Federal Government Bars Expatriate Firms From Handling Road Projects Below N20bn

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The Federal Government has announced that road construction contracts valued below N20 billion will henceforth be reserved exclusively for local contractors.

Minister of Works, David Umahi, made this known during an inspection of the ongoing dualization of the East-West Road (Section IIIA) from Eleme Junction to Onne Port in Rivers State.

He said the decision was part of efforts to enforce the “Nigeria First” policy and promote indigenous capacity in the construction sector.

“Henceforth, any project below the contract sum of N20 billion will not be awarded to expatriate firms,” Umahi said in a statement.

The minister disclosed that his ministry had compiled all road projects previously tied to the Nigerian National Petroleum Company Limited (NNPCL) tax credit scheme and submitted them for presidential consideration.

According to him, President Bola Tinubu has directed that none of such projects should be abandoned, but priority will be given to those within critical national economic corridors.

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Speaking on the East-West Road project, Umahi explained that while one carriageway had been completed and commissioned, work had already commenced on the second carriageway, which includes bridges and flyovers.

He urged contractors handling federal road projects to ensure quality delivery, adherence to specifications, and timely execution, warning that the Ministry would not hesitate to involve anti-graft agencies in cases of contract violations.

Umahi also expressed concern over the indiscriminate parking of heavy-duty vehicles on federal roads, which he said was damaging road infrastructure. He vowed to engage state governors and the Inspector General of Police to address the menace.

“Our roads are not designed to carry heavy trailers that are parked indiscriminately. From Aba to this location, I saw trailers taking over the roads, destroying pavements and causing environmental hazards. We will no longer tolerate it,” he stated.

The minister reiterated the Federal Government’s commitment to delivering durable road projects with a lifespan of 50 to 100 years, stressing that citizens must also play their part in preserving national infrastructure.