Business
FG Contracts: Senate Harps On Nigerian Made Goods
In line with the expectations
of patriotic Nigerians, the Senate has taken a step towards enforcing the patronage of made in Nigeria goods in the award and implementation of government contracts, as the upper chamber last Thursday passed for third reading the Bill seeking to Amend the Public Procurement Act (2007).
Going by the general principle of the bill, if finally signed into law by Mr. President, the bill will provide for and adopt a local content policy and timely completion of procurement process, to enable local manufacturers have the chance to be considered in government contractual procurements.
Presenting the report of the committee to the Senate at plenary , the chairman of the Senate Committee on Procurement, Joshua Dariye, noted that the provisions of the Bill will boost the confidence of the local manufacturers as the committee upheld the section that stipulated local content priority.
The committee also recommended the immediate constitution of the National Council on Public Procurement (NCPP) by the President, which will take away from the Federal Executive Council (FEC) the responsibility of awarding contracts and place such duty on the NCPP, to be chaired by the President.
Senator Dariye reported that “The Committee has equally sustained the amendment sought by the Bills for the purpose of patronising made in Nigeria goods, alongside foreign goods. This will go a long way to encourage our Nigerian manufactures and by extension provide job opportunities for our teeming unemployed youths”
He also explained that the committee rejected part of the amendment proposed by the Bill, which seeks to review upwardly the mobilisation fee to be paid contractors from 15% to 25%, saying this is in view of the current downturn in the nation’s economy whereby a considerable percentage of the national budget would be financed through borrowing.
“The committee believes that it does not make any economic sense to borrow at high interest rate and give up to 25% of contract sum to the same contractors that will be paid profit afterwards; and it is in conflict with section 2930 of the Financial Regulations of the Country”, he continued .
Explaining further, senator Joshua Dariye pointed out that the committee enhanced the time for completion of procurement processes at various phases, while Section (1) was amended by adding sub section (2) to give the President the powers to appoint the chairman of the council, which he said is in line with Sections 171 and 172 of the 1999 Constitution (as amended).
Briefing journalists after the bill was passed, senator Dariye also said the committee enlarged the membership of the National Council on Procurement to include the Nigerian Institute of Architects and the Nigeria Institute of Quantity Surveyors, pointing out that the two bodies are very vital to any capital project which he said was the major aspect of procurement.
Meanwhile, he said that by the time the Bill was assented by the President, the Federal Executive Council will no longer be in charge of awarding and approving contracts, but the National Council on Procurement will be charged with the responsibility as provided in the Constitution of the country.
He equally expressed hope that President Mohammadu Buhari, would not hesitate to sign the bill into law the moment the National Assembly forwarded it to the Presidency.
Nneka Amaechi-Nnadi
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