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Tuesday, August 5, 2025

FG Intervenes In NNPCL-Funded Projects, Reassures Of Continuity And Payment

By Emmanuella Oghenetega

The Federal Government, through the Federal Ministry of Works, has intervened in the ongoing concerns surrounding the potential discontinuation of funding for road infrastructure projects under the Nigerian National Petroleum Corporation Limited (NNPCL) Tax Credit Scheme.

Speaking during a high-level engagement held at the Ministry’s headquarters in Abuja with the affected contractors, the Minister of Works, Engr. David Umahi, relayed the message of President Tinubu, reaffirming the administration’s commitment to infrastructure development. He assured stakeholders of continuous funding and guaranteed that no project would be abandoned.

Addressing the issue of unpaid certificates under the NNPCL Tax Credit Scheme, the Minister moved to dispel fears within the contractor community.

He clarified that the majority of projects under NNPCL’s funding will remain unaffected. Furthermore, he assured the contractors, particularly those working on concession-bound roads, that before such projects are handed over to prospective concessionaires, who have proof of funds and capacity to perform, all debts and outstanding entitlements to such contractors will be fully paid for.

Umahi directed that all contractors and field officers return to the sites and resume work immediately. He emphasised that updated project documentation, including revised scopes for critical corridors like the Lokoja–Benin Dual Carriageway and all other projects must be submitted within seven days. He warned that inaccurate data submissions could result in project misinformation and delays in execution.

On the issue of unpaid certificates, the Minister stressed the need for accurate reconciliation of certified amounts with payments received, including VAT, other taxes, and 5% retention fee, which remain a part of the contractors’ entitlements. He revealed that the Ministry is actively engaging with NNPCL to clear all outstanding verified certificates earned before 1st August 2025.

He informed all contractors of NNPCL projects that the President has approved that funding of such projects from 1st August 2025 will continue on a new sustainable funding mechanism, and that all such projects must continue.

To ensure proper oversight and accountability, Engr. Umahi constituted a committee with representation from the Directors of Highways, Construction and Rehabilitation (C&R), Highways, Bridges and Design, Press and Public Relations, and Public Procurement to collate and verify all necessary information within the stipulated deadline.

He further announced that Zonal Directors, Federal Controllers of Works, and Contractors will be deployed across the six (6) geopolitical zones for physical inspections of ongoing projects and commissioning of completed palliative projects with the full participation of members of the Nigerian Union of Journalists (NUJ).

Reiterating the Ministry’s zero-tolerance stance on financial misconduct, the Minister ordered that all projects exceeding ₦10 billion be reported separately from those below to enhance transparency. Any unresolved payment issue or financial discrepancy after the seven-day deadline will be escalated.

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