President Bola Tinubu has directed the Minister of Works, David Umahi, to reserve all Nigerian National Petroleum Company (NNPC) Limited tax credit road contracts below N20 billion exclusively for indigenous contractors.
The order restricts the minister from awarding any of such projects to expatriate firms.
Umahi made this known in a statement, hinting that the decision was taken during an inspection of the East-West Road in Rivers State on September 9, 2025.
The policy, introduced by the ministry under its ‘Nigeria First’ initiative, is aimed at strengthening local participation in infrastructure delivery.
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He said the NNPC had stopped direct funding of tax credit projects but that Tinubu had said ongoing projects must continue.
He noted that the ministry has compiled and prioritised inherited projects, focusing on those along key economic corridors.
“As part of strategic plans towards sustainability in project funding and execution and in pursuance of the directive of the President of the Federal Republic of Nigeria, His Excellency, Bola Ahmed Tinubu, GCFR on strategic and systematic funding of inherited NNPCL funded projects, the Federal Ministry of Works has adopted funding prioritization framework to ensure the continued execution of road projects hitherto funded by Nigerian National Petroleum Company Ltd (NNPCL) under the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme.
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“He directed that henceforth any project below the contract sum of N20 Billion would not be given to expatriate firms, and this he said is part of measures to promote the Nigeria First policy of the Federal Government of Nigeria,” Umahi said.
As such, he stressed that poorly executed contracts would attract sanctions, including referral to anti-graft agencies.
He said the recurring cases of poor construction practices, such as leaving binder courses unprotected, which compromise road durability, will no longer be tolerated.
He criticised the slow pace of work on the Eleme–Onne road project handled by Reynolds Construction Company (RCC), insisting that the December 15, 2025, completion deadline with not be extended or cost variation allowed.
Umahi was also said to have inspected the sections of the Enugu–Port Harcourt Expressway awarded to the China Civil Engineering Construction Company (CCECC) and Arab Contractors, as well as other stretches of the East-West Road.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X
