Nigerian Government Halts Road Tax Credits for Corporations, Emphasizes Appropriation Process

The Nigerian government, through the Nigeria Revenue Service (NRS), has decided to discontinue the road tax credit scheme for corporate firms funding federal road projects. The Executive Chairman of NRS, Zacch Adedeji, disclosed this decision, highlighting the shift towards requiring projects to undergo the proper appropriation process.

The move is intended to align with constitutional mandates and financial regulations, emphasizing the importance of legislative approval for infrastructure funding. The decision to end the tax credit scheme was driven by the government's focus on central budget allocations for road projects to ensure compliance with constitutional and financial rules.

The discontinuation of the scheme also addresses the technical limitations faced by NRS in assessing road construction projects adequately. Major firms like Lafarge Africa, Unilever Nigeria, and Flour Mills Nigeria, which historically participated in the tax credit scheme, will no longer be able to offset tax payments for road projects without proper constitutional approval.