The Federal Government has announced a new contract policy reserving, all contracts valued below ₦20 billion exclusively for indigenous construction companies, in a move designed to strengthen local capacity, boost the economy, and reduce dependence on expatriate firms.

Minister of Works, Senator David Umahi, disclosed this during an inspection of the ongoing dualisation of the East–West Road (Section IIIA) from Eleme Junction to Onne Junction in Rivers State on Tuesday, September 9, 2025.

The contract policy decision, according to Umahi, is part of President Bola Ahmed Tinubu’s directive to ensure that critical road projects inherited from the Nigerian National Petroleum Company Limited (NNPCL) under the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme are completed without disruption.


The Minister explained that the Works Ministry has compiled and submitted all inherited NNPCL-funded projects to the President for review, with emphasis placed on those along national economic corridors such as the Eleme–Onne axis.

He revealed that Tinubu has instructed that no ongoing road project should be abandoned.

“Mr. President has graciously directed that none of such works should stop.

We are going to prioritise the most critical projects and push them forward for immediate funding,” Umahi said.

The move signals the government’s intent to deliver on its infrastructure renewal promise while safeguarding Nigeria’s economic lifelines.


In a bid to put Nigerians first, Umahi declared that expatriate contractors will no longer be considered for projects below ₦20bn.

He stressed that this measure is aimed at building the capacity of local companies, creating jobs, and ensuring that indigenous firms take centre stage in national infrastructure development.

“This is part of our Nigeria First policy. Any contractor violating contractual agreements will face scrutiny from anti-graft agencies,” he warned.

Industry analysts say this contract policy could significantly empower local construction firms, many of which have long complained of being sidelined in favour of foreign contractors despite having the capacity to deliver.


While on inspection, Umahi raised concerns over poor construction practices by some contractors, particularly the practice of laying binder courses and leaving them exposed without wearing courses for months.

He cautioned that such methods weaken roads and accelerate deterioration.

He directed federal controllers nationwide to step up supervision to ensure quality assurance.

At the Eleme–Onne project site, Umahi praised Reynolds Construction Company (RCC) for maintaining high construction standards but criticised the slow pace of work.

He dismissed excuses related to heavy rains and reiterated that the project must be completed by December 15, 2025, without extensions, price variations, or additional claims.

“The quality is excellent, but the pace is not acceptable. This project can never be reviewed by a kobo,” he declared.



The Minister also lamented the destructive impact of heavy-duty trucks parking on federal highways, especially on the Aba–Port Harcourt route.

According to him, such practices are damaging pavements and undermining government investments.

“Our roads are not designed to carry these heavy trailers. They are destroying pavements and undermining the President’s efforts to build roads that should last 50 to 100 years,” Umahi said.

He pledged to engage state governors and the Inspector-General of Police to enforce stricter controls on truck parking and protect public infrastructure.



The Federal Controller of Works in Rivers State, Mrs. Enwereama Tarilade, disclosed that RCC has completed 15 kilometres of the Eket-bound right carriageway and has started work on the Port Harcourt-bound left carriageway, with one kilometre of Continuously Reinforced Concrete Pavement already laid.



Experts believe the federal government’s decision to reserve contracts below ₦20bn for local firms could mark a turning point in the Nigerian construction industry.

Beyond reducing capital flight, the move could enhance technology transfer, encourage healthy competition, and support the growth of indigenous companies.

However, some industry stakeholders have cautioned that local firms must also be held to strict quality standards to prevent a decline in project durability.

Transparency, oversight, and timely funding will also be critical to achieving the intended results.



The new contract policy directive reflects the Tinubu administration’s broader infrastructure and economic reform agenda.

By prioritising indigenous firms, maintaining continuity of inherited projects, and enforcing deadlines without cost variations, the government is signalling a commitment to accountability, efficiency, and national economic empowerment.

If properly implemented, this “Nigeria First” policy could reshape the road construction sector, empower local businesses, and deliver the durable infrastructure Nigeria urgently needs.