Exclusively for indigenous businesses, the Federal Government has unveiled a new policy reserving all Nigerian National Petroleum Company Limited (NNPCL) Tax Credit road projects under N20 billion.
With the intention of raising domestic capability and promoting the “Nigeria First” policy of the Ministry of Works, this action essentially bars foreign contractors from working on such projects.
During an East-West Road inspection in Rivers State on September 9, 2025, Minister of Works, David Umahi, unveiled the policy change. He clarified that President Bola Tinubu ordered ongoing projects to proceed uninterrupted, even if NNPCL officially ceased direct financing of Tax Credit projects on August 1. To guarantee sustainability, the ministry has now implemented a prioritization approach that targets projects along key economic thoroughfares.
The News Chronicle learned that the new order fits into larger initiatives to promote local involvement in the construction of national infrastructure. Although foreign companies will still be involved in bigger projects, the government is committed to boosting the ability of local builders by entrusting them with small projects. This is also expected to enhance local knowledge and reduce capital flight.
Umahi emphasized that contractors must strictly adhere to quality standards, warning that substandard work would no longer be tolerated. He promised that such behaviors would now draw penalties including possible referrals to anti-graft organizations, noting typical errors like leaving binder courses unprotected, which frequently lowers road quality.
The minister commended Reynolds Construction Company (RCC) for the excellence of work on the Eleme–Onne portion during his tour yet condemned the sluggish speed. Reiterating the December 15, 2025, completion deadline, he demanded there would be neither cost changes nor time extensions. He also checked areas of the Enugu–Port Harcourt Expressway overseen by Arab Contractors and China Civil Engineering Construction Company (CCECC).
With NNPCL’s withdrawal leaving an estimated N3 trillion financial deficit, the funding problem still is of paramount importance. To bridge this, the Federal Government is exploring Public-Private Partnerships (PPP), while giving contractors with good financial and technical capacity top priority to guarantee prompt delivery.
The government hopes to speed road delivery and encourage long-term sustainability in Nigeria’s infrastructure industry by concentrating on empowering local contractors and strengthening quality monitoring
