Indigenous contractors free to bid for road projects above N20 billion – FG clarifies

The Federal Government has clarified that indigenous contractors are not restricted to handling only road projects valued below N20 billion.

Works Minister David Umahi gave the clarification on Wednesday during an inspection of the Carter Bridge in Lagos, as reported by the News Agency of Nigeria (NAN).

He explained that while expatriate firms would no longer be awarded projects under N20 billion, Nigerian contractors remain eligible to compete for contracts above that threshold.

This position followed Umahi’s earlier announcement that all road contracts below N20 billion would be reserved exclusively for indigenous contractors, barring foreign companies from such projects under the Ministry’s “Nigeria First” initiative.

“The Federal Government on Wednesday said that it did not limit indigenous contractors to jobs below N20 billion. 

“The Minister of Works, Sen. Dave Umahi, made the clarification during a comprehensive inspection of under deck of the Carter Bridge in Lagos State on Wednesday,” the NAN report read in part.

It further quoted Umahi as saying, “They are not limited to just N20 billion. We are saying that our expatriate firms will no longer do jobs below N20 billion, and we are saying that bigger indigenous contractors will also compete with expatriates on jobs that are above N20 billion.’’ 

Umahi also directed the withdrawal of certificates issued to contractors who failed to cover binder courses on roads, warning that substandard practices would attract sanctions.

He explained that leaving binder courses uncovered for more than two months leads to early road failure, and that funds for such defective work would be recovered from the contractors.

The Minister cited recent inspections in Rivers and Abia States, where contractors had laid binder courses for up to 20 kilometres without applying the wearing course. He emphasized that such practices would no longer be tolerated nationwide.

What you should know 

The reservation of road projects below N20 billion for indigenous contractors is part of the Nigeria First Policy of the Tinubu administration.

• In May 2025, one of the key resolutions adopted at the Federal Executive Council (FEC) meeting, presided over by President Bola Tinubu, was to bar MDAs from procuring foreign goods and services where local alternatives exist.
• The policy is designed to strengthen local industries, enforce local content compliance, and reduce import dependency.

Contracts without viable local alternatives are required to include provisions for technology transfer, skills development, or local capacity building.

This broader policy framework explains the Ministry of Works’ decision to reserve sub-N20 billion road projects exclusively for Nigerian firms, while still allowing them to compete for larger contracts.