Abuja, Nigeria – The House of Representatives has moved to investigate the effectiveness of the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme, established under Executive Order No. 007, to assess its impact on the nation’s road infrastructure. The scheme, which allows private companies to recover the cost of road construction and refurbishment through tax credits, was launched to address Nigeria’s infrastructure deficit, estimated at 348 trillion Naira over 10 years.
The motion, moved by Hon. Mansur Musa, highlighted the critical role of the scheme in encouraging private sector involvement in road development. However, five years after its inception, concerns have emerged regarding the scheme’s transparency, project selection process, and its overall contribution to improving the country’s road infrastructure.
During the presentation of the motion, Hon. Musa emphasized that the success of the tax credit scheme hinges on the viability and cost-efficiency of the projects undertaken. However, the lack of transparency in the selection and onboarding of companies benefiting from the scheme has raised red flags, with lawmakers questioning the criteria used by the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme Management Committee.
“Five years in, the effectiveness of this scheme remains uncertain. The process by which beneficiary companies are selected seems opaque, and we are not sure if the projects they are involved in are aligned with the objectives of this initiative,” Hon. Musa stated.
The House expressed concern about the limited information available on how road infrastructure projects are evaluated and approved, amid fears that the utilization of tax credits might not be delivering the intended impact. There are also concerns about potential inefficiencies and corruption within the scheme, which may be undermining its goals.
The House, therefore, resolved to urge the Federal Ministry of Finance to review the scheme’s operations. This includes assessing the eligibility and selection criteria of beneficiary companies, the impact of the scheme on road infrastructure development, and the transparency and accountability measures in place to ensure its success.
Furthermore, the Committee on Works, chaired by Hon. Akin Alabi, has been mandated to investigate the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme. The committee is expected to examine the efficiency of the scheme and address any instances of corruption, with a report to be submitted within four weeks for further legislative action.
This investigation comes at a critical time when Nigeria is grappling with deteriorating road networks, and it is hoped that the findings will lead to reforms that will enhance the scheme’s effectiveness and foster greater public confidence in its ability to deliver much-needed infrastructure.