The Federal Government has discontinued the use of corporate tax credits to fund road construction, insisting that such projects must go through the proper appropriation process.
The disclosure was made by Mr. Zacch Adedeji, Executive Chairman of the Nigeria Revenue Service (NRS), during a joint sitting of the editorial boards of ThisDay and Arise News on Wednesday, according to ThisDay.
The decision signals a shift from the previous Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme, which allowed major firms to fund federal road projects using tax credits.
Mr. Adedeji said the move aligns with constitutional requirements and financial regulations, stressing that the NRS cannot bypass legislative approval in funding infrastructure. The government has emphasized that future road projects will rely on centrally budgeted allocations.