The Nigerian Senate has taken a significant step toward reforming the country’s procurement system by mandating its Committee on Procurement to engage with the Bureau of Public Procurement (BPP) to begin the process of amending the Public Procurement Act and the Local Content Act. The proposed amendments aim to open up contract opportunities to newly registered indigenous companies and local contractors, particularly for projects valued below ₦50 million, as part of a broader effort to promote grassroots economic development and reduce reliance on foreign firms.
The motion, sponsored by Senator Suleiman Umar Sadik (APC, Kwara North), highlighted the marginalization of local contractors in small-scale federal contracts, which are often awarded to large non-indigenous firms. Senator Sadik emphasized that small and medium-sized enterprises (SMEs) and local contractors are the backbone of Nigeria’s economy, with vast potential for job creation, wealth distribution, and capacity building at the local government level.
Senate President Godswill Akpabio and other lawmakers echoed the need to close loopholes in existing laws that allow foreign contractors, especially Chinese firms, to dominate government contracts. They called for legislative amendments to simplify qualification procedures and integrate local content requirements more effectively.
Key proposals include establishing a tiered bidding system that allows local contractors to compete for contracts within their local government areas, granting tax exemptions to eligible contractors, and strengthening the Federal Inland Revenue Service’s local desks to facilitate tax clearance and exemptions.
The Senate’s move has been welcomed as a timely intervention to boost local participation in government projects, enhance community ownership, and stimulate economic growth at the grassroots level. The Committee on Procurement is now set to collaborate with the BPP to draft and implement the necessary legislative changes.
