President Bola Tinubu’s decisive intervention has quelled anxieties surrounding the potential suspension of funding for crucial road infrastructure projects under the Nigerian National Petroleum Company Limited (NNPCL) Tax Credit Scheme. The President’s directive mandates the continuation of the scheme and ensures prompt payment to contractors, addressing concerns raised by stakeholders, including state governments and contractors, about delayed disbursements that threatened to disrupt ongoing projects vital to Nigeria’s economic connectivity and logistical network. Minister of Works, David Umahi, communicated the President’s commitment to uninterrupted infrastructure development, assuring stakeholders of continuous funding and guaranteeing the completion of all projects. This decisive action aims to restore confidence and maintain the momentum of these critical infrastructure initiatives.
Minister Umahi, in a statement released by the ministry, clarified that the majority of projects funded under the NNPCL Tax Credit Scheme would remain unaffected by the funding concerns. He addressed the apprehension among contractors, particularly those engaged in concession-bound projects, by assuring them that all outstanding debts and entitlements would be settled before these roads are handed over to concessionaires with proven financial capacity and operational expertise. This commitment aims to protect the financial interests of the contractors and ensure the smooth transition of projects to new management. Umahi’s directive for contractors and field officers to return to their sites immediately underscores the urgency of resuming work and maintaining progress on these vital infrastructure projects.
To ensure accurate project data and prevent execution delays, Umahi mandated the submission of updated project documentation, including revised scopes for critical corridors like the Lokoja-Benin Dual Carriageway, within seven days. He emphasized the importance of accurate submissions to avoid misinformation and delays. The minister also addressed the issue of unpaid certificates, stressing the necessity for accurate reconciliation of certified amounts with payments received, inclusive of VAT, other taxes, and a five percent retention fee, all of which are part of the contractors’ rightful entitlements. This rigorous process aims to maintain transparency and ensure accurate payment disbursements to all involved parties.
The Ministry of Works is actively collaborating with NNPCL to clear all outstanding verified certificates earned before August 1, 2025. Significantly, President Tinubu has approved a new sustainable funding mechanism for NNPCL projects commencing from August 1, 2025, ensuring the continuation of these projects without further financial uncertainties. This new funding mechanism is designed to provide long-term stability and support for essential infrastructure development. To oversee this process and ensure accountability, Minister Umahi established a committee comprising representatives from various directorates within the Ministry of Works. This committee will collate and verify all necessary information within the stipulated deadline, further enhancing transparency and accountability within the project management process.
Further reinforcing transparency and accountability, Umahi implemented measures to categorize projects based on their financial scale, directing that projects exceeding N10 billion be reported separately from those below this threshold. This segregation aims to provide clearer oversight and financial management of these significant infrastructure investments. Any unresolved payment issues or financial discrepancies after the seven-day deadline will be escalated, ensuring prompt resolution and maintaining the integrity of the project financing. This meticulous approach to financial management aims to prevent any potential misuse of funds and ensure the efficient utilization of resources for the benefit of the Nigerian people.
Finally, Minister Umahi’s call for stakeholder collaboration emphasized the importance of treating these assignments as a crucial component of Nigeria’s infrastructure revolution under the Renewed Hope Administration. His emphasis on integrity, accountability, and the best interests of the Nigerian people underscored the government’s commitment to responsible and transparent infrastructure development. The invitation for public scrutiny by the press, the National Assembly, and the general public reinforces the government’s commitment to transparency and accountability, ensuring that these crucial infrastructure projects are executed efficiently and for the benefit of all Nigerians.
