No More Foreign Firms? Umahi Drops Shocking Directive

No More Foreign Firms? Umahi Drops Shocking Directive

In a bold move that has sent ripples across Nigeria’s construction sector, the Minister of Works, David Umahi, has announced a new policy that could dramatically change how government contracts are awarded.

Speaking in Abuja on Sunday, Umahi declared that all federal contracts worth less than ₦20 billion will now be reserved strictly for local contractors. The move, he said, is part of the government’s “Nigeria First” agenda, designed to strengthen indigenous companies and boost the nation’s economy.

“This administration is committed to empowering local contractors and ensuring that Nigerian firms get the opportunities they deserve,” Umahi stated. “Henceforth, no foreign firm will be considered for any project below ₦20 billion.”

The announcement has sparked mixed reactions. While many local contractors have welcomed the directive as a long-awaited chance to compete fairly, industry insiders warn that the move could trigger debates about quality control and the capacity of smaller firms to deliver large-scale projects on time.

Analysts say the policy could re-shape Nigeria’s construction landscape, forcing foreign firms to bid only for mega projects while local companies dominate smaller but numerous federal contracts.

Whether this bold step becomes a turning point for indigenous contractors or a fresh battleground in Nigeria’s infrastructure development remains to be seen.