$577m Gone! NNPC Walks Away From Controversial Buhari Road Tax Credit Scheme

The Nigerian National Petroleum Company Limited (NNPC) has formally withdrawn from the Road Infrastructure Tax Credit Scheme (RITCS), a signature initiative launched during the administration of the late former President Muhammadu Buhari, after committing a staggering $577.6 million and ₦822.3 billion to the programme within just 16 months, according to iReporter Online.

This landmark exit means the federal government will now require an estimated ₦3 trillion to complete the numerous road projects initially awarded under the NNPC-led tax credit model.

RITCS, introduced in 2019 via Executive Order 007, was designed to allow private sector investors to fund the construction and rehabilitation of key road networks in exchange for tax credits equivalent to their investment.

According to iReporter Online, NNPC’s decision to pull out aligns with its post–Petroleum Industry Act transformation into a fully commercial entity, prioritising profitability and operational efficiency over the quasi-fiscal obligations that once defined its government-mandated spending.

Data from the Federation Account Allocation Committee (FAAC) shows that NNPC’s last dollar payment to the scheme was made in December 2024, with $52.5 million remitted that month.

By the end of that year, cumulative dollar contributions reached $577.6 million, after which deductions reverted to naira payments—₦151.27 billion in January 2025 and a massive ₦671.04 billion in April 2025, bringing the naira total to ₦822.3 billion.

According to iReporter Online, these figures exclude the company’s contributions before 2024, meaning its total historical funding of the scheme could be far higher.

The withdrawal of such a key player has sparked concerns over the fate of several high-profile projects, including the Lagos–Badagry Expressway, the East–West Road, and the Nembe–Brass Road, among others.

Minister of Works David Umahi revealed that President Bola Tinubu has directed the ministry to explore alternative funding models, with a full list of affected projects currently being compiled for reassessment under a Public-Private Partnership framework.

”IREPORTER REPORTS”