NNPC does not support road construction – Fashola – Blueprint Newspapers Limited

Works and Housing Minister Babatunde Raji Fashola revealed on Tuesday that the Nigerian National Petroleum Corporation (NNPC) was not resuming road construction for his ministry.

The minister spoke during the presentation of the check for the 21 critical roads funded by the NNPC through the tax credit scheme, which took place at the ministry’s headquarters in Abuja.

Shedding light on the project, he said: “The NNPC does not take over the roads, the NNPC does not build the roads, the NNPC just presents its tax obligations to the authority which is supposed to collect, namely the Federal Inland Revenue Service (FIRS), and they are spending it on building roads that have been awarded and would have been completed without insufficient budget provisions.

“Let me clarify that this is a tax credit intervention and that essentially the private sector company is offering what should have been its tax compensation for debts to the government. “

The minister revealed that the project which falls under Executive Decree 007 was inherited from the previous administration which did not implement it, adding that the Buhari administration recognized it and used it to run the road. Obajana – Kabba as a strategic partnership with the private sector. sector.

He added that it is used to address the Apapa – Oworoshoki Expressway which serves the country’s widely established port.

Fashola said the Buhari administration amended Executive Decree 007 to allow impact roads to be diversified and also allow small businesses to band together to use their tax obligations for small roads that will help their businesses.

He was pleased that the amendments had aroused the interest of conglomerates like the Dangote group, the oil industry which intervenes with 600 billion naira to deal with 21 roads covering more than 1,800 kilometers. He also noted that the telecommunications companies have indicated that they are ready to participate.

He also revealed that a governance process has been put in place which requires the ministry to review the certification, send it to FIRS for verification within 5 days, after which the NNPC is expected to pay within 30 days.

In his speech, Federal Inland Revenue Service executive chairman Muhammed Nami, who thanked the federal government for the tax credit scheme, said it was introduced due to insufficient budget allocations.

He expressed optimism that this will go a long way in bridging the road infrastructure gap.

Previously, the director general of international energy relations, Mr. Garba Hadejia, who represented the general director of the NNPC group, Mele Kyari, lamented that most of the pipelines having been vandalized, the only option left for his organization is to transport its products by road.

The occasion also saw the signing of a Memorandum of Understanding, MOU, between the stakeholders: the Federal Ministry of Works and Housing, FIRS, NNPC and contractors.

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