By Atoyebi Nike
The Federal Government has clarified that Nigerian contractors are not restricted to road projects valued below ₦20 billion, contrary to widespread interpretation of its new “Nigeria First” policy.
Works Minister David Umahi made the clarification on Wednesday during an inspection of the Carter Bridge in Lagos, according to the News Agency of Nigeria (NAN).
Umahi explained that while expatriate firms will no longer be awarded projects under ₦20 billion, indigenous companies remain free to compete for larger contracts.
“They are not limited to just ₦20 billion. We are saying that our expatriate firms will no longer do jobs below ₦20 billion, and we are saying that bigger indigenous contractors will also compete with expatriates on jobs that are above ₦20 billion,” the minister stated.
He also issued a stern warning to contractors over substandard practices, ordering the withdrawal of certificates from firms that leave binder courses uncovered for more than two months. Umahi said such negligence leads to premature road failure, adding that costs for defective works would be recovered from the defaulting contractors.
The minister cited inspections in Rivers and Abia States, where contractors had laid binder courses for up to 20 kilometres without applying the wearing course, insisting such practices would no longer be tolerated nationwide.
The Nigeria First Policy, under which projects below ₦20 billion are reserved for indigenous contractors, is designed to strengthen local industries, enforce local content, and reduce dependence on imports. Where local capacity is lacking, contracts must include provisions for technology transfer, skills development, or capacity building, officials said.
