• Nigeria will award road construction projects under $13.2 million to local companies.
• The policy aims to strengthen the national economy, create jobs, and reduce capital flight.
• The Nigerian National Petroleum Company Limited (NNPC Ltd) previously funded many of these projects.

The Ministry of Works announced that road construction projects funded by the Nigerian National Petroleum Company Limited (NNPC Ltd) with a contractual cost below 20 billion naira (approximately $13.2 million) will now go to local firms. This decision seeks to favor Nigerian businesses, generate new employment opportunities, and curb capital flight.

Until August, NNPC Ltd had funded numerous road projects under a Buhari administration initiative. This initiative involved pre-financing projects in exchange for tax credit compensation. Local press reports indicate these commitments totaled nearly 3 trillion naira. The current administration plans to continue these projects through new financing mechanisms.

Analysts suggest this policy could significantly boost local companies, granting them access to more national-scale projects. Nigerian firms completing these projects could also enhance their technical expertise.

For this initiative to succeed, the government must implement transparent mechanisms to prevent favoritism in contract awards.

This article was initially published in French by Henoc Dossa
Adapted in English by Ange Jason Quenum