By Atoyebi Nike
The Federal Government is turning to Public-Private Partnership (PPP) arrangements to bridge a funding gap of about N3 trillion required to complete key road projects across the country. This follows the decision of the Nigerian National Petroleum Company Limited (NNPCL) to stop funding under the tax-credit scheme, effective August 1, 2025.
The development was disclosed by the Minister of Works, David Umahi, during a press briefing in Abuja, as reported by the News Agency of Nigeria (NAN). He said President Bola Tinubu has directed the ministry to identify alternative funding models to prevent project abandonment.
“We are compiling a list of all affected projects for consideration under the PPP model. Priority will be given to contractors with proven financial and technical capacity,” Umahi stated.
Under the NNPCL tax credit scheme, the company had funded several critical road projects in exchange for tax offsets, easing pressure on federal budgets. With the firm’s withdrawal, projects such as the 43.6-kilometre Maraba–Keffi dual carriageway now face delays. According to Umahi, only one carriageway and two kilometres of the second will be completed using the remaining N76 billion from NNPCL. The rest will be maintained temporarily.
Providing additional context, the Ministry’s Permanent Secretary, Olufunsho Adebiyi, addressed public concerns about perceived regional bias in road project allocations. He explained that construction costs vary significantly by region due to terrain, groundwater conditions, and material availability. “Building one kilometre of road in Bayelsa could cost ten times more than in Katsina,” he noted.
The NNPCL tax credit initiative had been praised as an innovative solution to Nigeria’s infrastructure funding challenges. Its withdrawal now puts the future of several road projects in question, unless the government secures new financing avenues through private partnerships.
