The Federal Government may soon amend Nigeria’s procurement and local content laws to promote greater participation of local contractors, including startups and newly registered companies, in public contracts.
This follows a resolution by the Senate during its Wednesday plenary, where it mandated its Committees on Public Procurement and Local Content to collaborate with the Bureau of Public Procurement (BPP).
The goal is to review and reform existing legislation in order to eliminate barriers that currently prevent small-scale and newly registered indigenous firms from bidding for federal contracts—particularly in construction and infrastructure development.
The Senate’s resolution was prompted by a motion sponsored by Senator Sadiq Suleiman (APC, Kwara North), who argued that the current framework systematically excludes small and medium-sized local enterprises from accessing government projects.
In his remarks, Suleiman stressed that enabling these local businesses to participate in public procurement processes would not only stimulate economic growth and job creation but also foster community development and ensure the retention of public funds within the national economy.
“The exclusion of our indigenous SMEs from federal contracts undermines economic inclusivity,” Suleiman declared. “These businesses, though young, are capable and must be given opportunities to prove themselves.”
During the debate, the motion received widespread support from lawmakers across party lines. Senator Mohammed Sani Musa (APC, Niger East) highlighted the economic significance of local participation, pointing out that many indigenous contractors possess the necessary expertise and capacity but are often denied opportunities because of outdated procurement rules.
Similarly, Senator Adamu Aliero (APC, Kebbi Central) questioned the rationale behind sidelining qualified Nigerian firms. “No Nigerian contractor, regardless of skill, can go to China and secure a government contract. Why then should we deny our own people the same opportunity in their country?” he asked.
Deputy Senate President, Barau Jibrin, echoed these concerns, describing the treatment of local contractors as unfair. He emphasized that while foreign partnerships are not inherently bad, local companies should not be perpetually disadvantaged.
“Our contractors are consistently being shortchanged,” Jibrin noted. “We’re not opposed to foreigners, but our own people must not be left behind. Amending the Local Content Act is essential to achieving equity.”
After the debate, Senate President Godswill Akpabio put the motion to a voice vote, which was unanimously adopted. In his closing remarks, Akpabio charged the relevant committees to work closely with the BPP in drafting the proposed amendments.
“This initiative will correct the systemic flaws in our contracting process. We cannot continue to lock out new firms just because they lack experience—how will they gain it without being given the chance?” Akpabio stated. “Someone must take the first step to empower them.”
If enacted, the revised laws are expected to unlock new opportunities for local entrepreneurs and businesses, ensuring a more inclusive and economically empowering federal procurement system.