The Federal Government has allocated N127 billion to sustain and continue road projects previously financed by the Nigerian National Petroleum Company Limited (NNPCL). The announcement was made by the Minister of Works, David Umahi, in a statement published on the ministry’s website on Friday.

The fund release comes after NNPCL officially withdrew from the tax-credit road scheme on August 1, 2025. The Federal Ministry of Works has now assumed full responsibility for supervising and paying contractors on these projects.

Minister Umahi explained that the funding is intended to prevent delays and keep ongoing works on key road corridors moving. “The NNPCL will no longer directly pay contractors for these projects. The Ministry of Works is now fully in charge of both supervision and payments,” he said.

The Minister also highlighted operational challenges affecting road infrastructure, including vandalism, flooding from blocked drainage channels, and structural damage caused by heavy trucks parking on bridges. He added that the Bodo–Bonny Road will be extended by 8.7 kilometres to connect to the East–West Road.

Back in August 2025, the government considered Public-Private Partnerships (PPP) to complete major road projects, initially estimated at N3 trillion. Recent updates show that finishing all former NNPCL-funded projects nationwide will now require approximately N7 trillion. President Bola Ahmed Tinubu has directed the Ministry to explore alternative funding options and prioritize contractors with strong technical and financial capacity.

The Federal Government has officially ended the use of corporate tax credits to fund road construction, stating that such projects must go through proper budgetary and legislative approval.

The Nigeria Revenue Service also confirmed that while the tax-credit scheme was well-intentioned, it conflicted with financial regulations and the agency’s technical capacity to assess infrastructure projects.