The Federal Government has directed that all NNPCL Tax Credit road contracts below N20 billion be reserved exclusively for indigenous contractors, barring expatriate firms from such projects.
The policy, introduced by the Ministry of Works under its “Nigeria First” initiative, is aimed at strengthening local participation in infrastructure delivery.
Works Minister David Umahi announced the decision during an inspection of the East-West Road in Rivers State on September 9, 2025, according to a statement by the ministry.
He explained that although the Nigerian National Petroleum Company Limited (NNPCL) had stopped direct funding of Tax Credit projects, President Bola Tinubu ordered that ongoing projects must continue. To this end, the ministry has compiled and prioritized inherited projects, focusing on those along key economic corridors.
“As part of strategic plans towards sustainability in project funding and execution and in pursuance of the directive of the President of the Federal Republic of Nigeria, His Excellency, Bola Ahmed Tinubu, GCFR on strategic and systematic funding of inherited NNPCL funded projects, the Federal Ministry of Works has adopted funding prioritization framework to ensure the continued execution of road projects hitherto funded by Nigerian National Petroleum Company Ltd (NNPCL) under the Road Infrastructure Development and Refurbishment Investment Tax Credit Scheme,” the statement read in part.
It added, “He directed that henceforth any project below the contract sum of N20 Billion would not be given to expatriate firms, and this he said is part of measures to promote the Nigeria First policy of Federal Government of Nigeria.”
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Umahi warned that contractors must meet quality and delivery standards, as lapses in workmanship would attract sanctions, including referral to anti-graft agencies.
- The minister further noted recurring cases of poor construction practices, such as leaving binder courses unprotected, which compromise road durability. He directed that such practices would no longer be tolerated nationwide.
- On the Eleme–Onne road project handled by Reynolds Construction Company (RCC), Umahi commended the quality of work but criticized the slow pace, reiterating the December 15, 2025, completion deadline with no extension or cost variation allowed.
Projects inspected during his Rivers State visit also included sections of the Enugu–Port Harcourt Expressway handled by China Civil Engineering Construction Company (CCECC) and Arab Contractors, as well as other stretches of the East-West Road.
What you should know
The Nigerian National Petroleum Company Limited (NNPCL) halted funding for road projects under the Tax Credit Scheme on August 1, 2025, leaving about N3 trillion worth of outstanding projects nationwide.
- To prevent abandonment, President Bola Tinubu directed the Ministry of Works to sustain these projects through a prioritization framework, focusing on those along key national economic corridors.
- Minister of Works David Umahi recently disclosed that the Federal Government is also considering Public-Private Partnerships (PPP) to bridge the funding gap, with priority given to contractors that demonstrate strong financial and technical capacity.
