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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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Omatseye blows hot as he maintains stance over CVFF dollar to naira conversion controversy.

Dayo Mobereola, Temisan Omatseye

— claims he left N52 bn in fixed deposit at his exit in 2010

Funso OLOJO, Editor

The last may not have been heard about the war of words between the two helmsmen at the Nigerian Maritime Administration and Safety Agency (NIMASA) over the alleged controversial conversion of the dollar component of the Cabotage Vessels Financing Funds (CVFF) into Naira.

Temisan Omatseye, the former Director General of NIMASA from July 2009 to December 2010, had claimed that the Agency converted the dollar remittances into the CVFF pool into Naira for higher interest rates.

Temisan made this claim at a public function in Lagos where he was speaking on the controversial CVFF delayed disbursement.

In a swift reaction, the incumbent NIMASA DG, Dr Dayo Mobereola, fired back, dismissing Temisan’ s claim as “misleading which does not reflect the true situation of CVFF”

In a press statement he personally signed on Sunday, November 1st, 2026, Mobereola said all the remittances into the CVFF pool are retained in their original currencies of remittance.

He explained that the revenue streams accruing to the CVFF are denominated in different currencies.

“Accordingly, funds remitted in United States dollars are retained in dollars with the Central Bank of Nigeria (CBN), while contributions remitted in naira are retained in the local currency.

“There has been no conversion of the dollar-denominated component of the CVFF to naira, contrary to the allegation”

However, Temisan, in his reaction to the rebuttal by Mobereola as reported by our reporter, maintained his stance on the controversy.

In his defence of his position on the matter, which he made in reference to the report by this platform, Omatseye declared emphatically that such conversion was made during his tenure as the DG of NIMASA.

“By virtue of the seasonal headline that I lied, there is a need to clarify exactly what was said.

“When I became DG NIMASA in 2009. the Agency’s account, be it CVFF or 3% ,were held in commercial banks.

” Several banks were nominated as collection banks but on the 23rd of each month, there was what we called sweep, where all monies, be it dollars or naira, were swept from the different collection banks accounts to designated naira and dollar accounts.

“By virtue of a memo from the Accountant General’s office, the Agency was directed to change all foreign internally generated revenue, be it 3% or CVFF, into naira and fix it in naira.

” The reason I was made to understand was that the dollar earned 1-2% interest whereas naira earned upward of 15% interest. Which made sense.

“This was the practice until I left office. I was explaining to the audience what had transpired during my tenure.

“What has been the practice since the advent of TSA is better explained by NIMASA.

“In the light of that, I stand fully by my statement that during my tenure, all dollar funds received as CVFF were converted into naira.

“I really don’t understand where I’m being accused of lying by NIMASA.

” I read NIMASA position which is correct based on correct realities and my position is based on my realities at the time I was in office.

” On the day I left NIMASA which was 13th December 2010, there was being held in fixed deposit N52 billion which included both CVFF and Maritime fund” Temisan declared , clarifying his position on the controversial matter.

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Tension heightens at Osborne Foreshore Estate over alleged environmental breach by property developer

Funso OLOJO, Editor

A visit by Lagos State Deputy Governor, Dr. Kadri Obafemi Hamzat, to a disputed construction site at Osborne Foreshore Phase II Estate, Ikoyi, on Saturday, October 31st, 2026 ended in a dramatic confrontation after the developer, Kenshad International Limited, failed to open the gates to the property.

Hamzat, who led a high-powered government delegation to the estate following complaints by residents over alleged planning violations and environmental infractions, reportedly waited for more than 30 minutes at the entrance to the development, known as Abba Court, on Mahogany Close, without gaining access.

The incident has heightened tensions over the controversial development, with residents questioning the developer’s refusal to grant access to the deputy governor and his entourage, while the company has dismissed suggestions that it deliberately locked out the government delegation.

The deputy governor’s visit followed mounting complaints from residents, who alleged that the developer had embarked on construction activities capable of compromising the safety, drainage infrastructure and environmental integrity of the estate.

At a meeting with Hamzat, tagged Osborne Phase II Residents and Public Leaders Dialogue, residents accused Kenshad International Limited of constructing beneath high-tension electricity lines, laying concrete slabs over a canal and undertaking sand-filling activities that had allegedly narrowed water outlets within the estate.

They warned that the alleged obstruction of the canal could disrupt the natural flow of water, undermine the estate’s drainage system and increase the risk of flooding, with possible consequences for adjoining communities.

The residents also accused the developer of creating an unauthorised rear entrance into the estate, allegedly used to bring in suspected thugs to intimidate residents opposed to its construction activities.

They further alleged that soldiers, police personnel and officials of the Federal Ministry of Housing and Urban Development had been deployed or involved in attempts to harass and intimidate them.

The residents called on the Lagos State Government to investigate the allegations against Kenshad International Limited and its owner, Ken Ukaoha, and determine whether the development complied with applicable planning, environmental and safety regulations.

They also questioned the legal basis of the developer’s claimed joint-venture arrangement with the Federal Ministry of Housing and Urban Development, urging the state government to scrutinise the agreement and establish whether it conferred the necessary authority to undertake the disputed activities.

Responding to the complaints, Hamzat maintained that physical planning, land use and development control were matters within the constitutional jurisdiction of state governments.

Citing Supreme Court decisions, the deputy governor argued that the Federal Government could not unilaterally assume the functions of state planning authorities or issue building approvals in place of the relevant state agencies.

He assured the residents that the Lagos State Government would investigate the allegations and take appropriate steps based on its findings.

Hamzat was accompanied on the visit by former Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun; Senator Wasiu Eshilokun Sanni, representing Lagos Central Senatorial District; Hon. Gbolahan Yishawu, representing Eti-Osa Constituency in the Lagos State House of Assembly; commissioners and other government officials.

Hamzat is also the All Progressives Congress (APC) governorship candidate for the February 6, 2027 Lagos State governorship election.

However, reacting to the controversy, Managing Director of Kenshad International Limited, Ken Ukaoha, denied that his company deliberately locked out the deputy governor or obstructed a canal at the estate.

Ukaoha explained that the construction site was closed because of a government-issued circular directing a temporary suspension of construction activities ahead of a scheduled meeting.

He insisted that the gates were not shut to prevent Hamzat or any government official from accessing the property, but because workers and other personnel had vacated the site in compliance with the directive.

The developer also said he was not in Lagos when the incident occurred and had not received any formal notification that the deputy governor or other government officials intended to inspect the property.

“Nobody locked the deputy governor out of the site. The site was locked because nobody was there. They gave a circular that we were meeting. So, everybody was away. It is a construction site, and nobody was there,” he said.

Ukaoha, who confirmed that he had been invited to a meeting over the allegations of canal obstruction and land grabbing, described the controversy as a disagreement between his company and a neighbouring property owner.

On the allegation that Kenshad had blocked a canal, the developer maintained that he personally financed the construction of part of the drainage infrastructure in the estate.

“As I am talking to you, that canal in question, I did the canal with my money. The Royal Palm, where I did half of it with my money,” he said.

He further claimed that the canal in dispute was not connected to any other drainage channel, adding that his company had undertaken drainage construction in the area with the involvement of government officials.

Ukaoha also maintained that Kenshad had obtained the necessary government approvals for its construction activities and paid the prescribed fees.

He said officials of the Lagos State Ministry of the Environment had visited the site on several occasions, insisting that the company had not violated any applicable law.

The conflicting accounts have brought renewed attention to the dispute over the development, particularly the allegations concerning drainage infrastructure, construction beneath high-tension power lines, land-use approvals and the respective regulatory responsibilities of federal and state authorities.

The outcome of the Lagos State Government’s proposed investigation is expected to clarify the circumstances surrounding the development and establish whether the disputed construction activities comply with the relevant planning, environmental and safety requirements.

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Maritime Journalists’ associations fuse, hold unity conference on sectorial reforms

Adegboyega Oyetola

Gloria Odion, Maritme reporter

The Network of Nigerian Maritime Journalists (NNMJ) is set to bring together leading government officials, maritime regulators, industry experts and private sector operators at its Unity Conference scheduled for Friday, November 13th, 2026, in Lagos, to deliberate on reforms and strategies for repositioning Nigeria’s maritime industry.

The conference, scheduled for 11:00 a.m. at the Airport Hotel, Ikeja, will focus on the performance, policy direction and reform agenda of the maritime sector under President Bola Ahmed Tinubu’s administration, with particular emphasis on seaport modernisation, trade facilitation and revenue generation.

Former Director-General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Barrister Temisan Omatseye, will chair the conference, while the Minister of Marine and Blue Economy, Adegboyega Oyetola, will attend as Special Guest of Honour.

Renowned maritime lawyer, Barrister Emeka Akabogu, SAN, is expected to deliver the keynote address on the theme, “Seaport Modernisation, Trade Facilitation and Revenue.”

The conference is expected to provide a platform for critical engagement among policymakers, industry operators and other stakeholders on practical measures to improve port efficiency, strengthen maritime infrastructure and maximise the sector’s contribution to national economic development.

Deliberations will centre on the modernisation of Nigeria’s seaports, rehabilitation and renewal of critical maritime infrastructure, streamlining of cargo clearance procedures, trade facilitation and initiatives to improve the ease of doing business.

Participants will also examine strategies for enhancing government revenue, plugging financial leakages and tackling operational bottlenecks that continue to affect the efficiency and competitiveness of the maritime industry.

Other issues expected to feature prominently include investment opportunities in the marine and blue economy, employment generation, maritime safety and security, and measures to strengthen Nigeria’s position in the global maritime industry.

The gathering is expected to attract heads of maritime agencies, managing directors of shipping companies, terminal operators, freight forwarders and other key stakeholders across the maritime value chain.

According to the organisers, the Unity Conference is designed to encourage constructive dialogue, deepen public-private sector collaboration and generate policy recommendations capable of improving port operations, facilitating legitimate trade and unlocking the vast economic potential of Nigeria’s maritime sector.

The conference will also underscore the role of maritime journalism in promoting transparency and accountability, providing independent industry analysis and keeping the public informed about government policies, regulatory developments and reforms within the marine and blue economy.

Through the initiative, NNMJ seeks to strengthen professional relationships within the maritime industry, foster greater cooperation among stakeholders and provide a platform for exchanging ideas and developing practical solutions to the challenges confronting the sector.

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