The Federal Government has clarified that indigenous contractors are not confined to road projects valued below ₦20 billion, dispelling earlier reports that appeared to suggest otherwise.
Works Minister Senator David Umahi gave the clarification on Wednesday during an inspection of the Carter Bridge in Lagos.
“They are not limited to just ₦20 billion. We are saying that our expatriate firms will no longer do jobs below ₦20 billion, and we are saying that bigger indigenous contractors will also compete with expatriates on jobs that are above ₦20 billion,” Umahi explained.
The clarification follows the government’s recent directive reserving all road contracts below ₦20 billion exclusively for Nigerian contractors under the “Nigeria First” initiative. The policy is designed to strengthen local industries, enforce local content requirements, and reduce reliance on imports.
Umahi also cautioned against poor construction standards, ordering that certificates be withdrawn from contractors who fail to cover binder courses on roads.
“Leaving binder courses uncovered for more than two months leads to early road failure. Funds spent on defective work will be recovered from the contractors,” he said.
He noted that inspections in Rivers and Abia States revealed binder courses laid across stretches of up to 20 kilometres without the wearing course applied, which he described as unacceptable.
The “Nigeria First” initiative, adopted at a May 2025 Federal Executive Council (FEC) meeting presided over by President Bola Tinubu, also requires that contracts without viable local alternatives incorporate provisions for technology transfer, skills training, or local capacity development.
This broader framework guarantees that while sub-₦20 billion projects are reserved for indigenous firms, larger contracts remain open to competition, with Nigerian contractors eligible to bid alongside foreign firms for projects exceeding ₦20 billion.