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FG’s new order assures 40% local content in public procurement

Nigeria’s Acting President, Professor Yemi Osinbajo has signed an Executive Order (EO) to assure local content in public procurement by the Federal Government.

Based on the New Order, all Ministries, Departments and Agencies (MDAs) of the FGN shall grant preference to local manufacturers of goods and service providers in their procurement of goods and services or at least 40 percent of the procurement expenditure must be spent on made-in-Nigeria.

The Executive Order signed on Thursday takes effect immediately.
According to the document signed by Prof. Osibanjo, “Any document issued by any MDA of the FGN for the solicitation of offers, bids, proposals or quotations for the supply or provision of goods and services (Solicitation Document), in accordance with (1) above, shall expressly indicate the preference to be granted to domestic manufacturers, contractors and service providers and the information required to establish the eligibility of a bid for such preference.

“All Solicitation Documents shall require bidders or potential manufacturers, suppliers, contractors and consultants to provide a verifiable statement on the local content of the goods or services to be provided.

“Made-in-Nigeria products shall be given preference in the procurement of the following items and at least 40% of the procurement expenditure on these items in all MDAs of the FGN shall be locally manufactured goods or local service providers: Uniforms and Footwear; Food and Beverages; Furniture & Fittings; Stationery; Motor Vehicles; Pharmaceuticals; Construction Materials; and Information and Communication Technology”.

The Federal Government said that within 90 days of the date of the Order, the heads of all MDAs of the FGN shall: “assess the monitoring, enforcement, implementation, and compliance with this Executive Order and local content stipulations in the Public Procurement Act or any other relevant Act within their agencies;

“Propose policies to ensure that the Federal Government’s procurement of goods and services maximises the use of goods manufactured in Nigeria and services provided by Nigerian citizens doing business as sole proprietors, firms, or companies held wholly by them or in the majority; and

“Submit such findings to the Honourable Minister of Industry, Trade & Investment”.

Also, they are to within 180 days of the date of the order, in consultation with the Director-General of the Bureau for Public Procurement shall submit to the President, a report on the Made-in-Nigeria initiative that includes findings from paragraph 4 above.

“This report shall include specific recommendations to strengthen the implementation of Local Content Laws and local content procurement preference policies and programmes.

“For the purpose of this Order, ‘local content’ means the amount of Nigerian or locally produced human and material resources utilised in the manufacture of goods or rendering of services.

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