The Nigerian National Petroleum Company Limited (NNPC) has withdrawn from the Road Infrastructure Tax Credit Scheme (RITCS), a programme introduced by the late former President Muhammadu Buhari to fund key highways through private sector tax offsets.

FAAC data shows the oil giant spent $577.6 million and N822.3 billion on the initiative over 16 months. Its exit now leaves the federal government with a N3 trillion gap to complete ongoing projects.

Launched in 2019 via Executive Order 007, the RITCS allowed private firms to finance major road works in return for equivalent tax credits. NNPC emerged as the biggest participant, funding roads in all six geopolitical zones.

In the first phase (2021), it committed N621.24 billion to rebuild 21 critical routes, including the Lagos–Badagry Expressway, Ilorin–Jebba–Mokwa/Bokani Junction, Suleja–Minna, and Bida–Lambata roads. A second phase in 2023 added 44 more roads totalling 4,554 km, valued at N1.9 trillion.

Despite these commitments, several roads remain in poor condition, sparking concerns over transparency, inflated costs, and fiscal pressure.

According to FAAC, NNPC’s final dollar contribution—$52.5 million—was in December 2024. From January 2025, payments were made in naira, including N151.27 billion in January and N671.04 billion in April.

Officials say the withdrawal is part of NNPC’s shift, under the Petroleum Industry Act, towards core oil business operations and profitability, reducing non-commercial spending.

Works Minister David Umahi disclosed that President Bola Tinubu has directed a review of all affected projects and plans to seek alternative funding through public-private partnerships.