The Federal Government of Nigeria has mandated that all road contracts valued below N20 billion under the NNPCL Tax Credit Scheme be awarded exclusively to indigenous contractors, excluding foreign firms, as part of the “Nigeria First” initiative to bolster local expertise in infrastructure projects.

Works Minister David Umahi announced the directive during a site inspection of the East-West Road in Rivers State on September 9, 2025, emphasizing continued funding for ongoing works despite the Nigerian National Petroleum Company Limited (NNPCL) halting its contributions last month.

The policy aims to enhance domestic participation in road development, a sector critical to Nigeria's economic corridors. Umahi explained that President Bola Tinubu has ordered the Ministry of Works to prioritize inherited NNPCL-funded projects, compiling a list focused on key routes to prevent abandonment. “As part of strategic plans towards sustainability in project funding and execution... the Federal Ministry of Works has adopted a funding prioritization framework to ensure the continued execution of road projects hitherto funded by [NNPCL] under the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme,” a ministry statement detailed.

The minister added that projects under N20 billion would no longer go to expatriate firms, aligning with the government's push for local empowerment. NNPCL ceased funding under the tax credit scheme on August 1, 2025, leaving approximately N3 trillion in outstanding projects nationwide. The scheme, which allowed the company to offset taxes by investing in infrastructure, had supported vital repairs and expansions.

To bridge the gap, the government is exploring public-private partnerships (PPP) and alternative financing, with priority for contractors showing strong financial and technical capabilities. Umahi assured that no projects would stall, directing contractors to resume work immediately and confirming payments for verified certificates earned before the cutoff date. During the Rivers State visit, Umahi inspected sections of the East-West Road, including the Eleme-Onne stretch handled by Reynolds Construction Company (RCC) Nigeria Limited. He praised the workmanship but urged faster progress, upholding a December 15, 2025, completion deadline without extensions or price variations.

He also reviewed the Enugu-Port Harcourt Expressway segments by China Civil Engineering Construction Company (CCECC) and Arab Contractors, stressing nationwide enforcement of quality standards. Umahi highlighted recurring issues like unprotected binder courses that weaken roads and warned of sanctions, including referrals to anti-graft agencies, for subpar execution. The move to favor indigenous firms has drawn support for promoting economic inclusion and capacity building among local players, who often cite limited access to large contracts as a barrier to growth.

However, some industry observers question whether domestic contractors have the resources for timely delivery, given past delays in similar projects. Expatriate firms, while bringing advanced technology, have faced criticism for higher costs and occasional quality lapses.