In a significant move to address misconceptions and reinforce its commitment to empowering local industries, the Federal Government of Nigeria has clarified that indigenous contractors are not restricted to road construction projects valued below ₦20 billion. This clarification was made by the Minister of Works, Senator David Umahi, during an inspection of the iconic Carter Bridge in Lagos on Wednesday, September 10, 2025. The statement counters earlier reports that appeared to limit the scope of indigenous contractors, reaffirming the government’s broader vision for fostering local expertise while maintaining high standards in infrastructure development.
Setting the Record Straight
Senator Umahi’s clarification comes in response to widespread misinterpretations of a recent government directive under the “Nigeria First” initiative, which reserves road construction contracts valued below ₦20 billion exclusively for Nigerian contractors. The policy, designed to bolster local industries and reduce dependence on foreign firms, had sparked confusion, with some reports suggesting that indigenous contractors were confined to smaller projects. Umahi was quick to dispel this notion, emphasizing that the policy is not a ceiling but a strategic floor to ensure local participation in the infrastructure sector.
“They are not limited to just ₦20 billion. We are saying that our expatriate firms will no longer do jobs below ₦20 billion, and we are saying that bigger indigenous contractors will also compete with expatriates on jobs that are above ₦20 billion,” Umahi stated during the inspection. This clarification underscores the government’s intent to create a balanced playing field where Nigerian contractors can thrive in both small-scale and high-value projects while competing with international firms for larger contracts.
The “Nigeria First” initiative, formalized during a Federal Executive Council (FEC) meeting in May 2025 under the leadership of President Bola Tinubu, is a cornerstone of the government’s economic strategy to prioritize local content and reduce reliance on imported expertise and materials. By reserving contracts below ₦20 billion for indigenous firms, the policy aims to strengthen Nigeria’s construction industry, create jobs, and build long-term capacity. At the same time, it opens opportunities for capable Nigerian contractors to bid for larger projects alongside foreign companies, ensuring that local expertise is not sidelined in high-stakes infrastructure development.
A Push for Quality and Accountability
During the inspection of Carter Bridge, Umahi also addressed concerns about substandard work in road construction projects across the country. He issued a stern warning to contractors, emphasizing that the government would not tolerate poor construction standards that compromise the longevity and safety of infrastructure. Specifically, he highlighted the issue of binder courses—critical layers in road construction—being left uncovered for extended periods, leading to premature deterioration.
“Leaving binder courses uncovered for more than two months leads to early road failure. Funds spent on defective work will be recovered from the contractors,” Umahi declared. He revealed that inspections in Rivers and Abia States had uncovered alarming lapses, with binder courses laid across stretches as long as 20 kilometers left without the protective wearing course. This practice, he noted, is unacceptable and undermines the durability of roads, ultimately costing the government and taxpayers significant repair expenses.
To enforce accountability, Umahi announced that contractors found guilty of such negligence would have their certificates withdrawn, and funds allocated for defective work would be recovered. This move signals the government’s determination to ensure that public funds are used efficiently and that infrastructure projects meet global standards. By holding contractors accountable, the Ministry of Works aims to restore public confidence in Nigeria’s infrastructure development and ensure that roads built today can withstand the test of time.
The “Nigeria First” Initiative: A Broader Vision
The “Nigeria First” initiative is more than a policy on contract allocation; it is a comprehensive framework aimed at transforming Nigeria’s infrastructure landscape while empowering its people. Adopted during the FEC meeting in May 2025, the initiative reflects President Tinubu’s vision of economic self-reliance and sustainable development. Beyond reserving sub-₦20 billion projects for indigenous contractors, the policy mandates that contracts without viable local alternatives include provisions for technology transfer, skills training, and local capacity development.
This broader framework ensures that even when foreign firms are involved in high-value projects, they contribute to Nigeria’s long-term development by sharing expertise and building local capabilities. For instance, contracts exceeding ₦20 billion, which are open to both Nigerian and foreign firms, must incorporate mechanisms to train local workers, transfer technological know-how, or develop local industries. This approach not only strengthens Nigeria’s construction sector but also creates a ripple effect across the economy, fostering job creation, innovation, and self-sufficiency.
The initiative aligns with the government’s broader economic goals of reducing import dependency and promoting local content across various sectors. By prioritizing Nigerian contractors for smaller projects, the government is providing a platform for local firms to gain experience, build their portfolios, and scale up to compete in larger markets. At the same time, allowing indigenous contractors to bid for projects above ₦20 billion ensures that capable Nigerian firms are not excluded from high-profile infrastructure developments, such as major highways, bridges, and urban infrastructure projects.
Implications for Indigenous Contractors
The clarification from Senator Umahi has far-reaching implications for Nigeria’s construction industry. By removing the misconception that indigenous contractors are limited to smaller projects, the government is signaling its confidence in the capacity of Nigerian firms to handle complex, high-value infrastructure projects. This opens the door for local contractors to compete on a global stage, fostering healthy competition and driving innovation in the sector.
For smaller indigenous firms, the reservation of sub-₦20 billion contracts provides a critical opportunity to grow and establish themselves in the industry. These projects, which include rural roads, urban infrastructure upgrades, and community development initiatives, are often less capital-intensive but have significant economic and social impacts. By focusing on these projects, local contractors can build their technical expertise, improve their operational efficiency, and create jobs for Nigerian workers.
For larger indigenous firms, the opportunity to compete for contracts above ₦20 billion is a game-changer. These firms, which have already demonstrated their capabilities in the domestic market, can now go head-to-head with international giants, showcasing Nigeria’s growing expertise in infrastructure development. This competitive environment is expected to drive quality improvements, as local firms strive to meet the stringent standards required for high-value projects.
Challenges and Opportunities
While the “Nigeria First” initiative presents significant opportunities, it also comes with challenges that the government and contractors must address. One key challenge is ensuring that indigenous contractors have the technical and financial capacity to deliver on projects, whether small or large. Many local firms face constraints such as limited access to capital, outdated equipment, and a shortage of skilled labor. To address these issues, the government may need to implement complementary policies, such as providing low-interest loans, facilitating access to modern equipment, and investing in vocational training programs.
Another challenge is maintaining quality across all projects, regardless of the contractor’s origin. Senator Umahi’s warning about defective work highlights the need for robust monitoring and evaluation mechanisms to ensure that contractors adhere to best practices. The government’s decision to recover funds from negligent contractors is a step in the right direction, but it must be backed by consistent enforcement and transparent accountability measures.
On the opportunity side, the “Nigeria First” initiative positions Nigeria’s construction industry for long-term growth. By prioritizing local content, the government is creating a virtuous cycle where local firms gain experience, reinvest profits into their businesses, and contribute to the national economy. The emphasis on technology transfer and skills training also ensures that Nigeria’s workforce becomes more competitive, reducing the country’s reliance on foreign expertise over time.
The Broader Economic Context
The “Nigeria First” initiative is part of a larger economic strategy to reposition Nigeria as a self-reliant and globally competitive nation. Infrastructure development is a critical driver of economic growth, and roads, in particular, play a vital role in connecting markets, facilitating trade, and improving access to essential services. By empowering indigenous contractors, the government is not only strengthening the construction sector but also creating jobs, boosting local economies, and reducing poverty.
The initiative also aligns with Nigeria’s efforts to diversify its economy away from oil dependency. By investing in local industries and promoting skills development, the government is laying the foundation for a more resilient and diversified economy. The focus on technology transfer, in particular, has the potential to spark innovation in areas such as construction techniques, materials science, and project management, positioning Nigeria as a leader in African infrastructure development.
The Role of Carter Bridge and Infrastructure Inspections
The choice of Carter Bridge as the backdrop for Senator Umahi’s clarification is symbolic. As one of Lagos’s most iconic structures, the bridge is a critical artery in Nigeria’s commercial capital, connecting the mainland to the island and facilitating the movement of goods and people. Ensuring its maintenance and the quality of surrounding infrastructure projects is a priority for the government, as it directly impacts the city’s economic vitality.
Umahi’s inspection of the bridge, along with his visits to Rivers and Abia States, underscores the government’s hands-on approach to infrastructure development. By conducting regular inspections, the Ministry of Works is demonstrating its commitment to quality control and accountability. These inspections also provide an opportunity to identify systemic issues, such as the failure to apply wearing courses, and to implement corrective measures before they escalate into costly repairs.
Looking Ahead
As Nigeria continues to implement the “Nigeria First” initiative, the focus will be on balancing opportunity with accountability. Indigenous contractors must rise to the challenge of delivering high-quality work, while the government must provide the necessary support to help them succeed. This includes streamlining access to funding, improving regulatory frameworks, and investing in capacity-building programs.
The clarification from Senator Umahi sends a clear message: Nigeria’s infrastructure future lies in the hands of its people. By empowering indigenous contractors, enforcing quality standards, and promoting local content, the government is laying the groundwork for a stronger, more self-reliant nation. As the “Nigeria First” initiative gains momentum, it has the potential to transform not only the construction industry but also the broader economy, creating a legacy of sustainable development for generations to come.
In conclusion, the Federal Government’s clarification on the role of indigenous contractors marks a pivotal moment in Nigeria’s infrastructure journey. By opening opportunities for local firms to compete at all levels while maintaining a firm stance on quality, the government is fostering an environment where Nigerian expertise can thrive. The “Nigeria First” initiative, with its emphasis on local empowerment, technology transfer, and accountability, is a bold step toward building a future where Nigeria’s infrastructure reflects the strength and ambition of its people.
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