You are currently viewing Umahi: Road projects below ₦20bn now reserved for local contractors

Umahi: Road projects below ₦20bn now reserved for local contractors

Minister of Works, David Umahi, has announced that all federal road projects valued at less than ₦20 billion will now be executed exclusively by indigenous contractors.

Speaking during an inspection of the East–West Road dualisation (Section IIIA), from Eleme Junction to Onne Junction in Rivers State on September 9, 2025, Umahi said the move is in line with the federal government’s Nigeria First policy to deepen local participation in infrastructure development.

“Going forward, all projects that are below ₦20 billion will be handled by indigenous contractors. This will give them the opportunity for fair competition in the works industry,” Umahi stated. “That doesn’t mean they cannot compete for projects above ₦20 billion, but those smaller than that threshold are reserved for local firms.”

Uchenna Orji, the minister’s special adviser on media, further clarified that the policy is designed to prioritise local contractors while still allowing them to bid for larger projects alongside international firms.

The announcement coincides with the ministry’s adoption of a funding prioritisation framework to sustain road projects financed under the Nigerian National Petroleum Company Limited (NNPC) Tax Credit Scheme. Umahi confirmed that President Bola Tinubu has directed all NNPC-funded projects to continue without disruption.

“We have compiled a comprehensive list of such projects and submitted it to the president, prioritising the most critical ones along key national economic corridors, such as the Eleme–Onne road,” Umahi said. “Mr President has graciously directed that none of such works should stop.”

Leave a Reply