The federal government has directed that all Nigerian National Petroleum Company (NNPC) Limited Tax Credit road contracts below N20 billion be reserved exclusively for indigenous contractors, barring expatriate firms from such projects.
The policy, introduced by the Ministry of Works under its Nigeria First initiative, is aimed at strengthening local participation in infrastructure delivery.
A statement from the ministry said the Minister of Works, Mr David Umahi, affirmed the decision during an inspection of the East-West Road in Rivers State on September 9, 2025.
He explained that although the NNPC Limited had stopped direct funding of Tax Credit projects since August 1, President Bola Tinubu ordered that ongoing projects must continue.
“As part of strategic plans towards sustainability in project funding and execution and in pursuance of the directive of the President 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 the NNPC under the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme,” the statement read in part.
It added, “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 Federal Government of Nigeria.”
Mr Umahi warned that contractors must meet quality and delivery standards, as lapses in workmanship would attract sanctions, including referral to anti-graft agencies
The Minister further noted recurring cases of poor construction practices, such as leaving binder courses unprotected, which compromise road durability. He directed that such practices would no longer be tolerated nationwide.
On the Eleme–Onne road project handled by Reynolds Construction Company (RCC), Mr Umahi commended the quality of work but criticized the slow pace, reiterating the December 15, 2025, completion deadline with no extension or cost variation allowed.
Projects inspected during his Rivers State visit also included sections of the Enugu–Port Harcourt Expressway handled by China Civil Engineering Construction Company (CCECC) and Arab Contractors, as well as other stretches of the East-West Road.