The House of Representatives has begun the process of passing into law Executive Orders 003 and 005 on local content issued by the Federal Government.
One of the bills being processed by the House seeks to enforce local content in all sectors of the Nigerian economy. It also seeks to enforce participation of the Nigerian workforce in all the sectors of the economy.
While the Vice-President, Prof. Yemi Osinbajo (SAN), as acting President on May 18, 2017, signed Executive Order 003, entitled, ‘Support for Local Contents in Public Procurement by the Federal Government,’ the President, Major General Muhammadu Buhari (retd.), signed Executive Order 005 on February 5, 2018.
Executive Order 003 makes it compulsory for Ministries, Departments and Agencies of the Federal Government to procure not less than 40 per cent of local goods and services, also known as “Made in Nigeria.”
Executive Order 005 also makes it compulsory for MDAs to give first preference to Nigerian professionals and firms, especially in the execution of projects relating to science, engineering and technology.
The House had on Tuesday last week passed for second reading, ‘A Bill for an Act to Enact Nigerian Local Content Act to Provide for the Development, Regulation and Enforcement of Nigerian Content in all Sectors of the Nigerian Economy except the Oil and Gas Sector.’
The Speaker of the House, Femi Gbajabiamila; Mr Ochiglegor Idagbo and six other members sponsored the bill.
Sponsors of the bill said it would replicate and consolidate the gains recorded with the enactment of the Nigerian Oil and Gas Industry Content Development Act, 2010, in other sectors of the economy.
The Executive Order 003, signed by Osinbajo, partly reads, “All Ministries, Departments and Agencies of the Federal Government of Nigeria shall grant preference to local manufacturers of goods and service providers in their procurement of goods and services.
“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.”
It added, “Made-in-Nigeria products shall be given preference in the procurement of the following items and at least 40 per cent of the procurement expenditure on these items in all MDAs of the FGN shall be locally manufactured goods or local service providers.”
Executive Order 005, signed by Buhari, also seeks to improve local content in public procurement with science, engineering and technology components. It was expected to promote the application of science, technology and innovation towards achieving the nation’s development goals across all sectors of the economy.
The President had ordered that all “procuring authorities shall give preference to Nigerian companies and firms in the award of contracts, in line with the Public Procurement Act, 2007.”
The Executive Order also prohibits the Ministry of Interior from giving visas to foreign workers whose skills are readily available in Nigeria. It, however, notes that where expertise is lacking, procuring entities will give preference to foreign companies and firms “with a demonstrable and verifiable plan for indigenous development prior to the award of such contracts.”
Buhari had also directed MDAs to engage indigenous professionals in the planning, design and execution of national security projects. The Order adds that “consideration shall only be given to a foreign professional, where it is certified by the appropriate authority that such expertise is not available in Nigeria.”
Idagbo, while leading debate on the bill, said it had become necessary for local players in other sectors to be empowered for the post-oil and gas era and become strong brands nationally and internationally. He also noted that the move would ensure higher employment, capacity-building and socio-economic security.
Idagbo said, “The proposed bill also seeks to provide the legal basis for enforcement of Presidential Executive Orders 003 and 005 on local content signed by President Muhammadu Buhari.
“The gains so far made as a result of the enactment of the NOGICD Act, 2010 is record-breaking. Nigerians have greatly increased their expertise in petroleum exploration and now extend their businesses to neighbouring countries. Trillions in naira terms have been saved as a result of local participation in the oil and gas industry.”
