Senate To Boost Local Contractors’ Participation In Contracts

The Senate has directed its committees on Local Content and Public Procurement to ensure a level playing field for indigenous contractors in the federal contract bidding process.

This decision followed the adoption of a motion during Wednesday’s plenary session, which called for greater engagement of local contractors in executing small-scale federal government projects to drive grassroots economic growth.

The motion, sponsored by Senator Suleiman Sadiq (APC-Kwara), emphasised the federal government’s commitment to inclusive economic development, poverty reduction, and sustainable job creation.

Senator Sadiq highlighted the critical role that Small and Medium-sized Enterprises (SMEs) and indigenous contractors play in the economy, describing them as “the bedrock of job creation, wealth distribution, and local capacity building.”

He noted that despite existing policies such as the Renewed Hope Infrastructure Development Fund, many federal contracts below the N50 million threshold are still being awarded to large, non-indigenous companies.

He argued that this limits economic benefits to local communities and hinders the growth of smaller, community-based enterprises.

“Engaging local contractors for such contracts would significantly enhance community participation, job creation, and a sense of ownership in public projects,” Sadiq said. “It ensures government spending circulates within local economies.”

Supporting the motion, Senator Sani Musa (APC-Niger) stressed the importance of empowering local contractors with the capacity to deliver and urged the Bureau of Public Procurement (BPP) to streamline its bidding requirements to accommodate them.

Senators Solomon Adeola (APC-Lagos) and Adamu Aliero (APC-Kebbi) also called for amending the Local Content and Procurement Acts to facilitate Indigenous contractors’ easier participation in public projects.

Adeola notably advocated for expanding the scope of the Local Content Act to cover more sectors of the economy.

In his remarks, Senate President Godswill Akpabio acknowledged the challenges local contractors face in securing federal contracts.

He assured the Senate it would consider amending the BPP Act to lower entry barriers and enhance indigenous participation.

“The amendment will make it easier for local contractors to participate and further contribute to economic development, especially at the grassroots level,” Akpabio stated.