The Nigerian National Petroleum Company Limited (NNPC) recorded a 10,374 per cent increase in income from road infrastructure tax credits in 2025, rising from N887,000 in 2024 to N92.901 million.
An analysis of the company’s 2025 audited financial statements showed that the increase occurred as NNPC moved away from directly financing inherited Federal Government road projects under the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme.
The scheme was introduced in 2019 through Executive Order 007 to encourage private companies to fund road construction and rehabilitation in exchange for tax credits against their Companies Income Tax liabilities.
Participating companies could also receive an additional financial benefit, known as uplift income, calculated using the Central Bank of Nigeria’s monetary policy rate plus 25 per cent of the approved project cost.
NNPC’s financial statements classified the N92.901 million as road infrastructure tax credit uplift income. However, the amount represents the additional benefit recognised under the scheme, not the company’s total expenditure on road construction.
The company’s decision to stop directly funding inherited road projects in August 2025 prompted the Federal Government to seek alternative financing arrangements to ensure that ongoing projects were completed.
Works Minister David Umahi said President Bola Tinubu had directed that the inherited projects be continued under a revised funding structure. The government subsequently began reviewing and reprioritising the projects while requiring contractors to utilise available funds for verified work.
The Federal Government formally discontinued the broader road tax credit scheme in February 2026, with the Nigeria Revenue Service announcing that companies would no longer be permitted to finance road projects through the arrangement.
The government’s position was that tax administration should remain separate from public spending decisions, with road construction and rehabilitation funded through established government financing mechanisms.
Meanwhile, NNPC’s other income increased substantially in 2025. At the group level, other income rose to N8.416 trillion from N3.392 trillion in 2024, representing an increase of approximately 148.2 per cent.
The company’s own other income also climbed to N8.061 trillion from N3.759 trillion, a rise of about 114.5 per cent.
These figures included several revenue sources beyond the company’s core operations, such as management fees, dividend income, crude oil stock valuation gains and sundry income.
Despite the sharp percentage increase in road tax credit uplift income, the N92.901 million remained a small component of NNPC’s overall other income.
The development comes as the Federal Government works to secure alternative funding for inherited road projects previously supported by the tax credit scheme, while addressing outstanding obligations to contractors and maintaining infrastructure delivery.
