Senator Sadiq Suleiman Umar, representing Kwara North Senatorial District and Chairman of the Senate Committees on Trade and Investment as well as Rules and Business, on Wednesday sponsored a significant motion on the floor of the Nigerian Senate.
The motion calls for a “transformative shift” in Nigeria’s public procurement process, urging the Federal Government to prioritize indigenous contractors for small-scale projects valued below ₦50 million.
According to Senator Sadiq, this “bold move” is strategically designed to stimulate grassroots economic development, create jobs, and ensure that federal spending directly translates into tangible local impact across Nigeria’s 774 Local Government Areas.
Key Highlights of the Motion Include:
1. Preferential engagement of local contractors for Federal Government projects valued at ₦50 million or below.
2. Implementation of a three-tier bidding system to broaden access and promote fair and inclusive competition.
3. Provision of tax exemption incentives to enhance working capital and business viability for small contractors.
4. Establishment of Federal Inland Revenue Service (FIRS) Local Desks to simplify tax documentation and access for indigenous businesses.
5. Urgent call on the Bureau of Public Procurement (BPP) to adopt inclusive procurement guidelines that ease the participation of small, local businesses.
Senator Sadiq further emphasized that contractors in each Local Government Area with the requisite workforce to deliver contracts should be given preferential treatment. He advocated for awarding such contracts with minimal prerequisites, streamlined specifically to Corporate Affairs Commission (CAC) registrations and tax compliance only, stressing that other complex federal government requirements, which often exclude local contractors from the bidding processes, should be significantly relaxed.
The lawmaker highlighted that this initiative aligns perfectly with the “Renewed Hope Agenda” of the current administration, aiming to unlock the full potential of local enterprises across the country.
