The Nigerian Federal Government has taken a decisive step to empower local contractors, announcing a new directive that bars foreign firms from bidding on road construction projects valued below N20 billion under the NNPCL Tax Credit Scheme. The move is a cornerstone of the administration’s “Nigeria First” policy, aimed at strengthening indigenous capacity and promoting local participation in the nation’s infrastructure development, the minister of works said on Wednesday.
The Minister of Works, David Umahi, confirmed the policy, stating that it will ensure Nigerian firms are at the forefront of the country’s economic and infrastructural growth. He emphasized that the directive applies exclusively to projects funded through the NNPCL scheme, a significant source of capital for ongoing road works across the west African country.
“This is a deliberate effort to build the capacity of our indigenous contractors,” Umahi said in a statement. “We have seen that Nigerian firms have the technical expertise and the manpower to execute projects of this scale, and it is time we give them the opportunity to lead.”
Meanwhile, the new directive is expected to reshape the competitive landscape of the construction industry, providing a significant boost to local firms while raising questions about the future role of international contractors in Nigeria’s infrastructure sector. The government believes this will not only create jobs but also retain capital within the national economy.
The announcement, however, comes as the government grapples with a potential funding gap. The NNPCL has reportedly ceased its funding for these projects as of August 1, 2025. This has prompted the Ministry of Works to explore alternative financing models, including Public-Private Partnerships (PPPs), to guarantee the completion of critical road networks currently underway.
