NNPC mulls roads rebuild under tax credit scheme

In a bid to address the issue of supply constraints occasioned by bad roads, the Nigeria National Petroleum Corporation (NNPC) has indicated its readiness to collaborate with stakeholders to fix Nigerian roads. 

Group Managing Director of the NNPC Mele Kyari, who disclosed this at a meeting with major players in the oil and gas industry Tuesday in Abuja, said fixing the roads will help improve supply of petroleum products nationwide. 

According to Kyari, the NNPC is looking at taking advantage of the federal government Tax Credit Scheme to carry out the proposed interventions. 

“We are committed to utilising the Federal Government’s Tax Credit Scheme to rebuild some of the affected roads in line with Mr. President’s Executive Order 7. Upon our fruitful deliberations today, the NNPC has pledged to support the PTD and NARTO in carrying out quick intervention fixes on some strategic bad spots identified to enable unhindered movement of trucks for transportation of petroleum products nationwide,” the NNPC helmsman said.

Established under FG’s Executive Order 7 of 2019, the Road Trust Fund Policy/Tax Credit Scheme gives private sector operators an opportunity to fund critical infrastructure with the government.

The meeting was attended by the NNPC, the Petroleum Tanker Drivers (PTD), the National Association of Road Transport Owners (NARTO), Department of Petroleum Resources (DPR), Federal Ministry of Works, Federal Inland Revenue Service (FIRS), Department of State Services (DSS), Federal Road Safety Corps (FRSC) and Nigeria Union of Petroleum & Natural Gas Workers (NUPENG).

At the end of the meeting, stakeholders also agreed to enforce mandatory installation of safety valves in all petroleum product trucks in the country effective February 1, 2022 with full commitment given by NARTO.

The meeting also frowned at the abuse of axle load or tonnage limits, with the NNPC agreeing to engage the Nigerian Customs Service for enforcement of preventing the importation of tanks that exceed 45,000 litres capacity.

Following NNPC’s intervention over the weekend, the Petroleum Tanker Drivers (PTD) Branch of the Nigeria Union of Petroleum & Natural Gas Workers (NUPENG) called off a planned strike action, agreeing instead to accept the dialogue option proposed by the Corporation, a development that has sustained smooth supply and distribution of petroleum products nationwide.

The meeting of critical stakeholders in the oil and gas sector was called in order to find lasting solutions to the road network challenges and other lingering issues.