Senate to Review Procurement Act in Local Contractors’ Support
The Nigerian Senate has urged increased use of local contractors in executing small-scale federal government projects of less than N50 million to develop the grassroots and reduce poverty.
Senator Umar Sadiq Suleiman (Kwara North) in the motion drew attention to the marginalisation of indigenous contractors, arguing that small and medium-sized enterprises (SMEs) remain the backbone of Nigeria’s economy and should be empowered to contribute meaningfully to national development.
Senators highlight the harsh realities faced by local businesses, including stiff eligibility requirements such as three years of tax clearance, audited accounts, and experience thresholds that shut out many new entrants.
Senator Abdul Ningi noted that many Nigerians are unable to meet the conditions set by the Bureau of Public Procurement, making it difficult for them to access government jobs. He described the motion as timely and rooted in the needs of the people.
Senate President Godswill Akpabio, in his intervention, said Nigeria must stop awarding contracts that local firms are capable of handling to foreign companies.
He advocated for an amendment of the Public Procurement Act to open up opportunities for indigenous contractors, noting that even basic tasks like sweeping streets are now handled by foreign firms.
Senator Jimoh Ibrahim decried what he called the “post-colonial economic structure” that still limits local players, urging the Senate to enact holistic legislation that protects domestic entrepreneurs and ensures equitable access to public sector jobs.
Senator Adams Oshiomhole urged local contractors to invest in quality, equipment, and manpower training. He warned that patriotism should not override competence, recalling his experience as a former governor, where some local contractors delivered substandard work.
Other senators echoed the need for reforms, pointing out that beyond procurement issues, Nigerian graduates are often excluded from projects handled by foreign firms, with many relegated to menial roles despite being qualified.
The Senate concluded by backing amendments to the Public Procurement and Local Content Acts to prioritise indigenous businesses, foster inclusive economic participation, and reduce capital flight.
The motion underscores a growing consensus in the legislature to reorient Nigeria’s procurement system toward homegrown development and job creation.
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