FG Reserves Road Contracts Under ₦20bn for Local Firms, Prioritises NNPC-Led Projects

Story, written by Okafor Joseph September 10,2025

The Federal Government has announced that all road construction projects valued below ₦20 billion will now be executed solely by indigenous contractors as part of a new “Nigeria First” infrastructure policy.

Minister of Works, David Umahi, disclosed this during an inspection of the dualisation of the Eleme Junction–Onne Port Road in Rivers State. The project, being handled by RCC Nigeria Ltd, is among those previously financed through the Nigerian National Petroleum Company Limited’s (NNPC) Tax Credit Scheme, which has now been discontinued.

Umahi explained that the Ministry of Works has drawn up a list of all road projects inherited from the NNPC scheme, with plans to prioritise funding for the most critical highways within the national economic corridor. He stressed that President Bola Tinubu had directed that no such projects should be abandoned.

The minister also warned contractors to maintain quality, speed, and adherence to specifications, cautioning that any case of poor delivery would be reported to anti-graft agencies. He particularly highlighted bad practices such as leaving binder asphalt layers exposed without protective finishing, a situation that weakens road durability.

According to Umahi, the new policy will not only ensure sustainability in road development but also empower local firms, reduce capital flight, and strengthen Nigeria’s construction industry.