The Federal Ministry of Works is prioritizing funding for tax credit projects inherited from the Nigerian National Petroleum Corporation Limited (NNPCL) to align with the Nigeria First policy.
According to the Minister of Works, David Umahi, all contracts valued below ₦20 billion will be awarded exclusively to local contractors to boost indigenous participation.
During an inspection of the ongoing dualization of the East-West Road (Section IIIA) from Eleme Junction to Onne Junction in Rivers State, managed by RCC Nigeria Ltd, Umahi elaborated on the policy.
He noted that one carriageway of the project has been completed and commissioned, with additional work like retaining walls and drainage ordered.
The second carriageway, including bridges and flyovers, is underway but faced funding challenges due to NNPCL’s halt on tax credit financing.
Umahi revealed that the Ministry compiled a list of all NNPCL tax credit projects and presented it to President Bola Tinubu, who directed that no such projects should stop.
The Ministry will now prioritize critical projects within the national economic corridor, like the Eleme-Onne dualization, for immediate funding.
The Minister also addressed a recurring issue observed during inspections across Nigeria’s six geopolitical zones, where contractors lay stone base and binder course asphalt over long stretches—sometimes exceeding 20 kilometers—without applying the wearing course.
He explained that the binder acts as reinforcement in road architecture, while the wearing course seals the surface to prevent water penetration. Without the wearing course, water seeps into the stone base, causing road failure over time.
To address this, Umahi issued a nationwide directive: if a binder course remains exposed for more than two months without the wearing course, the Ministry will invalidate the project certificate, requiring contractors to remove and redo both the binder and stone base.
This measure aims to ensure the durability and quality of road infrastructure projects across the country.
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