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States Angry As NNPCL Deducts $525M From FIRS Remittances For Road Tax Scheme

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By Kayode Sanni-Arewa

The Nigerian National Petroleum Company Limited (NNPCL) has deducted a total of $525.09 million from its remittances to the Federal Inland Revenue Service (FIRS) under the Road Infrastructure Tax Credit Scheme (RITCS), igniting anger among state governments.

According to a Federation Account Allocation Committee (FAAC) report from a January 2025 post-mortem sub-committee meeting, NNPCL made monthly deductions of $52.51 million from funds due to FIRS for Joint Venture Gas and Company Income Tax between February and November 2024.

The RITCS allows private companies to invest in critical road infrastructure in exchange for tax relief.

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However, state representatives at the FAAC meeting objected to the deductions, arguing that road construction is the responsibility of the Federal Government.

In August 2024, FAAC members called for a suspension of the deductions, demanding that their share of the withheld funds be calculated based on the existing revenue-sharing formula and refunded.

During the FAAC plenary in Bauchi, members reiterated their stance, prompting the Chairman of the Revenue Mobilisation Allocation and Fiscal Commission to formally request detailed information from FIRS on the tax credits granted to NNPCL and other companies under the scheme.

According to the report, “The Sub-National position was that it is the responsibility of the Federal Government to construct roads; hence, the share of the Sub-National should be computed based on the existing Revenue Allocation Sharing Formula and refunded to them.”

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The Road Infrastructure Tax Credit Scheme has been instrumental in projects such as the 32-kilometre Apapa-Oshodi-Oworonshoki-Ojota expressway.

However, state governments are now pressing for transparency and a resolution regarding the deductions.

The RITCS was introduced by the Nigerian government to encourage private sector investment in critical road infrastructure.

Under this scheme, companies can fund road construction or rehabilitation projects in exchange for tax credits, which reduce their tax liabilities. This approach aims to accelerate infrastructure development while easing the burden on public finances.

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Why Did NNPCL Deduct $525 Million?

NNPCL deducted a total of $525.09 million from its remittances to FIRS over 10 months (February to November 2024) under the RITCS. The funds were meant to cover investments in road infrastructure, allowing NNPCL to offset these expenses against its Joint Venture Gas and Company Income Tax obligations.

State governments have expressed strong opposition to these deductions for several reasons.

For instance, states argue that the deducted funds should have been part of the revenues shared among the three tiers of government (federal, state, and local) through the Federation Account Allocation Committee (FAAC).

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They demand their share of these funds, calculated using the existing revenue-sharing formula.

States contend that road construction is primarily the responsibility of the Federal Government. They question why funds meant for revenue distribution are being used for federal infrastructure projects.

Meanwhile, there is a demand for greater transparency regarding the tax credits granted under the RITCS, particularly to NNPCL and other companies.

During meetings, including the January 2025 post-mortem sub-committee and a plenary in Bauchi, FAAC members reiterated their opposition to the deductions.

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They demanded a suspension of the practice and a refund of the withheld funds. Consequently, the Chairman of the Revenue Mobilisation Allocation and Fiscal Commission requested detailed information from FIRS about the tax credits granted under the scheme.

The RITCS has been crucial in financing major infrastructure projects, such as the 32-kilometre Apapa-Oshodi-Oworonshoki-Ojota expressway.

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‘We Need Help Now’ — Nigerians Trapped in South Africa Appeal to Tinubu

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As the Malawian government moves to evacuate its citizens from South Africa following renewed xenophobic attacks, Nigerians caught in the unrest have expressed frustration over what they describe as a lack of support from their home country.

Chairman of the Pentecostal Fellowship of Nigeria (PFN) in Gauteng, South Africa, Ikye Okwuakwu, has called on President Bola Ahmed Tinubu to urgently intervene and assist Nigerians affected by the crisis.

Speaking amid reports that thousands of foreign nationals have been displaced and are currently sheltering in temporary camps, Okwuakwu questioned Nigeria’s response to the situation.

“Malawi is taking its people home. What is Nigeria doing for its own citizens?” he asked.

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He urged the Federal Government to take immediate steps to protect and support Nigerians stranded in South Africa, warning that many are facing uncertainty and hardship as tensions persist in affected communities.

The appeal comes as concerns continue to grow over the welfare and safety of foreign nationals impacted by the wave of xenophobic violence in parts of South Africa.

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Wait for 2027, Presidency Tells Peter Obi Amid Calls for Tinubu’s Resignation

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The Presidency has strongly criticised Labour Party presidential candidate, , over his recent call for President to resign, describing the demand as “childish, hollow, and an unwarranted distraction.”

In a statement issued on Monday, Special Adviser to the President on Information and Strategy, , accused Obi of drawing a misleading comparison between Nigeria’s presidential system and the United Kingdom’s parliamentary system in advocating for Tinubu’s resignation.

Onanuga argued that President Tinubu was elected to a fixed four-year term and should be judged through the electoral process rather than calls for resignation on social media. He pointed to recent election victories recorded by the ruling party in Ekiti, Nasarawa, Enugu, Ondo and Rivers states as evidence of public support for the President and his administration.

The presidential aide also defended the administration’s handling of security, stating that the government had intensified military operations, rescued hundreds of kidnapped victims and neutralised thousands of terrorists since Tinubu assumed office in 2023.

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On the economy, Onanuga maintained that key indicators showed progress under the current administration. He cited improvements in oil production, increased government revenue, growth in foreign reserves, rising investor confidence and gains in the stock market as signs that the economy was recovering from longstanding challenges.

The Presidency further highlighted infrastructure projects, including the Lagos-Calabar and Sokoto-Badagry superhighways, as well as reforms in the power sector and student loan programme, as evidence of the administration’s commitment to development.

Responding to Obi’s criticisms of electricity supply and the cost of living, Onanuga argued that the government had taken steps to expand power generation and reduce estimated billing through the rollout of prepaid meters. He also attributed current economic pressures partly to global developments, including tensions in the Middle East and their impact on commodity prices.

The statement concluded with a sharp rebuke of Obi, accusing him of misrepresenting the country’s situation and failing to acknowledge what the Presidency described as the achievements of the Tinubu administration.

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According to Onanuga, President Tinubu remains focused on reforms, economic stabilisation, security improvements and long-term development, insisting that Nigeria is on a path of progress under his leadership.

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Tinubu Appoints Former UNILAG VC Ogundipe as NUC Governing Board Chairman

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President Bola Ahmed Tinubu has approved the appointment of former Vice-Chancellor of the University of Lagos (UNILAG), Oluwatoyin Temitayo Ogundipe, as Chairman of the Governing Board of the National Universities Commission (NUC).

The appointment, announced on Monday by the President’s Special Adviser on Information and Strategy, Bayo Onanuga, takes immediate effect.

Prof. Ogundipe succeeds Olufemi Raphael Aina, who resigned from the position after serving for less than a year. Aina had been appointed by President Tinubu in July 2025, while the NUC Governing Board was inaugurated in November 2025.

A renowned professor of Botany, Ogundipe served as Vice-Chancellor of the University of Lagos from 2017 to 2022. His academic career spans decades, with expertise in molecular plant taxonomy, biosystematics, ethnobotany, cytogenetics, forensic botany and ecological conservation. He also holds an MBA from UNILAG and currently serves as Pro-Chancellor of Redeemer’s University, Ede, Osun State.

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According to the Presidency, the new NUC chairman is expected to provide strategic leadership for Nigeria’s university regulatory agency, with emphasis on improving funding, strengthening academic standards, enhancing global competitiveness and promoting stability across the nation’s tertiary education system.

The appointment is in line with the Tinubu administration’s Renewed Hope agenda, which seeks to expand access to quality higher education while reinforcing integrity and excellence within Nigeria’s university system.

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