The Nigerian National Petroleum Company Limited (NNPCL) has withdrawn from the Road Infrastructure Tax Credit Scheme (RITCS). The scheme was launched in 2019 by the late President Muhammadu Buhari to let private firms fund road projects in exchange for tax credits.
According to FAAC’s Post-Mortem Sub-Committee, NNPCL spent $577.6 million and ₦822.3 billion between February 2024 and May 2025. Its final dollar payment came in December 2024, when it remitted $52.5 million. In January 2025, the company switched to naira deductions, paying ₦151.27 billion that month and ₦671.04 billion in April.
These payments came from NNPCL’s Companies Income Tax obligations under Joint Venture gas operations. The Federal Inland Revenue Service then channelled the funds to approved projects. However, FAAC’s records do not include pre-2024 contributions, meaning the company’s total commitment is even larger.
Billions for Key Roads
In late 2021, Phase I began with ₦621.24 billion allocated to 21 roads covering 1,804 km nationwide. Projects included the Ilorin–Jebba–Mokwa/Bokani Junction corridor, the Suleja–Minna road, the Bida–Lambata route, and the Lagos–Badagry Expressway.
Phase II, approved in January 2023, expanded coverage to 44 federal roads spanning 4,554 km. With a ₦1.9 trillion budget, it targeted the East-West Road, the Nembe–Brass Road, the Yola–Mubi–Maiduguri corridor, and parts of the Lokoja–Benin route.
Despite these huge sums, many Nigerians still face bad roads and delayed construction. Critics argue that costs appear inflated and that project selection lacks transparency. Furthermore, they warn that the scheme has strained public finances at a time of high debt servicing and foreign exchange pressure.
Funding Gap and Next Steps
The Works Minister, David Umahi, says ₦3 trillion is now needed to complete the awarded projects. As a result, President Bola Tinubu has directed his ministry to list affected roads and explore Public-Private Partnership models for funding.
While the Ministry of Finance submitted an update in July, the Ministry of Works has yet to provide FAAC with detailed project records. Meanwhile, NNPCL says the exit will free resources for upstream investments, energy transition plans, and other strategic ventures.
Even so, analysts caution that losing one of the scheme’s biggest financiers will create serious funding challenges. Therefore, the success of Nigeria’s remaining road projects may depend on how quickly the government secures alternative funding sources.