The Federal Government has forfeited $577.6 million in tax revenue under the Road Infrastructure Tax Credit Scheme to the Nigerian National Petroleum Company Limited (NNPCL) between February and December 2024.
According to the FAAC Post-Mortem Report for February 2025, $52.5 million was deducted each month from the FIRS JV Gas Company Income Tax, amounting to $577,604,432.08 by December 2024.
These deductions were made consistently throughout the year, increasing progressively to the final sum by year-end
Introduced by Executive Order 007 of 2019, the Road Infrastructure Tax Credit Scheme allows private companies to finance road projects in exchange for tax credits, reducing the government’s immediate financial burden.
However, the scheme has sparked concerns, particularly regarding the long-term impact of such revenue losses on the economy.
A representative of NNPCL explained that the company is currently in discussions with the Federal Ministry of Finance to finalize the operational details. “Discussions are ongoing, and we hope to report the outcome soon,” the representative stated.
FAAC members have raised concerns about the ongoing deductions, with some suggesting a suspension until the responsibilities of road construction are clarified.
The issue also prompted a formal request from the Chairman of the Revenue Mobilisation Allocation and Fiscal Commission for detailed information from FIRS on the tax credits granted to NNPCL.
Despite the criticisms, the scheme continues to fund crucial infrastructure projects, including the completion of the Apapa-Oshodi-Oworonshoki-Ojota expressway, and is expected to play a significant role in the completion of more projects in the future.
