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Nigeria First Policy: Tinubu’s Bold Economic Strategy and FEC’s Massive Road Construction Budgets
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In a transformative move to bolster Nigeria’s economy and prioritize local industries, President Bola Tinubu’s administration has introduced the Nigeria First policy, a groundbreaking framework approved by the Federal Executive Council (FEC) on May 5, 2025. Dubbed the Renewed Hope Nigeria First Policy, this initiative aims to foster a business culture that champions local content, reduces reliance on foreign imports, and drives sustainable economic growth.
Alongside this policy, the FEC has approved substantial budgets for road construction projects, totaling over ₦787.14 billion and $651.7 million, to enhance Nigeria’s infrastructure. This blog post explores the intricacies of the Nigeria First policy, its potential impact on the economy, and the significance of the FEC’s recent road construction approvals, offering insights into how these developments could shape Nigeria’s future.
Understanding the Nigeria First Policy
The Nigeria First policy is a strategic economic blueprint designed to place Nigerian industries and citizens at the heart of public procurement and business transactions. Announced by the Minister of Information and National Orientation, Mohammed Idris, the policy mirrors the America First doctrine, emphasizing local content promotion to empower domestic industries. It mandates that Ministries, Departments, and Agencies (MDAs) prioritize locally produced goods and services, prohibiting the procurement of foreign equivalents without a written waiver from the Bureau of Public Procurement (BPP).
This policy is a cornerstone of Tinubu’s economic reforms, which include subsidy removals, a new foreign exchange regime, and efforts to restore investor confidence. By prioritizing local content, the government aims to stimulate job creation, foster industrial growth, and reduce Nigeria’s dependency on imports. The FEC has directed the Office of the Attorney General of the Federation to prepare an Executive Order to provide legal backing, ensuring swift implementation once signed by President Tinubu.
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The Nigeria First policy is expected to reshape how the government spends, procures, and builds the economy. According to Minister Idris, it seeks to foster a “bold, confident, and very Nigerian” business culture, positioning Nigeria as a self-reliant economic powerhouse. This aligns with the administration’s broader vision of structural economic reform, which has already attracted multi-billion-dollar commitments from global firms like Shell, Total, ExxonMobil, and SALIC.
Impact of the Nigeria First Policy
The Nigeria First policy is poised to have far-reaching implications for Nigeria’s economy, industries, and citizens. Below are some key impacts:
- Boosting Local Industries
By prioritizing locally produced goods, the policy will stimulate growth in sectors such as manufacturing, agriculture, and technology. Small and medium-sized enterprises (SMEs), which form the backbone of Nigeria’s economy, stand to benefit significantly. Increased demand for local products will encourage entrepreneurship, innovation, and industrial expansion, fostering local content promotion. - Job Creation and Economic Empowerment
The policy is expected to create millions of jobs by driving demand for local goods and services. As industries scale up to meet government procurement needs, employment opportunities will expand, particularly for youths and women. This aligns with Tinubu’s Renewed Hope Agenda, which emphasizes wealth creation and poverty alleviation. - Reducing Import Dependency
Nigeria’s heavy reliance on imports has long strained its foreign exchange reserves. The Nigeria First policy aims to curb this by promoting self-sufficiency. By banning the procurement of foreign goods available locally, the government will conserve foreign exchange, stabilize the naira, and strengthen the economy. - Enhancing Investor Confidence
The policy signals to investors that Nigeria is committed to fostering a robust domestic market. Coupled with Tinubu’s economic reforms, such as improved business climates and increased oil output, the policy is likely to attract both local and foreign investments, further driving economic growth. - Challenges and Implementation Hurdles
While the policy holds immense promise, it may face challenges, including resistance from entrenched procurement interests and the need for robust enforcement mechanisms. Ensuring compliance across MDAs and addressing potential supply chain gaps will be critical to its success.
FEC’s Approved Budgets for Road Construction
In tandem with the Nigeria First policy, the FEC has approved significant budgets for road construction projects to bolster Nigerian infrastructure development. On May 5, 2025, the council sanctioned ₦787.14 billion and $651.7 million for revised and new road contracts across 13 states, as announced by Minister of Works, Dave Umahi. These approvals are part of a broader strategy to rescope inherited projects, align them with budgetary realities, and prioritize completion.
Key Road Construction Approvals
- Akure-Eta-Ogbese-Iju-Ekiti to Ikere-Ado-Ekiti Road (Ondo and Ekiti States)
This 18.4km dual carriageway was rescoped to 15km, with a revised cost of ₦19.4 billion. The project aims to improve connectivity between Ondo and Ekiti, facilitating trade and mobility. - Sokoto-Zamfara-Katsina-Kaduna Dual Carriageway
Originally awarded for ₦105 billion, this 375km project has been rescoped to cover 82.4km, including six bridges, within the same budget. This adjustment ensures efficient use of resources while enhancing connectivity in northern Nigeria. - Maiduguri-Monguno Road (Borno State)
The 105km road has been segmented into phases, with the first 30km awarded for ₦21 billion. This project is critical for improving access in Borno, a region affected by security challenges. - Abakaliki-Afikpo Flyover (Ebonyi State)
Awarded for ₦25 billion, this new project will alleviate traffic congestion and boost economic activities in Ebonyi. - Ikoga and Atan-Alapoti-Ado-Odo Road (Ogun State)
Approved for ₦37.045 billion, this project will enhance infrastructure in Ogun, supporting industrial and commercial growth. - Enugu-Onitsha Expressway
A 77km stretch was approved for ₦150 billion, partly funded through a tax credit scheme with MTN Nigeria. This project will improve connectivity in the southeast, a key economic hub. - Benin-Shagamu-Ore Road
The remaining 96km section was awarded for ₦187 billion, addressing a critical route for trade and transportation. - 7th Axial Road (Lekki Deep Sea Port)
This 50km evacuation corridor, including 5km of bridges, is set to be funded by a $651.7 million facility from the China Exim Bank. President Tinubu personally presented this project to Chinese authorities, underscoring its importance.
Additional Approvals
Earlier in 2025, the FEC approved ₦242.68 billion for 14 road projects (February 4) and ₦679 billion for 13 road contracts (March 6). Notable projects include the Agaie-Katcha-Baro Road in Niger State (₦22 billion), the Odukpani Junction Road in Cross River State (₦26.335 billion), and the Aba-Ikot Ekpene Road dualization (₦30 billion). These approvals reflect the government’s commitment to upgrading Nigeria’s road networks.
Impact of Road Construction Investments
The FEC’s road construction budgets are set to transform Nigerian infrastructure development in several ways:
- Improved Connectivity: Enhanced road networks will facilitate the movement of goods and people, boosting trade and economic activities across states.
- Economic Growth: Infrastructure development is a catalyst for job creation and industrial expansion, aligning with the Nigeria First policy’s goals.
- Regional Development: Projects in underserved regions, such as Borno and Ebonyi, will promote inclusive growth and address regional disparities.
- Public-Private Partnerships: The use of tax credit schemes (e.g., MTN Nigeria) and international funding (e.g., China Exim Bank) demonstrates innovative financing models.
Synergy Between Nigeria First Policy and Road Construction
The Nigeria First policy and FEC road construction budgets are complementary initiatives that reinforce Tinubu’s vision for a self-reliant and infrastructurally robust Nigeria. The policy’s emphasis on local content promotion ensures that road construction projects prioritize Nigerian contractors and materials, boosting local industries. For instance, the use of continuous reinforced concrete pavement, as highlighted by Minister Umahi, reflects a shift toward durable, locally sourced solutions.
Moreover, the infrastructure investments align with the policy’s goal of economic empowerment. By improving road networks, the government creates an enabling environment for businesses to thrive, further driving demand for local goods and services. The Tinubu economic reforms underscore this synergy, positioning infrastructure and local content as twin pillars of Nigeria’s economic transformation.
Challenges and Future Outlook
While the Nigeria First policy and road construction budgets hold immense potential, several challenges must be addressed:
- Implementation: Ensuring compliance with the Nigeria First policy across MDAs requires robust monitoring and enforcement mechanisms.
- Funding Constraints: Nigeria’s fiscal challenges, with oil prices below budget benchmarks, may strain project financing. Innovative funding models, such as public-private partnerships, will be crucial.
- Project Delays: Past road projects have faced delays due to funding issues or contractor inefficiencies. The government must prioritize timely completion, as emphasized by Umahi.
Looking ahead, the success of these initiatives will depend on transparent execution, stakeholder collaboration, and sustained political will. If effectively implemented, the Nigeria First policy and FEC road construction budgets could position Nigeria as a regional economic powerhouse, with a vibrant domestic market and world-class infrastructure.
Conclusion
The Nigeria First policy, coupled with the FEC’s substantial road construction budgets, marks a pivotal moment in Nigeria’s economic and infrastructural journey. By prioritizing local content promotion and investing in Nigerian infrastructure development, President Tinubu’s administration is laying the foundation for sustainable growth, job creation, and self-reliance. As the Tinubu economic reforms continue to unfold, Nigerians can look forward to a future where local industries thrive, roads connect communities, and the nation stands tall as a beacon of economic resilience. Stay tuned for more updates on these transformative policies and their impact on Nigeria’s development trajectory.
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