Public Procurement Bill.

Ayes! The Local Manufacturers Have It

By Abu Quassim

Last Thursday, the Senate made a major move that further underscored its determination to make itself relevant to all Nigerians, particularly in the area of economic development and empowerment of the people. It passed the Act to amend the National Public Procurement Act to Provide for a Local Content Policy and Timely Completion of Procurement and Other Related Matters Bill.

Beyond the turenci that one can see in the long title of the proposed law now awaiting concurrence of the House of Representatives and Presidential assent, of what relevance is the bill to an average Nigerian? To answer this question, one may need to look at one of the objectives of the bill as stated in Section 5 ( w). It states that the Bureau of Public Procurement (BPP) established under it " shall assist and support the local business community to become competitive and efficient supplier to the public sector". The essence of this function translates beyond creating a synergy between the public and private sectors for the purpose of enhancing their joint contribution to national development and growing the nation's Gross Domestic Product (GDP).

It also means that the Bureau will specifically introduce measures to ensure that Nigerian entrepreneurs will by law compulsorily enjoy patronage from government organisations. And to give effect to the objective, the proposed law amended Section 34 sub-sections 1, 2 and 3 of the existing law by replacing the word MAY to SHALL. The new law raises the duty on government ministries, departments and agencies to purchase locally made goods, patronise Nigerian manufacturers and entrepreneurs and engage Nigerian service providers from discretion to compulsion.

Section 34 (1) states that "A procuring entity shall grant a margin of preference in the evaluation of tenders when comparing tenders from domestic bidders with those of foreign bidders or when comparing tenders from domestic suppliers offering goods manufactured abroad".

Also Section 34 (2) adds that "where a procuring entity has allowed domestic preferences, the bidding documents shall clearly indicate any preference to be granted to domestic suppliers and contractors and the information required to establish the eligibility of a bid for such preference". The following sub-sections however provides that "margin of preference shall apply to tenders under international competitive bidding" and that the BPP "shall by regulation from time to time set their limits and the formulae for the computation of margins of preference and determine the contents of goods manufactured locally".

The total effect is that procurement by government, which in the Nigerian context as at today is the biggest spender and purchaser of goods, will show preference for goods made in Nigeria. So, the bulk of the over N6 trillion budgeted to be spent in the 2016 appropriation law which is due to expire next March will go into the pockets of Nigerian manufacturers, suppliers, contractors, artisans and other service providers. The further implication of this law is that many companies owned by Nigerians or based in Nigeria will benefit from this huge fund.

This is a law capable of further energising existing and functional companies, reviving the ailing or dead ones and inspiring establishment of new industries and professional firms. What this translates to is creation of employment among our skilled youths, rekindling and challenging the creativity of Nigerians and creating empowerment and wealth for Nigerians without any borders. It is a law aimed at unleashing the potentials of Nigerians to earn money through legitimate means and become key participants or stakeholders in the national economy.

Another benefit of the proposed law is how it seeks to reduce the number of days for the Standard Procurement Processing Time for QCBS. From the period of preparation of terms of reference to signature of contract, the number of days was reduced from a minimum of 165 days to a maximum of 112 days. What this means is that the period of award of contract has been significantly reduced The law ensures that shortly after passage of budget, the funds in it will be freed and made available to circulate in the economy.

More importantly, the law was designed to protect the country from sharp practices by fraudulent businessmen and their collaborators in government procurement offices. That is the purpose of Section 6 (d) I and ii (e) (f), (g) as well as (h). The section gives the BPP the power to set, enforce, maintain and sustain standard and impose disciplinary measures.

Also, Section 16 (d), (e) and (f) set fundamental principles of public procurement which it states should be conducted "in a manner which is transparent, timely, equitable for ensuring accountability and in conformity with this Act"..."with the aim of achieving value for money and fitness for a purpose"..."in a manner which promotes competition, economy and efficiency". These are provisions which complement the anti-corruption agenda of the present administration.

The target of the law is therefore to make Nigerians benefit from the national wealth, in a transparent manner that will benefit the country. This bill is an award winning one which ought to be commended. Here, the Senate deserves to be given the Prize for the revolutionary legislation of the year as a result of this proposed law. Definitely, its effective utilization can cure poverty, reduce unemployment and aid genuine 'Nigerianisation' and modernization of the nation's economy.

One would have expected that such a bill would have emanated from the executive, particularly as it fits into some of the cardinal objectives of the Buhari administration. In other climes where these laws have been effectively implemented, they were initiated by the Executive. For example, in the United States, President Herbert Hoover introduced a similar law in 1922 to give legal teeth to the Buy America Policy introduced to cushion the effects of the Great Depression era.

If we are having this law introduced by the upper legislative chamber, then it is a big credit to the Nigerian lawmaking institution. That is why the co-operation between the legislature and the executive is a sine qua non to developing Nigeria. It is also the reason why Nigerians should call on President Muhammadu Buhari to quickly assent to the law once it is submitted to him. This is another indication that the eighth Senate cares, works and thinks for Nigeria.

Quassim resides in Abuja.

Nice

In other news when is the BPP recruitment abeg?