The Federal Inland Revenue Service (FIRS) has announced a partnership with the Nigerian National Petroleum Company (NNPC) Limited and the Ministry of Works to discontinue underperforming contracts within the tax scheme for road construction.

In a statement released on Friday, FIRS revealed that Zacch Adedeji, the Chairman, engaged in a closed-door meeting with David Umahi, Minister of Works, and Umar Ajiya, NNPC Chief Financial Officer (CFO), in Abuja. The primary agenda of the meeting was to address the tax credit agreement from the previous administration.

FIRS conveyed that, while recognizing the importance of the Tax credit project, the issuance of Tax credits in the past was inconsistent with the roles of FIRS, NNPC, and the Ministry of Works.

According to FIRS, the parties reached a consensus during the meeting, affirming the continuation of the tax credit scheme as per the president’s directive. The statement outlined key decisions, including the directive that ongoing NNPC road infrastructure projects should proceed up to the allocated sum of N2.59 trillion.

Moreover, FIRS emphasized the termination of non-performing contracts, urging immediate re-award to deserving contractors. The tax agency cautioned contractors that projects would not proceed as currently executed, and a memo addressing the N2.73 trillion funding gap in the road infrastructure project would be written and submitted to President Bola Ahmed Tinubu. The memo is set to be channeled through the National Assembly for approval.

The review process will involve establishing agreed-upon rates for contracts, and contractors failing to comply may face termination. FIRS, NNPC, and the Ministry of Works underscored the importance of collaboration among agencies and organizations to fulfill their mandates and align with the objectives of the current administration led by President Bola Ahmed Tinubu.

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