Senate seeks review of procurement laws to support local contractors

The senate has urged the committees on local content and public procurement to liaise with the Bureau of Public Enterprises (BPE) to amend the public procurement and local content laws to support newly registered indigenous contractors.

The resolution followed a motion sponsored by Suleiman Umar Sadiq, senator representing Kwara north, titled: ‘The preponderant need to engage local indigenous contractors for the execution of small-scale federal government contracts to stimulate grassroots economic development’.

Leading the debate, Sadiq said the inclusion of local contractors in projects below N50 million would strengthen the economy, promote grassroots development and create employment across the 774 LGAs.

“Small and medium-sized enterprises (SMEs) and local contractors represent the bedrock of the Nigerian economy, possessing vast potential for job creation, wealth distribution, and local capacity building, particularly at the grassroots level,” he said.

The senator noted that despite the federal government’s renewed infrastructure push, smaller contracts are often awarded to larger firms with no ties to host communities.

“Engaging local contractors would significantly enhance community participation, job creation, increase productivity, foster a sense of ownership in public projects, and ensure that government spending directly circulates within local economies,” he added.

Contributing to the debate, Sani Musa, senator representing Niger east, appealed to the federal government to assist local contractors, especially those with low income.

Abdul Ningi, senator representing Bauchi central, described the motion as timely, adding that the proposal would be good for the economy and development of the country.

Senate President Godswill Akpabio said the motion aligns with the current economic priorities of the country.

“We should amend the act to accommodate local contractors. We should do the needful, which is allow our local contractors participate, so we don’t fritter away foreign exchange,” he said.

“It is important for this senate to tinker with these laws holistically to help in technology transfer to our people.”

Adamu Aliero, senator representing Kebbi central, agreed with the motion but called for legislative amendments to make the proposals actionable.

“As good as this motion is, I am afraid we can’t do anything until we amend the public procurement act. We should re-enact the public procurement act so that we will make it possible for local contractors to win projects,” he said.

Barau Jibrin, the deputy senate president, echoed the same concerns, stating that local contractors are being sidelined.

“Our contractors are being shortchanged. Jobs, contracts are given to foreigners. It’s not like we don’t like foreigners,” he said.

“We need to amend the local content act; it should be expanded beyond the oil and gas sector, it should include all areas of our economy.”

Jimoh Ibrahim, senator representing Ondo south, said new laws must compel compliance at both federal and state levels.

“Our laws must reflect our values. We must come up with laws to ensure that governors comply. It is unacceptable. We must start the foundation from here,” he said.

Adams Oshiomhole, senator representing Edo north, took a critical stance, citing personal experience.

“We must be completely holistic in addressing this issue. I had terrible experiences with Nigerian contractors as a governor. The Nigerian contractors have to invest in training and retraining of their workers,“ he said.

“The BPE itself adds no value; they just contribute to delays. Where is the expertise in that bureau? I am worried about a general policy of giving all contracts to natives.”

The motion was adopted after a voice vote by the senate president.