In a strong move to salvage critical road infrastructure projects under threat, President Bola Ahmed Tinubu has stepped in to restore confidence in the Nigerian National Petroleum Company Limited (NNPCL) Tax Credit Scheme. The President’s intervention comes amidst growing concerns over delayed payments and the looming suspension of key road projects nationwide.
The Tax Credit Scheme, established to fast-track infrastructure using private sector funding, has financed hundreds of kilometers of roads across Nigeria. However, recent delays in disbursements triggered panic among contractors, stakeholders, and several state governments relying on the scheme to drive regional connectivity and economic growth.
In a high-level directive delivered through the Minister of Works, Engr. David Umahi, President Tinubu has assured that all outstanding payments due to contractors will be settled promptly. The President also ordered that all affected project sites must resume full operations immediately.
According to a press release issued by Mohammed Ahmed, Director of Press and Public Relations at the Ministry of Works, President Tinubu has made it clear that no project under the NNPCL Tax Credit Scheme will be abandoned. The President emphasized his commitment to infrastructural development as a cornerstone of his Renewed Hope Agenda.
Key Highlights of the Intervention:
Uninterrupted Funding Assured: President Tinubu has mandated the continuation of all ongoing NNPCL-funded road infrastructure projects with a new sustainable funding mechanism starting from August 1, 2025.
Immediate Payment Resumption: Contractors with verified certificates prior to August 1 are to be paid without further delays.
Project Verification and Oversight: A high-powered committee has been inaugurated to verify data and supervise contractor claims.
Seven-Day Deadline: All contractors must submit revised scopes and updated project documentation for major corridors like the Lokoja–Benin Dual Carriageway within one week.
Nationwide Inspections: Zonal directors, federal controllers, and NUJ members will conduct physical site inspections and commission completed projects.
Minister Umahi emphasized transparency and fiscal discipline, stating that projects valued above ₦10 billion will be isolated for special reporting. He warned that any financial discrepancy or unresolved payment issue beyond the seven-day deadline would be escalated.
He also called for accuracy in submitted project data to avoid misinformation and urged contractors to reconcile all certificates with actual payments received, factoring in VAT, taxes, and retention fees.
Infrastructure experts and analysts have applauded the President’s decisive move, noting that halting projects under the tax credit model could have severely impacted national logistics, business operations, and investor confidence.
A Lagos-based civil engineer, Engr. Dominic Olubayo, said, “The NNPCL tax credit model is arguably one of the most effective public-private partnerships Nigeria has implemented in recent years. Tinubu’s assurance of continuity is a strong signal to investors and developers alike.”
Transportation analyst, Fatima Odunsi, also praised the presidential intervention, adding, “This step aligns with international best practices. Infrastructure investment should be shielded from political and bureaucratic setbacks.”
Some of the projects affected include key expressways across the South-East, North-Central, and South-West regions, with far-reaching implications for freight movement, interstate trade, and emergency response.
Contractors, especially those involved in concession-bound roads, were also assured of full payment before handing over to concessionaires. Minister Umahi noted that private concessionaires must provide proof of capacity and funding before taking over any project.
With Nigeria’s infrastructure gap still significant, the reaffirmation of the NNPCL Tax Credit Scheme under Tinubu’s leadership is expected to stabilize the ongoing development trajectory. The federal government aims to continue expanding road, rail, and logistics corridors to spur economic diversification and regional integration.
As Umahi concluded during the engagement, “We are building with integrity, accountability, and in the best interest of the Nigerian people. Let the press, the public, and the National Assembly inspect our work. This is the Renewed Hope era in action.”