FG Restricts NNPCL Tax Credit Road Contracts Below N20 Billion to Nigerian Firms
The Federal Government of Nigeria has announced that all Nigerian National Petroleum Company Limited (NNPCL) Tax Credit road contracts valued below N20 billion will now be reserved exclusively for indigenous contractors. Expatriate firms will no longer be eligible for these smaller-scale projects, a move aimed at boosting local participation in the nation’s infrastructure development.
Works Minister David Umahi unveiled the policy during an inspection of the East-West Road in Rivers State on September 9, 2025. The initiative is part of the Ministry of Works’ broader “Nigeria First” strategy, designed to strengthen homegrown capacity and ensure sustainable delivery of road infrastructure across the country.
According to the ministry, while NNPCL had stopped direct funding for Tax Credit road projects, President Bola Tinubu ordered that ongoing projects should continue. The government has prioritized inherited projects along key economic corridors, ensuring that roads critical to commerce and transportation are completed efficiently. Umahi emphasized that projects under N20 billion will henceforth be reserved for indigenous firms to promote the Nigeria First policy.
The minister also cautioned contractors to maintain strict quality standards, warning that lapses in workmanship would attract sanctions, including investigations by anti-graft agencies. Highlighting recurring issues such as unprotected binder courses that compromise road durability, Umahi insisted that poor construction practices would no longer be tolerated nationwide. Projects inspected in Rivers State included the Eleme–Onne road and sections of the Enugu–Port Harcourt Expressway, with contractors reminded of strict deadlines and no allowances for cost variations.
With NNPCL halting funding for Tax Credit projects in August 2025, leaving approximately N3 trillion in unfinished works, the government is exploring Public-Private Partnerships (PPP) to bridge the funding gap. The Ministry of Works has committed to prioritizing contractors with proven financial and technical capabilities, ensuring that Nigeria’s road infrastructure projects continue without disruption while empowering local firms.
source: nairametrics