Senate panel: FG’s tax credit scheme will bridge gap in financing road projects

The senate committee on finance says it is convinced that the federal government’s tax credit scheme will bridge in financing road projects.

Sani Musa, chairman of the senate committee on finance, spoke when he met with David Umahi, minister of works, and other senior officials of the ministry.

The tax credit scheme initiated by an executive order signed by former President Muhammadu Buhari is a model that provides that companies’ taxes are paid in advance to enable the government to invest in notable projects like road construction and rehabilitation.

Musa said the contractors involved should ensure that the road projects are completed on time.

“My conclusion is that the committee will look at all that we have just heard from you ( the Hon. Minister) and make our decisions,” Orji Uchenna Orji, media aide to the minister, quoted the Niger senator as saying.

“But based on what we have heard from you, we are convinced that the Tax Credit policy of the Federal Government is a welcome initiative, which is worthwhile and we believe that every exigency has a purpose for which that period needs.

“And that is what called for the Presidential Order. And what we will appeal to both NNPC, Federal Ministry of Works, and the contractors is to make sure that those projects are completed.”

Earlier, Umahi said the ministry under his stewardship is bringing “enduring solutions to the road failures”.

“If you look at the documents we submitted, you will see that we analyzed the projects zone by zone. And so we also looked at the nature of the roads from Benin to Warri,” the minister said.

“It’s also a very terrible situation. So we began to fight with the contractors, and I said there is no amount of asphalt you use on this road that will stand.

“So what we did was to excavate all the soil up to 1 meter depth, fill back with 500cm lumps, and fill back with 400cm sand. And then now go back to fill with stone base, allow it for traffic to be on it. After 30 days, then you put an additional 10cm stone base.

“That is 55 percent cement. And then you have to use concrete.”