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Tax Credit: NNPC’s  N1.6trn quest to fix Nigerian roads

Group Chief Executive Officer of the Nigerian National Petroleum Company Ltd, NNPCL, Mallam Mele Kolo Kyari, inspecting rehabilitation work progress on the Lagos-Badagry Road, as part of the 21 roads funded by the NNPC Limited under the FG’s Federal Roads Infrastructure Tax Credit Scheme.
Bayo Amodu
While Nigeria boasts of the largest road network in Africa, only about 60,000km out of its estimated 195,000km road network is paved. Some of the roads are either in a state of disrepair, poorly maintained or altogether untarred.
As part of the Federal Government’s efforts to improve the condition of road infrastructure and transportation in the country, it introduced Executive Order 007 which was signed by President Muhammadu Buhari on January 25, 2019.
The instrument brought about the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme with the objective to unlock funding from the private sector for critical road infrastructure in the country.
Executive Order 007 was designed to empower private companies to finance the construction or refurbishment of federal roads designated as “Eligible Roads” under the scheme and recoup their investments through the deduction of the approved total costs expended on the project from their annual Companies Income Tax.
The Road Infrastructure Scheme is a Public-Private Partnership (PPP) intervention that enables the Federal Government to leverage private sector capital and efficiency for the construction, and refurbishment of critical road infrastructure in key economic areas in Nigeria.
Participants under the arrangement were entitled to utilise the total cost, referred to as “Project Cost”, incurred in the construction or refurbishment of an eligible road as a tax credit against their future Companies Income Tax (CIT) liability until full cost recovery is achieved.
Like any other responsible corporate citizen, the NNPC prioritizes road infrastructure as part of its Corporate Social Responsibility (CSR) Projects and became one of the companies that have keyed into the initiative.
The NNPC had expressed interest to invest in the reconstruction of selected federal roads in order to sustain a smooth supply and distribution of petroleum products across the country.
A few months after announcing the release of N621 billion to revamp selected Nigerian roads, the company is planning to invest over N1 trillion for a similar purpose. In the first phase, the NNPC was expected to construct a total of 1,804.6 kilometres of roads at a total cost of N621,237,143,897.35, with the North-central getting the highest chunk of N244.87 billion and the South-south emerging the second highest beneficiary of the NNPC roads project with the sum of N172.02 billion.
In addition, the South-west has a total allocation of N81.87 billion; it’s N56.12 billion for the North-East, while the South-East has N43.28 billion allocation.  The North-west was allocated N23.05 billion.
The Group Chief Executive, NNPC Limited, Mallam Mele Kyari, said during a tour of roads in the North-central and South-west, along with the Chief Executive of the Federal Inland Revenue Service (FIRS), Muhammad Nami and top officials of the Ministry of Works and Housing, that in the coming months, Nigerian road users will experience substantial comfort when commuting.
Also, among the roads visited by Kyari were the one in Niger State where he carried out an assessment of the reconstruction of the Bida-Lambata road in the state, with a length 124.81km and the Lagos-Badagry expressway along the Agbara junction and Nigeria/Benin border.
Under the scheme, the road projects will be funded by NNPC and the equivalent amount deducted by the Federal Inland Revenue Service from the National Oil Company’s tax obligations. Through the scheme, the NNPC will be serving as an enabler for building the Nigerian economy and it is collaborating with key stakeholders such as the Ministry of Works and the FIRS on the execution of the initiative.
The company said this is in response to the plight faced by petroleum products marketers in transportation which affects nationwide distribution.
Interestingly, NNPC Ltd is involved in operations across the oil and gas value chain from exploration and production of hydrocarbon and processing of natural gas to nationwide distribution of petroleum products such as petrol, diesel, and kerosene.
The NNPC’s assets base and operations span across different regions of the country and the oil and gas industry has remained one of the biggest and most important economic drivers through foreign and domestic investments.
Kyari further stated that the NNPC was taking cognisance of the importance of road infrastructure to the development of the Nigerian economy, explaining that it is the reason it is investing massively in road infrastructure.
He termed the programme a game changer in the federal government’s quest to scale up infrastructure projects in the country, noting that the NNPC will continue to support any effort of the government aimed at growing the Nigerian economy.
The GCEO expressed satisfaction with the progress of work so far done in the project sites visited, adding that the NNPC had done its part in releasing all the funds needed for their execution.
He said, “We are very happy about the state of this road development. We are very happy with this intervention across the country not just in this place. We are doing 1,800km across the country. We are taking another set of over N1 trillion of investments in road infrastructure in the country. We believe that this tax credit system that Mr President has put in place is the game changer for our country.
”We believe that in the next 24 months, there will be a massive change to the entire road network in this country and this is why NNPC is your company and working for all of us.
“We think that it is the best way to intervene and bring up our infrastructure. We are adding another set of cash, we have not reached the final numbers, but I know it is over N1 trillion.’’
Kyari stated that the quality of work was top-notch, revealing that the consultants deployed during Buhari’s stint at the Petroleum Trust Fund (PTF), were handling the jobs. “We are using the same consultants in partnership with the Federal Ministry of Works and the FIRS to make sure that this works for all of us and we can see from the quality of work. This is the best framework for delivering infrastructure in the country. We are funding partners. We are development partners and enablers. So, whatsoever the FIRS and the ministry of works approve for us, we will consider from our cash flow and fund them,” he assured.
The Director, Roads, Ministry of Works, Folorunso Esan, said through the intervention, the NNPC has been able to improve the pace of the project from 10 per cent to about 40 per cent within a very short period.
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Stakeholders kick against renewal of ETO contract with TTP as NPA reviews agreement 

Funso OLOJO, Editor 
There is a groundswell of opposition among maritime stakeholders against any plan for  renewal of Electronic Call- Up System, otherwise called ETO,
contract with the Truck Transit Park(TTP).
TTP company was the pioneer contractor engaged by the Nigerian Ports Authority (NPA) in February 2021  to drive the e- call up system at its commencement at the Nigerian ports.
However, the five- year contract expired last February while the NPA is set to review the contract again.
While the TTP have started lobbying the NPA management to get a renewal of the lucrative contract, stakeholders have called on the agency to shun the request of the contractor and instead give it out to a more competent company which is not suseptible to corruption.
The stakeholders argued that, though the electronic truck movement system was a laudable initiative but was married by fraud , corruption and gross  inefficiency as the TTP officials used the system to extort truckers.
The Council of Maritime Transport Unions and Associations (COMTUA) has expressed strong opposition to the contract renewal, citing allegations of fraud, extortion, and inefficiency in the TTP.
COMTUA noted that the system has caused financial burden and, at times, worsened, rather than improved, the waiting times for trucks.
COMTUA  therefore urged  the NPA to consider other more efficient solutions for managing port access.
Stakeholders readily pointed to the plate number and ticket frauds which rocked the system
During the crisis period, plate number and cloning fraud emerged as major methods used to sabotage the Electronic Call-up System (“Eto”) at Nigerian ports, enabling unapproved trucks to gain access to port terminals.

Syndicates and fraudulent truckers have been caught using fake, duplicated, or borrowed license plates to match Eto tickets, a practice that undermined the automated system intended to manage traffic congestion

Truckers often duplicate the plate number of a vehicle with a valid Eto ticket and attached it to an unauthorized truck.

Fraudsters engage in “proxy booking,” where they generated tickets for fake or non-existent trucks and then use those tickets for other vehicles by swapping plate numbers at the gate.

Due to the scarcity of spots,, valid Eto tickets were frequently resold at inflated prices (up to ₦450,000 against a ₦21,000 official rate), with the forged plate numbers used to bypass security checks.

The Nigerian Ports Authority (NPA)  intercepted hundreds of fake plate numbers and counterfeit Minimum Safety Standard (MSS) stickers in single raids, particularly around the MPS pre-gate in Apapa.

It was these and other fraudulent acts perpetrated under the management of ETO by the TPP that made stakeholders to advised the NPA not to renew the contract with the company.

“Renewal of the TPP contract will be a monumental error by the NPA because the company used the system to extort and overburdened the truckers.

A more competent company should be engaged to drive the process”  one of the truckers union executives told our reporter.

However, the NPA has reaffirmed its dedication to a “congestion-free” port environment and is actively assessing the performance of the Eto system.

The agency emphasized that the electronic call-up is now a cornerstone of their digital agenda, aimed at increasing transparency and minimizing human interaction.

The review process is ongoing, with significant pressure from stakeholders to either continue with the current system (with improvements) or seek a new, more efficient solution to maintain sanity on the Apapa and Tin Can Island port access road

But the Authority  has assured port users and industry stakeholders that there will be no disruption to operations as it reviews the expired agreement governing the Electronic Truck Call-Up System (ETO)

The contract between the NPA and Truck Transit Park Ltd (TTP), which manages the ETO platform, reached its term at the end of February and is currently under review.

Nevertheless ,the Authority has moved swiftly to calm concerns, emphasizing that port efficiency and seamless cargo movement remain top priorities.

In a statement, the NPA’s General Manager, Corporate Communications, Ikechukwu Onyemekara, said there are clear provisions within the expired agreement to guarantee operational stability.

“There are options under the expired agreement to be adopted to ensure that necessary arrangements are in place for business continuity by the parties that would ensure that operations are not disrupted in any way,” Onyemekara said.

He described the review as a routine administrative process consistent with global best practices, noting that the Authority is committed to safeguarding the gains recorded since the introduction of the digital call-up system.

The ETO platform was introduced in 2021 at the height of the Apapa gridlock crisis to regulate truck movement into the Lagos ports corridor.
By requiring pre-booked access slots before trucks approach the ports, the system restored order to the once chaotic logistics chain and significantly reduced traffic congestion along port access roads.
Industry observers noted that under the NPA’s supervision, the digital regime has contributed to improved cargo evacuation, enhanced vessel turnaround time, and greater predictability in port operations.
They however warned that renewing the contract with TTP will reverse the gains of the system and stagnate the process of electronic movement of trucks in and out of the Ports.
While the review process continues, the NPA has reiterated its commitment to transparency, efficiency, and stakeholder engagement in determining the next phase of the call-up system.
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National Single Window, a marriage of strange bed fellows that may change nothing in cargo clearance process – Segun Musa 

Funso OLOJO, Editor 
A maritime expert and the National Vice President of the National Association of Government Approved Freight Forwarders (NAGAFF), Dr Segun Musa, has taken a swipe at the celebrated National Single Window(NSW) programme of the Federal government, describing it as a ‘mere jamboree’ that may not have the desired impact on cargo clearance process at the Port.
Dr Musa, who was the guest at the weekly Maritime Reporters Association of Nigeria (MARAN) roundtable discussion programme held on Wednesday, February 4th, 2026, at Apapa , Lagos,said the NSW is like ‘an ordinary shell that houses different agencies’ that don’t have equal efficiency in trade facilitation.
He noted that SW is like a chain and it will be as strong as it’s weakest link.
The NAGAFF chief observed that if all the participating agencies are not ready and their operations are not automated, the whole essence will be a waste of time and resources because, according to him, one of the agencies in the link  can delay the process due to inefficiency.
” What is the level of competence and efficiency of the participating agencies?
“If all of them are warehoused in a single window, an incompetent agency among them could frustrate the process.
“So let nobody deceive us that there’s going to be one single window that it’s going to be a game changer that will facilitate trade and everything will just be moving. It’s never true” Musa declared.
It could be recalled that the Federal government has fixed March 27th, 2026 as the official date for the launch of the first phase of the NSW.
On African Continental Free Trade Area (AfCFTA), Dr Musa said the programme would not deliver meaningful impact for Nigeria without clearly defined, holistic and measurable policies to drive its implementation, criticizing what he described as Nigeria’s ceremonial participation in the programme.
According to him, genuine participation under AfCFTA should reflect in export volumes and measurable benchmarks rather than media showcases of minimal shipments.
“If we were serious under this scheme, we should be talking about exporting 200,000 to 300,000 containers by now — even up to a million.
” Instead, we are celebrating one or two containers and gathering media houses to showcase them. Is that participation? It’s painful for a country of this size,” he said.
Musa argued that policy frameworks must be predictive and structured in a way that allows stakeholders to key into them with certainty of outcomes.
“A policy must be holistic. You should be able to key into it and predict what will happen. That is the essence of policy. What we are doing now is a waste of time and resources,” he stated.
Responding to question on policy gaps and measurable benchmarks required to reposition Nigeria under AfCFTA, Musa maintained that the challenge was not the absence of declarations but the lack of institutional readiness and structured participation.
He further compared Nigeria’s export performance with that of Europe and Asia, noting that serious trading economies focus on volume and competitiveness rather than symbolic shipments.
The maritime expert expressed concern that without concrete benchmarks, coordinated institutional reforms and export-driven strategies, Nigeria may struggle to maximise opportunities under AfCFTA.
The roundtable ended with renewed calls for actionable policies, institutional competence and measurable targets to ensure that the continental trade agreement translates into tangible economic gains for the country
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Indigenous maritime investors seek partnership with NIWA for mutual development of inland waterways 

Gloria Odion, Maritime Reporter 
A coalition of indigenous maritime tourism and transportation investors has pledged to unlock strategic investment opportunities aimed at developing Nigeria’s vast but largely untapped maritime tourism economy for the benefit of littoral communities in Lagos and across the country.
The group, Allied Concessionaires and Blue Economy Alliance, made the commitment during a courtesy visit to the Lagos Area Manager of the National Inland Waterways Authority (NIWA), Engineer Sarat Braimah, on Tuesday at the NIWA Lagos Area Office.
Speaking during the visit, Chairman of the coalition, Bolaji Olasade, explained that the alliance is made up of reputable and experienced maritime tourism and transportation operators committed to redefining waterfront recreation and hospitality by integrating safe and efficient water transportation systems.
 He noted that the initiative is designed to create jobs, boost coastal tourism, and expand economic opportunities within Lagos and beyond.
“We came to formally introduce our coalition, which is not a conventional association but a consortium of visible and tested operators, mostly concessionaires, who are willing and ready to collaborate with NIWA to grow and develop inland waterways tourism infrastructure.
“We are also focused on opening up littoral communities through destination marketing and the promotion of resorts,” Olasade stated.
He added that the group seeks to reposition Nigeria’s brown water and blue economy sectors by transforming the country’s waterfront hospitality and tourism landscape into a globally competitive industry.
In her remarks, the Secretary of the coalition, Barrister Dorcas Aderemi, emphasized that the Nigerian marine and blue economy sector can only thrive when the inland waterways ecosystem is strategically aligned for sustainable investment and funding.
She called for a structured public-private partnership model between the private sector and NIWA to fast-track development and enhance inland waterways utilization.
According to her, such collaboration would not only stimulate economic growth and job creation but also significantly boost government revenue and national development.
The group commended Engineer Braimah for her leadership and commitment to industry growth, particularly her zero-tolerance stance on boat transportation accidents and security infractions on inland waterways in Lagos.
They also congratulated her on her recent Nelson Mandela Pan-African Leadership Award, describing it as a testament to her dedication to national service.
Responding, Engineer Braimah welcomed the delegation and expressed appreciation for their interest in partnering with NIWA.
She assured them of the Authority’s willingness to collaborate in unlocking opportunities within the inland waterways corridor in Lagos and across Nigeria.
“We are pleased to receive you and have listened carefully to your intentions to collaborate with us.
“We recognize that NIWA cannot achieve its mandate alone without the private sector, especially serious investors with genuine financial commitments to the industry.
“We will communicate your proposals to our headquarters in Abuja to explore how your group can leverage existing opportunities,” she said.
The Area Manager further highlighted the need to modernize inland water transportation by introducing new boats and ferries to gradually phase out outdated watercraft, thereby enhancing safety, efficiency, and value across the waterways transportation and hospitality sectors.
She concluded by urging the coalition to remain united, avoid internal conflicts, and focus on delivering meaningful impact, particularly for littoral communities that must be actively engaged and empowered to benefit from maritime tourism and transportation opportunities within their environment.
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