The Nigerian Senate has mandated Committees on Local Content and Public Procurement to ensure level playing ground for local contractors in the contract bidding process.
The Upper Chamber also urged the committees to liaise with Bureau of Public Procurement (BPP), other agencies to amend Procurement and Local Content Acts to give local contractors fair chance to contribute to the nation’s economic growth.
This followed adoption of a motion at plenary on Wednesday on need to engage local indigenous contractors for execution of Small-Scale Federal Government contracts to stimulate grassroots economic development.
The motion was sponsored by Senator Suleiman Sadiq APC- (Kwara).
Senator Sadiq in the motion said the federal government was committed to fostering inclusive economic growth, reducing poverty, and creating sustainable development and employment opportunities for its teeming population.
He said Small And Medium-Sized Enterprises (SMEs) and Local Contractors represent the bedrock of the economy, possessing vast potential for job creation, wealth distribution, and local capacity building at the grassroots level.
According to him, there is an existing local content policies and initiatives including the”Renewed Hope Infrastructure Development Fund” by the current administration.
He , however, said the numerous small-scale federal government contracts below the threshold of N50 million were often executed by larger, non-indigenous firms.
This, he said was limiting direct economic benefits to local communities and stifling the growth of nascent indigenous enterprises across the 774 local government areas.
He said engaging local contractors for such contracts would significantly enhance community participation, job creation, increase productivity, foster sense of ownership in public projects.
“It will ensure that government spending directly circulates within local economies” he said.
Senator Sani Musa (APC-Niger) said there was a need to engage local contractors with capacity to ensure inclusivity advising that BPP streamline its requirements on bidding and procurement to accommodate local contractors.
Senators Solomon Adeola (APC-Lagos) and Adamu Alero (APC-Kebbi), harped on need to revisit amendment of Local Content and Procurement Acts to make for seamless participation of local contractors.
Senator Adeola ,specifically called for amendment of the local content act suggesting its expansion to other sectors of the economy.
President of Senate, Senator Godswill Akpabio said the Senate would consider amending the BPP Act since it was becoming difficult for local contractors to win contract jobs award.
He said the amendment would make it easier for local contractors to participate and further contribute to development of the economy especially at the communities.