The Federal Government has implemented a new policy under its “Nigeria First” initiative, restricting NNPCL Tax Credit road contracts valued below N20 billion to indigenous contractors, effectively excluding foreign firms from these projects. Works Minister David Umahi announced this decision during an inspection of the East-West Road in Rivers State on Tuesday, September 9, 2025, as part of efforts to boost local involvement in infrastructure development.
Although the Nigerian National Petroleum Company Limited (NNPCL) ceased direct funding for Tax Credit projects on August 1, 2025, leaving N3 trillion in ongoing works, President Bola Tinubu has mandated their continuation. The Ministry of Works has prioritized inherited projects along critical economic routes, adopting a strategic funding approach to ensure completion. “This policy supports our commitment to empowering local talent and resources,” Umahi stated, emphasizing that substandard work will face penalties, including referrals to anti-corruption bodies.
Umahi highlighted persistent issues like unprotected binder courses that weaken road durability, vowing to enforce strict quality controls nationwide. During his visit, he praised the quality of the Eleme–Onne road project by Reynolds Construction Company (RCC) but urged faster progress, setting a firm December 15, 2025, deadline with no tolerance for delays or cost increases. Inspections also covered sections of the Enugu–Port Harcourt Expressway managed by China Civil Engineering Construction Company (CCECC) and Arab Contractors.
To address the funding shortfall, the government is exploring Public-Private Partnerships (PPP), favoring contractors with solid financial and technical credentials. This move aligns with Nigeria’s economic strides, including a 67.12% rise in capital importation to $5.64 billion in Q1 2025, though challenges like naira volatility (N1,527/$1 today) and 21.88% inflation in July persist. The policy aims to sustain infrastructure growth while fostering local expertise amid a N3 trillion project backlog.
