NNPC Exits Buhari-era Road Tax Credit Scheme after Paying $577m, N822bn in 16 Months

The Nigerian National Petroleum Company Limited (NNPC) has officially ended its funding of the Road Infrastructure Tax Credit Scheme (RITCS) after paying $577 million and N822 billion over 16 months. The RITCS was a flagship policy introduced during the administration of former President Muhammadu Buhari, allowing private sector participants to finance road infrastructure projects in exchange for tax credits.

The NNPC's exit from the scheme will now allow the national oil company to focus on its core business functions, as the federal government requires N3 trillion to complete road projects awarded under the RITCS. The move comes amid sweeping reforms in Nigeria's oil and gas sector following the enactment of the Petroleum Industry Act, aligning the NNPC with new operational focuses on profitability and efficiency.

Despite facing criticism and concerns over transparency, the NNPC had committed significant resources to the RITCS, funding major road projects across the country. The company's exit from the scheme will now free up resources for upstream investments and.