FG Eyes PPP to Complete N3 Trillion Road Projects Amid NNPCL Pull Out From Tax Credit Scheme

FG is currently eying PPP to complete N3 trillion road projects amid NNPCL pull out from Tax Credit Scheme.

NewsOnline Nigeria reports that the Federal Government is exploring Public-Private Partnership (PPP) alternatives to fund and complete critical road projects across the country following the exit of the Nigerian National Petroleum Company Limited (NNPCL) from its tax-credit scheme.

This move comes after the NNPCL officially ceased further financing under the initiative as of August 1, 2025, creating a funding vacuum estimated at ₦3 trillion.

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Speaking during a press briefing in Abuja, the Minister of Works, David Umahi, revealed that President Bola Ahmed Tinubu had directed the ministry to seek alternative funding options to avoid the abandonment of several key infrastructure projects.

“The Federal Government requires ₦3 trillion to complete road projects awarded under the NNPCL tax credit scheme,” Umahi said, according to the News Agency of Nigeria (NAN). “The Ministry is compiling a list of affected projects, which will be evaluated for PPP execution—especially with contractors who demonstrate solid financial and technical capability.”

Maraba–Keffi Road Project Affected

Umahi also cited the 43.6-kilometre Maraba–Keffi dual carriageway, previously funded by NNPCL, as an example of the projects now affected. He noted that the road has been redesigned using concrete pavement and will now be delivered in phases due to economic constraints.

Only one full carriageway and two kilometres of the second lane will be completed with the ₦76 billion remaining from NNPCL. The unfinished sections will be maintained in the interim.

No Regional Bias in Project Distribution – Works Ministry

Addressing concerns over regional disparities in road project allocations, Permanent Secretary Olufunsho Adebiyi clarified that construction costs vary based on geography and environmental factors.

“You cannot measure equity in kilometre terms alone. Constructing a kilometre of road in Bayelsa might cost the same as ten kilometres in Katsina, due to terrain, groundwater issues, and availability of materials,” Adebiyi explained.

Background: NNPCL’s Exit and Policy Shift

The tax-credit scheme allowed NNPCL to finance federal road infrastructure in exchange for tax waivers—a creative solution that helped offset budget shortfalls. However, the company’s sudden withdrawal has thrown several projects into uncertainty.

The Federal Government is now counting on PPPs to fill this funding gap and ensure the timely delivery of essential road projects nationwide.