ABUJA — The Federal Government has announced new procurement guidelines mandating that all road construction projects executed under the Nigerian National Petroleum Company Limited (NNPCL) Tax Credit Scheme, valued below N20 billion, be awarded exclusively to indigenous contractors.
The directive, disclosed on Monday, is part of ongoing efforts to strengthen local participation in Nigeria’s infrastructure development and ensure that smaller-scale projects create direct opportunities for homegrown firms.
According to officials, the policy does not exclude foreign contractors entirely but places them in contention only for larger projects exceeding the N20 billion threshold. The government explained that the move is intended to boost the capacity of local construction companies, support job creation, and retain a greater share of project value within the Nigerian economy.
“The NNPCL Tax Credit Scheme has unlocked significant private sector investment in road infrastructure. It is only fair that Nigerian firms, particularly on projects of moderate size, are given priority to grow their expertise and capacity,” a senior official at the Ministry of Works said.
The tax credit programme, introduced under Executive Order 7 in 2019, allows private sector entities to finance the construction or rehabilitation of critical public infrastructure in exchange for tax incentives. The NNPCL has since emerged as a major player, funding a number of strategic roads across the country.
Industry stakeholders welcomed the restriction, describing it as a practical step toward empowering indigenous firms long overshadowed by multinational construction companies. However, analysts also cautioned that the government must ensure strict quality control and timely delivery to avoid project delays or substandard work.
With road infrastructure identified as a priority under President Bola Tinubu’s economic agenda, the policy shift is expected to redefine contractor participation in ongoing and future projects under the tax credit scheme.
