FG denies limiting indigenous contractors to N20bn projects

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

Minister of Works, Senator Dave Umahi, gave the clarification on Wednesday during an inspection of the under-deck of the Carter Bridge in Lagos.

According to him, the new policy framework is designed to give local contractors more opportunities while reserving projects under N20 billion exclusively for them.

“They are not limited to just N20 billion,” Umahi explained. “What we are saying is that expatriate firms will no longer handle jobs below that threshold.

“Bigger indigenous contractors will also compete with expatriates for projects above N20 billion.”

The minister also issued a directive for the withdrawal of certificates from contractors who fail to cover binder courses on road projects.

“I observed serious lapses during my inspections in Rivers and Abia States,” he said. “Some contractors lay binder courses for 10 to 20 kilometres without applying the wearing course.

The binder course is like reinforcement—once it is left uncovered for more than two months, the road is already failing.”

Umahi stressed that the Federal Government would recover funds from contractors who deliver substandard jobs, warning that negligence would no longer be tolerated.