The Federal Authorities has clarified that indigenous contractors are usually not restricted to dealing with solely highway tasks valued beneath N20 billion.
Works Minister David Umahi gave the clarification on Wednesday throughout an inspection of the Carter Bridge in Lagos, as reported by the Information Company of Nigeria (NAN).
He defined that whereas expatriate corporations would not be awarded tasks beneath N20 billion, Nigerian contractors stay eligible to compete for contracts above that threshold.
This place adopted Umahi’s earlier announcement that each one highway contracts beneath N20 billion can be reserved solely for indigenous contractors, barring international firms from such tasks beneath the Ministry’s “Nigeria First” initiative.
“The Federal Authorities on Wednesday stated that it didn’t restrict indigenous contractors to jobs beneath N20 billion.
“The Minister of Works, Sen. Dave Umahi, made the clarification throughout a complete inspection of beneath deck of the Carter Bridge in Lagos State on Wednesday,” the NAN report learn partially.
It additional quoted Umahi as saying, “They don’t seem to be restricted to simply N20 billion. We’re saying that our expatriate corporations will not do jobs beneath N20 billion, and we’re saying that larger indigenous contractors can even compete with expatriates on jobs which can be above N20 billion.’’
Umahi additionally directed the withdrawal of certificates issued to contractors who did not cowl binder programs on roads, warning that substandard practices would appeal to sanctions.
He defined that leaving binder programs uncovered for greater than two months results in early highway failure, and that funds for such faulty work can be recovered from the contractors.
The Minister cited latest inspections in Rivers and Abia States, the place contractors had laid binder programs for as much as 20 kilometres with out making use of the carrying course. He emphasised that such practices would not be tolerated nationwide.
What it’s best to know
The reservation of highway tasks beneath N20 billion for indigenous contractors is a part of the Nigeria First Coverage of the Tinubu administration.
Contracts with out viable native options are required to incorporate provisions for expertise switch, expertise improvement, or native capability constructing.
This broader coverage framework explains the Ministry of Works’ resolution to order sub-N20 billion highway tasks solely for Nigerian corporations, whereas nonetheless permitting them to compete for bigger contracts.
