Hon Jesse Okey-Joe Onuakalusi, Oshodi/Isolo Federal Constituency II of Lagos State
By Ekuson Nw’Ogbunka
Abuja
In a bid to promote economic growth and self-reliance, Nigeria’s 10 House of Representatives is considering a new bill that prioritizes local manufacturers and indigenous companies in public procurement.
The bill has Thursday passed second reading.
The Local Industry Patronage Bill, 2024, sponsored by Hon Jesse Okey-Joe Onuakalusi, Oshodi/Isolo Federal Constituency II of Lagos State and consolidated by Hon. Obi Aguocha and Hon. Nnamdi Ezechi has Thursday passed second reading.
The Bill therefore aims to repeal the Local Content Act of 2010 and make it mandatory for Ministries, Departments, and Agencies (MDAs) to give preference to locally produced goods and services.
Hon. Onuakalusi, said the key provisions of the bill is to ensure that: all procurement exercises must prioritize local manufacturers and indigenous companies; goods and services meet quality standards set by regulatory agencies like the Standards Organisation of Nigeria (SON) and the National Food and Drug Administration and Control (NAFDAC); MDAs are prohibited from engaging in secret procurement that excludes local manufacturers and; foreign companies can only be considered if goods and services are not produced in Nigeria, not readily available, or fail to meet approved standards.
The Bureau of Public Procurement will enforce the bill’s provisions, by ensuring that the Due Process Office (DPO), Economic and Financial Crimes Commission (EFCC), and relevant bodies will monitor compliance and prosecute offenders.
On penalties, officers contravening the bill of mad an act face compulsory retirement, dismissal, or imprisonment up to 3-6 months, and fines up to N300,000-N500,000.
The bill also aims to attract foreign and local investors, strengthen the Naira, and promote economic self-reliance.
The Local Industry Patronage Bill, 2024, is a significant step towards promoting Nigeria’s economic growth and development. If passed, it will provide a much-needed boost to local industries and encourage entrepreneurship.
