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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.
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.”
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.
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).
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.
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.
News
2027: Wike rallies support for Tinubu In Akpor kingdom, Insists He’II resign as Minister should president lose FCT, Rivers(Photos)
The Minister of the Federal Capital Territory (FCT), Nyesom Wike, on Friday declared that his political alignment with President Bola Tinubu remains unshakable, rallying the political structure of Rivers State to consolidate support for the President.
”My interest in Rivers State is for God to use me as a vessel to help our people. I am back here not for what I will get, but for what I will be to raise my people”, Wike declared during a strategic consultative meeting with stakeholders of the Akpor Kingdom in Obio-Akpor Local Government, Rivers State, Wike emphasized that politics is driven by the collective interest of the people rather than perpetual animosity.
He also reiterated his decision to resign his position as Minister should President Tinubu lose in Rivers State and the FCT.
The former governor of Rivers State maintained that expanding the political base is essential for delivering democratic dividends.
He said; “there is no permanent enemy in politics what we have is permanent collective interest.
“It is all about the interest of our people. The more you are in number, the happier you become. Leadership is like a waste dustbin. If you cannot absorb things, both the good and the bad, then you cannot be a true leader.”
Reflecting on the political trajectory that led to his appointment as FCT Minister, Wike noted that working with President Tinubu was an extraordinary milestone that defied political convention.
He stressed that his return to grassroots mobilization in Rivers State is aimed at leveraging his position as a vessel to uplift the state and its people.
”You know how difficult, you know how impossible it looked, but he made it possible for us to produce the Minister of the Federal Capital Territory,” Wike told the gathering.
He charged political actors in the state not to be distracted by social media criticism regarding his open-door policy toward former detractors, asserting that true political strength lies in numerical superiority.
In a fiery charge to local leaders, Wike demanded an all-inclusive campaign structure spanning every stratum of society in Obio-Akpor Local Government Area.
He called on traditional rulers, clergy, and community leaders to unite behind a single political direction.
”Obio-Akpor as a whole, whether you are a politician, whether you are a traditional ruler, whether you are a pastor, or whether you are a native doctor, I need everybody now,” he declared.
Wike said further; “Because all of them will vote. For the purpose of voting and elections, we must bring everyone together. ”
Drawing from his political history as the first elected chairman in the history of Obio-Akpor Local Government to win a second term following its creation in 1989, Wike reminded incumbent council leaders that performance and human connection remain the ultimate yardsticks for re-election.
He stated; “I was not elected two times because I was just Chairman.
“I was elected because people felt the impact of governance and because I related with the people. Anywhere, whether for burial or thanksgiving, I was always identifying with them”.
Outlining the electoral roadmap, the FCT Minister highlighted Wards 15, 16, and 17 in Obio-Akpor Local Government as strategic strongholds capable of deciding electoral outcomes across the local council.
”We have over 200 units across three very important wards Ward 15, Ward 16, and Ward 17. These three wards can defeat ten wards in Obio-Akpor. They are three wards with a difference, and you must utilize them to make that difference,” he instructed.
Wike directed local leaders to immediately deploy unit coordinators and door-to-door canvassers across all polling units, urging them to mobilize their immediate families, in-laws, and neighbors to ensure a decisive victory.
Reiterating his loyalty to his constituency, Wike affirmed that he would remain the state’s “Chief Critic” and guide to ensure elected council officers stay accountable to the electorate.
Wike was accompanied by the Rivers State APC governorship candidate, Kingsley Chinda and other political leaders.
News
Echoes of Wike ‘na our own ‘ song takes over at ongoing Akpor town hall meeting in Obio/Akpor LGA today (Video)
Echoes of Wike ‘na our own ‘song rent the air at ongoing Akpor town hall meeting at Obio/Akpor LGA in Rivers State today.
Watch clip below:
News
Watch moment, traditional rulers present kola to FCT minister Wike at ongoing town hall meeting in Akpor kingdom, Obio/Akpor LGA
A video clip showing traditional rulers presenting kola to FCT minister Nyesom Wike at Akpor in Obio/Akpor LGA in Rivers State has emerged.
Watch:
2027: Wike rallies support for Tinubu In Akpor kingdom, Insists He’II resign as Minister should president lose FCT, Rivers(Photos)
Echoes of Wike ‘na our own ‘ song takes over at ongoing Akpor town hall meeting in Obio/Akpor LGA today (Video)
Watch moment, traditional rulers present kola to FCT minister Wike at ongoing town hall meeting in Akpor kingdom, Obio/Akpor LGA
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