari in 2019.
The decision followed the adoption of a motion of Urgent Public Importance brought forward by Hon. Ibrahim Aliyu during the plenary session on Wednesday.
The scheme, established through Executive Order No. 007, was designed to address Nigeria’s significant infrastructure deficit by encouraging private sector participation in road development.
Under the programme, private companies that invest in the construction or refurbishment of eligible roads can recover their costs through tax credits against future Companies Income Tax (CIT) liabilities.
However, Hon. Aliyu raised concerns about the effectiveness and accountability of the scheme, arguing that, five years after its launch, it had yet to deliver clear results.
In his lead debate, Hon. Aliyu emphasised the importance of ensuring public funds were used responsibly and questioned whether the scheme had truly contributed to bridging Nigeria’s infrastructure gap.
He noted that the Federal Government had previously stated that Nigeria would need approximately N348 trillion over a decade to close the nation’s infrastructure deficit. Despite this massive need, the results of the Tax Credit Scheme remain uncertain.
Said Aliyu: “The House observes that this Tax Credit Scheme was meant to encourage private sector participation in road infrastructure development in Nigeria.
It allows companies to recover costs incurred in constructing or refurbishing eligible roads as tax credits against their future Companies Income Tax liability”.
Aliyu also pointed out that after five years, the scheme’s viability, efficiency, and overall cost-effectiveness of the projects completed under its umbrella had not been sufficiently evaluated.
The House resolution sought to investigate the projects completed so far, as well as the mechanisms for ensuring accountability and transparency in how the scheme had been implemented.
The Tax Credit Scheme has been lauded for its innovative approach to solving Nigeria’s infrastructure problem by leveraging private sector resources.
Major corporations, including Dangote Group, have participated in the programme, with some high-profile road projects being undertaken under the scheme.
However, critics argue that while the scheme offers short-term relief for some road projects, it may not address the long-term structural issues of underfunding and mismanagement in Nigeria’s infrastructure sector.
Some stakeholders have also raised concerns that certain projects may not have been cost-effective or that the benefits of the scheme could be disproportionately favouring large corporations at the expense of smaller businesses.
The House of Representatives resolved to set up a committee to conduct a thorough investigation into the scheme.
The inquiry will focus on evaluating the overall impact of the programme on Nigeria’s road infrastructure, the transparency of the project selection process, and whether the projects completed under the scheme have provided value for money.
Stressed Aliyu during the debate: “The House further observes that five years after its inception, the scheme’s effectiveness, which hinges on the viability and cost efficiency of projects undertaken, is yet to be ascertained”.
