The Nigerian National Petroleum Company Limited (NNPC Ltd) has formally exited the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme—an initiative launched under the Buhari administration—after investing a total of $577.6 million and ₦822.3 billion over 16 months.
This development marks a significant policy and operational shift for the state-owned oil giant, which says it will now redirect its focus toward its core commercial and energy operations amid growing pressure to improve profitability and efficiency in the post-Petroleum Industry Act (PIA) era.
The Road Infrastructure Tax Credit Scheme, introduced in 2019, allowed private companies to fund critical road projects in exchange for tax credits. NNPC became the biggest single contributor to the initiative, partnering with the Federal Ministry of Works and Housing to rehabilitate major highways across the country, including key economic corridors such as the Lagos-Badagry Expressway, Abuja-Kaduna-Zaria-Kano Road, and the East-West Road in the Niger Delta.
While the program helped accelerate long-delayed infrastructure work, NNPC’s exit now leaves a significant funding gap. According to federal officials, an estimated N3 trillion will be required to sustain and complete ongoing road projects previously underwritten by the scheme.
Government sources confirmed that alternative financing models are being explored, including public-private partnerships (PPPs), sovereign infrastructure bonds, and direct budgetary allocations. The Federal Ministry of Works is expected to unveil a revised roadmap in the coming weeks.
Industry analysts say the NNPC’s withdrawal underscores the company’s strategic transformation into a fully commercial entity, as outlined by the PIA. Since its incorporation as a limited liability company in 2021, NNPC has increasingly emphasized operational efficiency, global competitiveness, and a gradual retreat from non-core, quasi-governmental roles.
“This is a natural progression for a company that’s repositioning itself to compete globally,” said Dr. Amina Yusuf, an energy economist at the University of Lagos. “The infrastructure scheme served a national purpose, but it’s time for NNPC to concentrate on upstream investments, refining, and alternative energy development.”
Critics of the tax credit scheme had raised concerns over transparency, the burden on future government revenues, and whether the model offered long-term value for taxpayers. However, supporters argue it filled a critical infrastructure funding void during periods of fiscal constraint.
The Ministry of Finance and the Federal Inland Revenue Service (FIRS) are expected to conduct a final audit of NNPC’s tax credits and investments under the program to ensure compliance with relevant laws and fiscal rules.
As Nigeria continues to grapple with deteriorating infrastructure and a growing budget deficit, the government’s ability to attract new sources of capital for road development may prove decisive in maintaining momentum on its national infrastructure agenda.
