Senate to amend procurement law, boost local contractor participation

The Senate has taken steps to revise Nigeria’s procurement and local content laws in a bid to open up contract opportunities for newly registered local contractors and small businesses.

During Wednesday’s plenary, the Senate mandated its Committees on Public Procurement and Local Content to collaborate with the Bureau of Public Procurement (BPP) on proposed amendments aimed at making the procurement process more inclusive.

This resolution followed a motion sponsored by Senator Suleiman Sadiq (APC, Kwara North), who raised concerns over the exclusion of local small and medium-sized enterprises (SMEs) from federal contracts, particularly in construction and infrastructure.

While presenting the motion, Senator Sadiq lamented the current practice that sidelines indigenous businesses, arguing that such exclusion hinders local economic growth. According to him, “Empowering local contractors would not only increase job creation but also stimulate community development and ensure that public funds circulate within the local economy.”

The motion garnered broad support from lawmakers during the debate.

Sani Musa (APC, Niger East) underscored the technical capacity of local contractors, stating that many are capable but are excluded by procurement criteria that favour larger or foreign firms.

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Adamu Aliero (APC, Kebbi Central) questioned the fairness of allowing foreign dominance in public contracts, asking: “No Nigerian contractor, no matter how skilled, can go to China and get a contract. I don’t see why we shouldn’t give our people the opportunity to participate in construction.”

Jibrin Barau, the Deputy Senate President echoed similar sentiments, emphasizing the need for legislative changes.

“Our local contractors are being shortchanged. It’s not that we don’t appreciate the role of foreigners, but our people shouldn’t be sidelined. The Local Content Act should be amended,” he said.

After listening to the contributions, Senate President Godswill Akpabio put the motion to a voice vote, which passed with overwhelming support.

Akpabio directed the relevant committees to work closely with the BPP to revise existing laws so they can accommodate startups and newly registered firms. He remarked: “I believe this will cure the defects we currently see in the contracting system and end the practice of shutting out capable but new companies.”

He added, “You can’t have experience if you’re never given the opportunity. Someone has to give you the chance to build that experience.”

Nigeria’s current procurement landscape has often been criticised for favouring well-established or foreign firms over local contractors. Despite the absence of a legal mandate on specific years of experience, many government Ministries, Departments, and Agencies (MDAs) require bidders to have at least 3 to 5 years of relevant experience, posing a major hurdle for emerging businesses.

In practice, these high entry requirements—such as large financial benchmarks and international certifications—limit access for SMEs and local startups.

A successful amendment of the procurement and local content laws could unlock billions of naira in contract value for indigenous firms, strengthen local technical expertise, and drive inclusive economic development across the country.