The Minister of Works, Senator David Umahi, has announced that all federal contracts valued below ₦20 billion will now be exclusively awarded to local construction firms.
Umahi made the declaration during an inspection tour of the dualisation project on the East-West Road (Section IIIA) from Eleme Junction to Onne Junction in Rivers State, on September 9, 2025.
“Contracts below ₦20 billion are now reserved for local contractors as part of our commitment to grow indigenous capacity,” Umahi stated.
He explained that the decision is part of a broader funding prioritisation strategy adopted by the Federal Ministry of Works to sustain key infrastructure projects previously funded by the Nigerian National Petroleum Company Limited (NNPCL) under the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme.
The Minister emphasized that the move aligns with President Bola Tinubu’s directive to ensure the uninterrupted continuation of all inherited NNPCL-funded road projects.
“We have compiled all NNPCL-inherited projects and submitted them to the President for review. Those along national economic corridors, like the Eleme–Onne road, will receive top priority,” Umahi added.
He reiterated the government’s commitment to improving road infrastructure in ways that empower local businesses, support job creation, and facilitate economic growth.
