Local Content: FG excludes foreign firms from less N5bn contracts
Foreign firms in Nigeria will no longer be awarded contracts that are not above N5billion as a way of encouraging indigenous firms in line with the planned local content laws in the country, the federal government has declared.
Minister of State, Works and Housing, Abubakar D. Aliyu, who dropped the hint
during an interface with the National Assembly joint Committees on Local Content, said contracts worth N5billion and below would henceforth be exclusively preserved for indigenous firms.
“As part of measures being put in place to for strengthening of local content laws in the country, contracts that are not more than N5billion are to be exclusive preserve of indigenous firms or companies for bidding, award and execution,” he said.
But when asked by the chairman, Senate Committee on Local Content, Senator Teslim Folarin (APC Oyo Central) on whether the new policy affects construction firms like Julius Berger, the minister said proper categorisation will be done to determine that.
“Julius Berger Plc is more or less an indigenalised foreign firm going by high involvement of Nigerians in its operations and management over the years which makes its categorization in this respect a bit difficult,” he said.
Aliyu added that other measures like registration of expatriates and proof of valid residence permit etc, are also part of recommendations being made into the local content development bill.
Earlier in his remarks at the commencement of the second day session, Senator Folarin said the three bills being considered are very important and sacrosanct to the development of the country’s oil and gas industry, which is one of the most viable sectors of the economy.
He explained that the bills, among other things, seek to consolidate on the gains of the implementation of local content component in the oil and gas industry, pursuant to the enactment of the Nigerian Oil and Gas Industry Content Development, NOGICDAct, 2010.
“One of the bills also seeks to provide the needed legal framework for the implementation of local content in other key sectors of the economy, including power, ICT, Construction and Transportation.
“The enactment of this bill, will no doubt, provide the legal basis for the enforcement of the Presidential Evecutive Order No. 5 of 5th February, 2018, which seeks to improve local content procurement with regards to science, engineering and technology
components of the economy,” he said .
Copyright 2023 ROYAL NEWS. All rights reserved. Digital material on this website, may not be published, reproduced, broadcast, rewritten or redistributed in whole or in part without prior express written permission from ROYAL NEWS.
Download ROYAL NEWS app
- DSS confirms plot by disgruntled elements for Interim Government
- Naira gains, exchanges N461.24 against dollar
- Buhari approves appointment of 6 new Perm Secs.
- Gawuna accepts defeat, congratulates Kano Gov-elect
- Senate urges banks to resume operations in Akwa Ibom
- Man arrested for allegedly raping 9-month-old baby in Lagos
- One Judge dismissed, two others demoted in Niger state
- OYO SUBEB Monitors Unified Exams
- I won’t run from EFCC after handover — Wike
- NASS prescribes 5-yr jail term for defaulters in Fed Audit Bill