Reps Advocate Tax Incentives for Corporate Investment in Education and Healthcare

• The House of Representatives urges tax incentives for companies through the Refurbishment Investment Tax Credit (RITC) scheme, promoting education and healthcare infrastructure investment
• Lawmakers propose extending the RITC scheme to encourage private sector funding for public school and hospital infrastructure, addressing critical needs

The House of Representatives has urged the federal government to introduce tax incentives for companies, leveraging the Refurbishment Investment Tax Credit (RITC) scheme or a comparable one. This call aims to encourage companies to invest in enhancing education and health infrastructure across the nation.

The motion, addressing matters of urgent public importance, was presented during Thursday’s plenary session. Sponsored by Naolim Nnaji and co-sponsored by a group of legislators, the motion highlights the critical need for private sector involvement in bolstering education and healthcare infrastructure.

Nnaji recalled the 2019 Presidential Executive Order signed by former President Muhammadu Buhari, establishing the Road Infrastructure Development and Refurbishment Investment Tax Credit (RITC) scheme. The RITC scheme, initially focused on road projects, is now proposed to extend to education and health initiatives.

Lawmakers emphasized the scheme’s objective — incentivising private sector funding for infrastructure projects, ensuring timely project completion and full fund recovery. Notably, in 2021, Femi Oluwaniyi, the then Coordinating Director of Tax Operations at the Federal Inland Revenue Service, urged corporate bodies to leverage the government’s tax credit facility for road infrastructure.

Recognizing the strain on the Federal Government in bridging the infrastructure gap, especially in public schools and hospitals, lawmakers underscored the vital role of quality education and healthcare in societal development and economic growth.

The motion emphasized, “The current economic instability impedes government intervention or adequate funding of our public schools and hospitals, potentially causing insecurity, medical tourism, school degradation, and migration abroad.”

To address this, lawmakers proposed extending similar tax waivers and incentives offered to companies engaged in road infrastructure projects to those investing in public school and hospital infrastructure. They argued that this move would enhance the corporate image of private companies, particularly in economically disadvantaged areas, potentially reducing corporate income tax.

The House adopted the motion, urging the Federal Government to consider granting tax incentives to more companies for engagement in the infrastructural development of public schools and hospitals under a comparable RITC Scheme. The resolution also called on relevant ministries and agencies to initiate bureaucratic processes for successful implementation, ensuring stakeholder input and a thriving mode of operation.

To oversee compliance, the House mandated its Finance, Education, Healthcare Services, Health Institutions, and Legislative Compliance committees to report back within three weeks for further legislative actions.