The Federal Government has announced that contracts valued at less than ₦20 billion will no longer be awarded to foreign companies. Minister of Works David Umahi disclosed this on Tuesday during an inspection of the dualization project of the East-West Road (Section IIIA) from Eleme Junction, Port Harcourt, to Onne Junction in Rivers State.
Umahi explained that the new directive is part of the Nigeria First policy, aimed at empowering local contractors and ensuring greater domestic participation in infrastructure delivery. He noted that foreign firms will only be considered for contracts above the ₦20 billion threshold, while smaller projects will be reserved exclusively for Nigerian companies.
The minister emphasized that the Federal Ministry of Works has also adopted a funding prioritization strategy for tax credit projects previously managed by the Nigerian National Petroleum Company Limited (NNPCL). He revealed that although NNPCL had stopped funding some projects, President Bola Ahmed Tinubu had directed that none of the inherited works should be abandoned.
According to Umahi, the ministry is reviewing all such projects and will prioritize critical ones along national economic corridors for immediate funding. He added that the dualization of the Eleme-Onne section of the East-West Road falls into this category, given its strategic importance to commerce and port operations.
Speaking on quality assurance, Umahi expressed concern over construction practices observed in several ongoing projects across the six geo-political zones. He criticized contractors who lay stone bases and binder courses of asphalt over long stretches, sometimes up to 20 kilometers, without immediately covering them with the wearing course.
He explained that while the binder course reinforces road architecture, it is porous and allows water penetration if left exposed. Once water seeps into the stone base, which contains dust, the road structure weakens and eventually fails, even if it initially appears stable.
To address this, Umahi has directed federal controllers nationwide to enforce stricter monitoring. He ordered that in cases where binders are left exposed for more than two months, contractors will be required to remove both the binder and the underlying stone base before recertification. This measure, he said, is necessary to prevent premature road failures and ensure durability of projects funded by taxpayers.
During the inspection, Umahi reiterated that the government will hold both local and foreign contractors accountable for quality delivery. He assured that the ministry would not compromise on standards and that all road projects must be executed in compliance with technical specifications.
The minister’s remarks highlight the administration’s broader focus on infrastructure development as a driver of economic growth. By reserving smaller contracts for domestic firms, the government hopes to strengthen local capacity, create jobs, and reduce capital flight. At the same time, larger and more complex projects may still engage international expertise where necessary.
The decision marks a significant shift in Nigeria’s contracting policies, signaling increased protection for local players in the construction industry. While the policy is expected to boost indigenous companies, analysts note that its success will depend on consistent oversight, timely funding, and adherence to quality standards across all projects.
For the East-West Road project, Umahi pledged that the government remains committed to its timely completion, noting that the road is a critical link for businesses and commuters in the Niger Delta region. He stressed that with the President’s directive to sustain all inherited projects, the ministry will ensure work continues without interruption.
