Nigeria First: Umahi Insists Contracts Below ₦20bn Will Go to Local Contractors

Muhammad H Mamman
3 Min Read

By Muhammad Mamman

The Federal Ministry of Works has announced that all road construction contracts valued at less than ₦20 billion will be awarded exclusively to local contractors, in line with the Federal Government’s Nigeria First policy.

Minister of Works, David Umahi, made the disclosure during an inspection tour of the ongoing dualisation of the East–West Road (Section IIIA) from Eleme Junction, Port Harcourt to Onne Junction in Rivers State, currently being handled by RCC Nigeria Limited.

Umahi explained that while the project was originally funded under the Nigerian National Petroleum Company Limited (NNPCL) tax credit scheme, the arrangement has since been discontinued. However, President Bola Tinubu has directed that all such inherited projects must continue without interruption.

“We have reviewed all tax credit projects previously managed by NNPCL and presented them to Mr President,” Umahi stated. “The directive is clear: no project should stop. What we are doing as a Ministry is to prioritise these projects, focusing on those most critical to the nation’s economic corridors, such as this road.”

The Minister expressed concerns over construction practices observed during inspections across Rivers State and other geopolitical zones. He criticised contractors who lay stone bases and binder courses of asphalt over long stretches, sometimes exceeding 20 kilometres, but fail to apply the final wearing course within a reasonable timeframe.

“The binder acts as reinforcement to the road structure, but without the wearing course, which serves as a sealant, water penetrates through the asphalt and weakens the stone base,” Umahi warned. “It may appear technically sound at first, but inevitably such roads will fail.”

To address this, Umahi directed Federal Controllers of Works nationwide to enforce stricter standards: “Any binder left uncovered for more than two months must be scrapped and replaced, along with the stone base beneath it. We will not compromise on quality.”

The Minister reaffirmed that the Ministry’s funding prioritisation strategy is designed not only to safeguard public infrastructure but also to ensure that Nigerian contractors remain at the forefront of federal projects.

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