In a bold move to strengthen local capacity and promote indigenous participation in national infrastructure development, the Federal Government of Nigeria has announced that all contracts valued below ₦20 billion will henceforth be reserved exclusively for local firms.
The announcement was made by the Honourable Minister of Works, Senator David Umahi, during an inspection tour of the East-West Road (Section IIIA) from Eleme Junction to Onne Junction in Rivers State. This directive forms a key part of the administration’s “Nigeria First” policy, aimed at empowering domestic contractors and reducing overreliance on expatriate firms for mid-scale infrastructure projects.
“No expatriate firm will be awarded any project below ₦20 billion. These contracts must go to indigenous companies. This is part of our Nigeria First policy,” Senator Umahi stated emphatically.
The Minister further explained that the Federal Ministry of Works has adopted a strategic funding prioritization framework to ensure the continuation of critical road projects previously financed by the Nigerian National Petroleum Company Limited (NNPCL) under the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme.
President Bola Ahmed Tinubu has directed that all inherited NNPCL-funded projects must continue without interruption, with priority given to those located along national economic corridors. The Eleme–Onne road project, currently handled by Reynolds Construction Company (RCC), was cited as a model for quality, though the Minister expressed concern over the pace of execution.
In addition to the contract policy shift, Senator Umahi issued a stern warning to contractors regarding poor construction practices, particularly the failure to protect binder courses with wearing courses, which has led to premature road failures nationwide. He directed federal controllers to enforce stricter supervision and compliance across all zones.
The Federal Government is also exploring Public-Private Partnerships (PPP) to bridge funding gaps and ensure timely delivery of infrastructure projects. Contractors demonstrating strong financial and technical capacity will be prioritized under this framework.