The Senate has taken a significant step towards empowering local contractors by resolving to amend the Public Procurement and Local Content Acts. This move aims to eliminate restrictive provisions that hinder the participation of local contractors in government contracts.
The decision was made after a motion was sponsored by Senator Suleiman Umar Sadiq, who highlighted the need to engage local contractors in small-scale federal government contracts to stimulate grassroots economic development. He noted that despite existing local content policies, many small-scale contracts are often awarded to larger, non-indigenous firms, limiting economic benefits to local communities.
Sadiq argued that engaging local contractors would enhance community participation, create jobs, and increase productivity. He also urged the Senate to direct the government to relax certain bidding requirements, such as three years of tax clearance for contracts below ₦50 million, to make them more accessible to local firms.
Several senators supported the motion, citing the need to amend the laws to allow local contractors to compete fairly. The Senate President, Godswill Akpabio, noted that he promoted local contractors during his tenure as governor of Akwa Ibom State and lamented that foreign firms often fail to build local capacity.
The Senate has directed its Committees on Public Procurement and Local Content to identify gaps in the existing laws and draft a bill to address them. The committees have been tasked with conducting a holistic review of the laws and expanding the compulsory involvement of local companies beyond the oil and gas sector to other sectors of the economy.
Some senators, like Adams Oshiomhole, cautioned that local contractors must be adequately equipped and competent to deliver quality work. The Senate’s move is expected to stimulate grassroots economic development and promote the growth of small and medium-sized enterprises (SMEs) and local contractors.
