PRESIDENTIAL EXECUTIVE ORDER (ROAD INFRASTRUCTURE DEVELOPMENT AND REFURBISHMENT INVESTMENT TAX CREDIT SCHEME) ORDER, 2019

An Executive Order grants tax credits to private companies for investing in road construction and rehabilitation. It targets large businesses and infrastructure investors with tax liabilities. This aims to bridge the infrastructure funding gap and stimulate economic growth.

What Is This Policy?

A presidential order that incentivises private sector investment in road construction and rehabilitation by granting a tax credit equivalent to the verified cost of the road project funded by the private investor.

Who Does It Target?

Large private companies and conglomerates with significant tax liabilities Infrastructure investors and construction companies Manufacturers and exporters who rely on specific road corridors Oil and gas companies and other heavy industries

What Does It Aim to Achieve?

Close Nigeria's infrastructure funding gap by leveraging private capital for road construction, reduce the burden on federal budget, and improve road quality through a self-financing credit mechanism.

Key Features

Tax Credit Mechanism: Private investors who fund approved road projects receive a tax credit equal to the verified construction cost, offsetable against Companies Income Tax. Project Approval Process: Road projects must be approved by the Minister of Finance in consultation with the Federal Ministry of Works and Housing before work commences. Independent Verification: An independent quantity surveyor certifies project costs to prevent inflation and ensure only legitimate expenses qualify for credit. Credit Carry-Forward: Unused credits may be carried forward until fully utilised, ensuring investors are not penalised for small annual tax liabilities.

Current Status

Rollout Stage: Active - several road projects approved and under construction Coverage: Federal roads designated by the Federal Ministry of Works Beneficiaries: Road users, communities along project corridors, and investing companies Funding: Private sector funding with Federal Government tax credit offset

How to Access

Submit a project proposal to the Special Purpose Vehicle (SPV) or directly to the Ministry of Finance Road must appear on the approved Federal Road project list Comply with environmental and design specifications Application method: Apply through the Coordination Unit at the Federal Ministry of Finance.

Important Terms

Credit is non-refundable but may be transferred in specific circumstances Misrepresentation of costs constitutes fraud and voids the credit Projects must be completed within agreed timelines

Impact & Metrics

Dangote Group, Lafarge, and other major companies have invested billions in federal roads, accelerating rehabilitation of key economic corridors.

Official Resources

Website: https://www.finance.gov.ng Contact: Federal Ministry of Finance, Budget and National Planning

Legal Framework

Issued under the executive powers of the President vested by Section 5 of the 1999 Constitution (as amended). The tax credit mechanism operates under the Companies Income Tax Act (CITA) and is administered by the Federal Inland Revenue Service (FIRS) Act. Road construction obligations align with the Federal Roads Authority Act and the Public Procurement Act 2007.