FG Disburses ₦127bn to Sustain Former NNPCL Road Projects
The Federal Government has released ₦127 billion to sustain critical roadworks on projects previously funded under the Nigerian National Petroleum Company Limited’s (NNPCL) tax-credit scheme, as it formally takes over supervision and financing responsibility.
The disclosure was made by Minister of Works, Senator David Umahi, who confirmed that President Bola Ahmed Tinubu approved the payment as part of efforts to maintain momentum on infrastructure works across the country.
Government Takes the Helm
The road projects in question were originally financed through a tax-credit arrangement under Executive Order 007, issued in 2023, whereby NNPCL funded federal road and bridge works on behalf of the government. However, with the withdrawal of the arrangement from August 1, 2025, the administration has now restructured the responsibility framework and the Federal Ministry of Works has officially assumed both project supervision and payment duties.
Minister Umahi stated that the ₦127 billion release will ensure ongoing construction activities do not stall, avert further delays and uphold the government’s commitment to delivering essential road infrastructure.
Scope and Challenges Ahead
According to the Ministry, about 6,604 federal road and bridge projects were inherited from the previous NNPCL arrangement, with a projected ₦16.9 trillion required to complete them in full. Of this, it is estimated that roughly ₦7 trillion will still be needed after the recent release to see all ongoing works through to completion.
These projects, according to officials, are strategic to improving national connectivity and unlocking economic opportunities across regions. Umahi reiterated that the roads form vital corridors for commerce, transport and inter-state mobility.
Key Project Highlights
Among the legacy road works under continuation include:
- Bodo–Bonny Road Extension: The President has also directed the extension of this road by approximately 8.7 km to link with the East–West Road using concrete paving, a move expected to enhance accessibility in the oil-rich Rivers State region.
- Akwanga–Jos–Bauchi–Gombe–Maiduguri Corridor: Progress continues on this critical corridor, which serves as a backbone for northern economic activities.
Looking Forward
While the release of ₦127 billion is seen as a significant step toward avoiding project stagnation, stakeholders note that the scale of funding required to complete all former NNPCL-funded road projects remains substantial. Continued budgetary releases and efficient project management will be key to realizing the administration’s infrastructure goals.
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