FG directs road contracts below ₦20bn to indigenous contractors

By Kunle Sanni –

The Federal Government has directed that all road projects below ₦20 billion will henceforth be awarded exclusively to indigenous contractors, in line with its Nigeria First policy.

Minister of Works, Senator David Umahi, disclosed this on Tuesday during an inspection of the ongoing dualisation of the East–West Road (Eleme Junction–Onne Junction) in Rivers State. The project, being executed by Reynolds Construction Company (RCC), is one of those inherited under the NNPCL Tax Credit Scheme.

Umahi explained that President Bola Tinubu has ordered that no NNPCL-funded road project should be abandoned. He added that the ministry had adopted a funding prioritisation framework to ensure that the most critical roads within the national economic corridor receive immediate attention.

“As part of the Nigeria First policy, no expatriate firm will be awarded projects below ₦20 billion. Those are reserved for Nigerian contractors,” Umahi declared.

While commending RCC for the quality of work on the Eleme–Onne project, he expressed displeasure over the slow pace of execution. He warned that the December 15, 2025 completion deadline would not be extended and that no price variation would be entertained.

The minister also cautioned contractors nationwide against leaving binder asphalt layers exposed for long periods without covering them with the wearing course, stressing that such practices weaken pavements and cause early failure. He directed that any contractor found violating the rule would have their certificates revoked and the work redone.

Umahi further decried the indiscriminate parking of heavy-duty vehicles along federal highways, which he said was damaging pavements. He disclosed plans to write to state governors and the Inspector-General of Police to enforce stricter control measures.

Earlier, the Federal Controller of Works in Rivers State, Engr. Enwereama Tarilade, reported that RCC had completed 15 kilometres of the Eket-bound carriageway and commenced work on the Port Harcourt-bound section using Continuously Reinforced Concrete Pavement (CRCP).