The Minister of Works, David Umahi, says all road contracts valued below ₦20 billion will now be reserved exclusively for Nigerian contractors.
Gatekeepers News reports that Umahi, who disclosed this during an inspection of the East–West Road dualisation (Section IIIA) from Eleme Junction to Onne Junction in Rivers State on September 9, said the policy is in line with the federal government’s “Nigeria First” agenda.
“Going forward, in keeping with the ‘Nigeria First’ policy of the federal government, all projects that are below ₦20 billion will be handled by indigenous contractors,” the minister announced.
“This is to give them the opportunity for fair competition in the works industry. Road construction is generally capital intensive, with many projects costing above ₦20 billion, but any project below that threshold will now be handled by local firms. That doesn’t mean they cannot compete for the bigger projects above ₦20 billion — both indigenous contractors and expatriates can still bid for those.”
Speaking with TheCable, Umahi’s media adviser, Orji Uchenna, clarified that the policy does not exclude indigenous companies from participating in large-scale projects.
“The initiative aims to prioritise indigenous firms for contracts below the ₦20 billion threshold. However, this does not exclude them from bidding for contracts above that amount,” Uchenna said.
The announcement coincides with the ministry’s adoption of a funding prioritisation framework to sustain critical road projects previously financed by the Nigerian National Petroleum Company Limited (NNPC) under the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme.
Umahi said the framework aligns with President Bola Tinubu’s directive that all inherited NNPC-funded projects must continue without interruption.
“Mr President has graciously directed that none of such works should stop,” Umahi noted.
“We are going to prioritise the most critical projects and push them forward for immediate funding.”
