Nigeria has terminated its road infrastructure tax credit programme, citing constitutional constraints and the revenue authority’s lack of legal mandate to verify and approve construction projects financed under the scheme.
The Nigeria Revenue Service (NRS) has ended the road infrastructure tax credit programme on 5 February 2026, citing its inability to verify construction projects completed under the initiative.
NRS Chairman Zacch Adedeji announced the decision, explaining that project verification falls outside the agency’s legal mandate. He emphasised that approving tax credits for road construction constitutes an appropriation function, a role constitutionally assigned to government spending bodies, not to revenue agencies.
According to Executive Chairman Adedeji, the scheme, originally designed to run for 10 years, is being discontinued due to constitutional concerns and challenges in administering the programme. The chairman revealed that he approved one road tax credit request after taking office, but rejected subsequent applications after recognising the verification problem.
Former President Muhammadu Buhari approved the NGN 2.59 trillion tax relief scheme on 26 October 2017 to encourage private sector participation in road infrastructure development. The programme allowed companies and individuals funding road rehabilitation to receive income tax credits.
Adedeji had previously criticised the scheme’s legality on 15 February 2024, arguing that neither the NRS nor NNPC should handle contractor payments.
