FIRS, NNPC to cancel non-performing road construction contracts

Kunle Sanni

The Nigerian National Petroleum Company (NNPC) Limited and the Ministry of Works have partnered with the Federal Inland Revenue Service (FIRS) to terminate any non-performing contracts related to the road-building tax scheme. 

FIRS said in a statement issued on Friday that they had also decided to draft and submit a message to President Bola Ahmed Tinubu on the N2.73 trillion funding gap associated with the programme. 

On Friday in Abuja, FIRS Chairman Zacch Adedeji had a private meeting with NNPC Chief Financial Officer (CFO) Umar Ajiya and Works Minister David Umahi.

According to the statement, the meeting’s goal was to talk about the tax credit arrangement with the previous administration.

The ECFIRS had previously stated that whilst the Tax credit project is important, the method with which the Tax credits were issued was an aberration to the roles of the FIRS, NNPCL and Ministry of Works,” the tax agency said.

At the meeting, FIRS said the parties agreed the tax credit scheme would continue, according to the president’s directive.

“All NNPCL road infrastructure projects that have started should not be expanded but continue to the amount of N2.59 trillion,” FIRS said.

“All non-performing contracts should be terminated immediately and re-awarded immediately. Contractors are warned that the project will not be executed as they are presently done.

“A memo agreed upon by the FIRS, NNPCL and the Ministry of Works shall be written and sent to President Bola Ahmed Tinubu for the N2.73 trillion funding gap on the road infrastructure project and channeled through the National Assembly for approval.

“In the review process, the going rate for contracts shall be agreed upon by the Contractors or otherwise have their contracts subject to termination.”

The FIRS, NNPC, and the Ministry of Works have highlighted the importance of collaboration among agencies and organizations to achieve their respective mandates and align with the objectives of the current administration led by President Bola Tinubu.

By working together, they emphasized, they would leverage their unique strengths and resources to increase efficiency, promote transparency, and ultimately deliver better results for the Nigerian people.