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Revelations surfaced on Sunday, March 9, 2025 that Nigeria’s federal coffers relinquished a staggering $577.6 million in potential tax receipts to the Nigerian National Petroleum Company Limited (NNPCL) under the Road Infrastructure Tax Credit Scheme, spanning February to December 2024.
A meticulous dissection of the Federation Account Allocation Committee (FAAC) Post-Mortem Report for February 2025, secured by Sunday PUNCH, disclosed that $52.5 million was siphoned monthly from the Federal Inland Revenue Service’s Joint Venture Gas Company Income Tax, amassing a total of $577,604,432.08 by year’s end—an accrual that escalated incrementally from $52.5 million in February to $105 million in March, $262.5 million by June, $420 million in September, and the full sum by December.
Enacted through Executive Order 007 of 2019, this initiative empowers private entities to underwrite road development in lieu of tax obligations, alleviating the state’s immediate fiscal load while reshaping the landscape of public-private collaboration—an ambitious gambit now under scrutiny for its long-term implications.
An NNPCL spokesperson conveyed to FAAC that high-level dialogues with the Federal Ministry of Finance persist, aimed at crystallizing the operational contours of this arrangement, with the company underscoring its commitment to engaging senior fiscal stewards to refine the scheme’s execution—a process watched closely as Nigeria navigates economic headwinds.
The report read, “On the issue of Road Infrastructure Tax Credit Scheme, NNPCL representative informed the meeting that the management of the company is engaging with the Federal Ministry of Finance at the top level. He also said that discussion is ongoing and hopes to report the outcome of the engagement
“As of December 2024, the sum of $52,509,484.28 was deducted, bringing the total amount to $577,604,432.08.”
The tax credit programme has been key to funding major road projects without immediate government expenditure.
Read also: Dangote Behind Campaign Against NNPCL – Report Reveals
However, concerns remain over the long-term impact of such revenue forfeitures, especially as the country faces economic pressures.
At its August 2024 meeting, FAAC members called for a suspension of the deductions, emphasising that the responsibility of road construction lies with the Federal Government.
During a Federation Account Allocation Committee (FAAC) plenary convened in Bauchi, delegates pressed the Nigerian National Petroleum Company Limited (NNPCL) to halt additional withdrawals under the Road Infrastructure Tax Credit Scheme until the swirling disputes encircling its legitimacy could be untangled.
They contended that the funds diverted should be recalibrated according to the prevailing Revenue Allocation Sharing Formula and restored to their rightful coffers, asserting that such deductions infringed upon the equitable distribution of national wealth.
In a bid to pierce the veil of ambiguity, the Chairman of the Revenue Mobilisation Allocation and Fiscal Commission dispatched an official entreaty to the Federal Inland Revenue Service (FIRS), seeking a comprehensive ledger of tax credits extended to NNPCL and other entities entwined in the initiative.
