The Senate has taken a major step toward reforming the nation’s contracting system by mandating its Committee on procurement to liaise with the Bureau of Public Procurement (BPP) to amend both the Public Procurement Act and the Local Content Act.
The proposed amendments aim to open up contract opportunities to newly registered companies and indigenous contractors, as part of a broader push to promote local economic development and reduce over-dependence on foreign firms
The call for reform followed a motion sponsored by Senator Suleiman Umar Sadik (APC, Kwara North), who highlighted the marginalization of local contractors in projects valued below N50 million.
He pointed out that many such contracts are awarded to large, non-indigenous firms, undermining the capacity and growth of small and medium-sized enterprises, which he described as the backbone of Nigeria’s economy.
During the deliberation, the Senate President, Godswill Akpabio, and other lawmakers amplified the need for an amendment to the Act to eliminate loopholes that currently allow foreign contractors, particularly Chinese firms, to dominate government contracts.
The Senate Committee on Procurement is now tasked with engaging the BPP to begin the legislative review process and recommend policy changes that will integrate local content and simplify qualification procedures for newly established firms.
