Umahi says contracts under ₦20bn will now go to Nigerian contractors under the Nigeria First policy to boost jobs and local expertise.
In a big move to empower Nigerian businesses, the Federal Government has announced that all contracts worth less than ₦20 billion will now go to local contractors. This decision, championed by the Minister of Works, David Umahi, is part of the Nigeria First policy — a strategy designed to keep more jobs, money, and expertise within the country.
Why This Matters
Umahi made this announcement during an inspection of the ongoing East-West Road dualization project between Eleme Junction and Onne Junction in Rivers State. The project is being handled by RCC Nig Ltd under the NNPC Tax Credit Scheme.
He explained that although the Nigerian National Petroleum Company Limited (NNPCL) had stopped funding some projects under this scheme, President Bola Tinubu has directed that no project should be abandoned. Instead, the Ministry of Works is prioritizing the most critical projects across the country for immediate funding.
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Holding Contractors Accountable
But Umahi didn’t stop there. He also raised concerns about the way some contractors handle road construction. According to him, many contractors lay stone bases and binder asphalt over long stretches but fail to cover them with the final wearing course — a protective seal that prevents water damage.
“When the binder is left uncovered, it weakens the road and causes early failure,” Umahi said. He has now ordered federal controllers to enforce stricter checks, warning that any binder left exposed for more than two months must be removed and rebuilt.
Building Local Capacity
At the heart of this new directive is the government’s plan to strengthen Nigerian contractors. By reserving contracts below ₦20 billion for local companies, the Ministry of Works hopes to build capacity, create jobs, and reduce dependence on foreign firms.
“This is about putting Nigeria first,” Umahi emphasized. “Local contractors will have more opportunities to prove their capability while contributing to our economy.”