NNPC pulls out of Buhari-era road scheme after spending $577.6m, N822.3bn
By Kunle Sanni –
The Nigerian National Petroleum Company Limited (NNPC) has withdrawn from the Road Infrastructure Tax Credit Scheme (RITCS), a flagship policy launched in 2019 under the late former President Muhammadu Buhari.
The exit follows contributions of $577.6 million and N822.3 billion over a 16-month period, according to the Federation Account Allocation Committee (FAAC). The move allows the national oil company to focus on its core operations but leaves the federal government seeking N3 trillion to complete affected road projects.
Introduced through Executive Order 007, the RITCS enabled private sector players to finance critical road construction and rehabilitation in exchange for tax credits. NNPC was one of the programme’s largest backers, funding major highways across all six geopolitical zones.
The FAAC Post-Mortem Sub-Committee report, obtained by THISDAY, covered February 2024 to May 2025. It showed NNPC’s last dollar contribution of $52.5 million was made in December 2024, bringing total foreign currency payments to $577,604,432. From early 2025, deductions reverted to naira, including N151.27 billion in January and N671.04 billion in April, totalling N822.3 billion.
The report noted these figures exclude payments before 2024, suggesting NNPC’s total outlay is much higher. Contributions were deducted monthly from its tax obligations via the Federal Inland Revenue Service (FIRS) and channelled into approved road projects.
In Phase I, launched in late 2021, NNPC pledged N621.24 billion for 21 strategic roads spanning 1,804.6 km, including the Ilorin–Jebba–Mokwa/Bokani Junction Road, Suleja–Minna Road, Bida–Lambata Road, and the Lagos–Badagry Expressway.
Phase II, approved in January 2023, expanded the investment to N1.9 trillion for 44 federal roads covering 4,554 km nationwide. Projects included the East-West Road, Port Harcourt–Onne Junction upgrade, Nembe–Brass Road in Bayelsa, and key corridors in the North-east and North-central.
NNPC’s withdrawal marks the end of its direct involvement in the tax credit funding model, shifting the burden of ongoing road works entirely to the federal government and other potential private sector investors.
