Senate Passes Bill to Compel FG to Patronise Nigerian Products, Moves Mobilisation Fee to 25%

Fri, Jun 17, 2016
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Political Briefs

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THE Senate has passed an amendment to Public Procurement Act 2007 into law with provisions mandating governments at all levels to patronise locally-manufactured products. The bill was passed after the consideration of the report of the Senate Committee on Public Procurement presented by Senator Joshua Dariye, its chairman.

Tagged ‘A Bill for an Act to Amend the Public Procurement Act to Provide for and Adopt a Local Content Policy and Timely Completion of Procurement Processes and Other Related Matters,’ the bill provides amendments to some sections of the 2007 Procurement Act with the intention to promote the purchase of locally manufactured goods and also ensure speedy completion of projects.

Presenting the report, Dariye said the bill amended Section 15(1) of the Act by inserting additional clauses to close the gap created by the Act “as we have witnessed in the recent arms procurement saga.”

“Similarly, the issue of disposal which is an integral aspect of procurement has been aptly captured by the amendment in the new sub-clause 1(e). The committee has equally sustained the amendments of section 34(1,2) sought by the bill for the purpose of patronising made in Nigeria goods: this will go a long way to encourage our Nigerian manufacturers.

“The amendment proposed by the bill in section 35 is to review upwards the mobilisation fee from 15 per cent to 25 per cent that may be paid to a supplier or contractor. This is aimed at enhancing timely completion of Procurement Processes at various phases.”

The Senate also approved the inclusion of Nigerian Institution of Architects and the Nigerian Institute of Quantity Survey as Members of the National Council on Public Procurement.

After adopting the committee’s report and the subsequent conclusion of clause-by-clause consideration, the bill passed third reading and was proclaimed as passed.

In his remark, Senate President Bukola Saraki said the new amendments would enhance the nation’s economy. “We all have a role to play to ensure that the Executive comply especially in the area of giving first priority to locally produced goods. This has helped many countries to develop when they had issues of downturn in their economy.

“One of the things that we have done today is also trying to shorten the process of awarding contracts; this will go a long way in helping budget implementation. It would go a long way in ensuring that most of the funds are available as quickly as possible and jobs are actually completed. I want to commend my colleagues for passing this bill,” he said.

—  Jun 27, 2016 @ 01:00 GMT

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