Nigeria changes procurement law to boost local content

22 June 2016

A bill amending Nigeria’s 2007 Procurement Act to provide extra help for local suppliers has been passed by the country’s parliament.

The amendment allows for increased “mobilisation funds” for contractors who successfully complete contracts on time, representing 25% of the contract value, up from the current maximum of 15%.

Chairman of the Procurement Committee, Senator Joshua Dariye, said the bill aims to favour local manufacturers and ensure speedy completion of projects. It is now waiting for presidential assent before becoming law.

Meanwhile, the Nigerian Institute of Architects and the Nigerian Institute of Quantity Surveyors have been made members of the National Council on Public Procurement, one of Nigeria’s two regulatory procurement bodies.

The Nation newspaper has reported that 8,500 procurement officers have been trained by the federal government through the Bureau of Public Procurement (BPP).

It quoted acting director-general of BPP, Ahmed Abdu, as saying that previously public procurement had been handled by non-professionals costing the government huge sums of money.

He said the bureau had been organising training over the last five years.

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