The Group Chief Executive Officer of the Nigerian National Petroleum Company NNPC Limited, Mallam Mele Kyari has described the Refurbishment Investment Tax Credit (RITC) scheme as a game changer.
He also expressed satisfaction with the progress of work on the Lagos-Badagry expressway in Lagos and other Federal roads nationwide.
The GCEO made this remark when he alongside the board of directors of the company, the Federal Ministry of works and the Federal Inland Revenue Service FIRS, inspected the ongoing rehabilitation of the Lagos-Badagry expressway. (Agbara Junction -Nigeria/Benin border).
“We’re happy with work progress in Lagos-Badagry & other federal roads nationwide. The RITC Scheme is a game changer put in place by Mr. President which in the next 24 months,will bring about massive change to the entire road network in the country” He said.
The rehabilitation of the Lagos-Badagry expressway and about 20 other roads across the country are funded by the NNPCL under the RITC Scheme
According to the NNPCL, it keyed into the Federal Government RITC Scheme in order to improve road Infrastructure across the country, so as to ensure efficient and sustainable distribution of Petroleum products all over Nigeria.
Similarly, the NNPC Limited alongside the FIRS and Federal Ministry of works also inspected the reconstructed Bida-Lambata road in Niger State by the NNPCL.
While explaining the benefits of the Federal Government’s RITC Scheme, the Executive Chairman of the FIRS, Mr. Nami Muhammad said the road will ease the movement of people from one place to another.
“This road will facilitate trade, movement of people from one destination to another & ensure safety of lives and property.” Mr. Nami said.
In his remarks the Etsu of Nupe, His royal highness, Alhaji Yahaya Abubakar extolled the virtues of cooperation and collaboration between the NNPCL, the FIRS and the Federal Ministry of works stating that the consistent funding by the NNPCL led to quality and prompt delivery of the Bida-Lambata road.
The selected 21 federal roads, covering a total distance of about 1,804.6 kilometers, will gulp about N621.24 billion naira and this amount is to be deducted by the FIRS from the NNPCL’s
tax obligations thereby allowing the company to recoup the funds provided as credit against the Company’s Income Tax (CIT).
It will be recalled that on the 25th of January 2019, President Muhammadu Buhari signed the Executive Order No. 007 on Road Infrastructure Development and Refurbishment Investment Tax Credit (RITC) Scheme. The Scheme is for a period of 10 years from its commencement date.
The RITC Scheme is a public-private partnership intervention that enables the Federal Govt of Nigeria (FGN) to leverage private sector capital and efficiency for the construction, refurbishment and maintenance of critical road infrastructure in key economic areas in Nigeria.
The private participants of the Scheme provide the funds for the construction or refurbishment projects and in exchange, the participants are entitled to recoup the funds provided as a credit against the Companies Income Tax (CIT) they are expected to pay.
