The Federal Government has announced that all road projects under the Nigerian National Petroleum Company Limited (NNPCL) Tax Credit scheme with contract values below N20 billion will now be awarded exclusively to indigenous contractors. Expatriate firms are barred from participating in these smaller-scale projects.

The directive, part of the Ministry of Works’ “Nigeria First” initiative, aims to boost local participation in infrastructure development. Works Minister David Umahi revealed the decision during an inspection of the East-West Road in Rivers State on September 9, 2025.

Although NNPCL stopped direct funding for Tax Credit projects on August 1, 2025, President Bola Tinubu ordered that ongoing projects continue. The Ministry of Works has since prioritized inherited projects, focusing on key economic corridors across the country.

Umahi emphasized that contractors must adhere strictly to quality and delivery standards. Any lapses in workmanship, such as unprotected binder courses that compromise road durability, will be met with sanctions, including referrals to anti-graft agencies.

Highlighting ongoing projects, Umahi commended the work of Reynolds Construction Company on the Eleme–Onne road but criticized delays, reiterating a firm completion deadline of December 15, 2025, with no extensions or cost variations. Other sites visited included parts of the Enugu–Port Harcourt Expressway, handled by China Civil Engineering Construction Company and Arab Contractors, as well as additional sections of the East-West Road.

To address funding gaps from the halt of NNPCL support, the Federal Government is exploring Public-Private Partnerships (PPP), prioritizing contractors with proven financial and technical capacity. The move forms part of broader efforts to ensure the timely completion of about N3 trillion worth of ongoing Tax Credit road projects nationwide.