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Experts Warn Preferential Contracts Threaten Nigeria’s Infrastructure Development

Policy analysts and industry stakeholders have raised concerns that the practice of awarding contracts based on favoritism rather than merit is undermining Nigeria’s infrastructure ambitions.

According to experts, preferential contract awards often result in inflated costs, poor-quality execution, and stalled projects, ultimately slowing the delivery of critical infrastructure such as roads, power, and housing.

“Transparency and competitiveness are the lifeblood of infrastructure development. When contracts are awarded on political or personal grounds, the nation pays the price in abandoned projects and wasted resources,” a governance analyst said.

The trend, critics argue, weakens investor confidence and deters private-sector participation, which Nigeria needs to bridge its estimated $100 billion annual infrastructure gap.

They urged government at all levels to prioritize merit-based procurement, strengthen oversight mechanisms, and enforce sanctions against violators to ensure public funds deliver real value.

Analysts add that unless addressed, preferential contracts could derail President Bola Tinubu’s infrastructure agenda and Nigeria’s broader economic growth targets.

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