By Ify Onyekwere
The Nigerian Senate Committee on Science and Technology on the 26th of April 2023 held a public hearing on the Nigeria Content in Programmes, Contracts, Science and Technology and Innovation (NOPCESTI) (Establishment) Bill 2023. The bill aims to promote the use of local content in government procurement and contracts, create an enabling environment for ease of doing business, and enhance innovation in engineering, science, and technology.
The bill has received support from civil society organizations and procurement experts, who have emphasized the importance of local content in the performance and execution of government contracts and procurement.
According to data from the Organization for Economic Co-operation and Development (OECD), Nigeria lags behind other countries using local content in public procurement. In 2018, Nigeria\’s use of local content in public procurement was 25%, compared to 87% in Brazil, 80% in South Africa, and 70% in Malaysia.
These findings suggest that a lack of local content in public procurement may impede the growth of regional businesses and technologies. Foreign companies are less likely to transfer knowledge and technology to the local workforce when they receive contracts instead of domestic firms, which can stunt the development of local expertise and innovation. The economy, as well as local businesses, may be impacted by this lack of action.
The low use of local content in public procurement also undermines the government\’s efforts to promote economic diversification and reduce dependence on oil revenues. By promoting local content in government procurement and contracts, the government can stimulate growth and create jobs for Nigerians.
Amongst other speakers who spoke in favor of the bill, Mr. Mohammed B. Attah, a procurement expert who represented over twenty civil society organizations, made it clear that local content must be used in the performance and execution of government contracts and procurement. He expressed concerns about the NOPCESTI Act\’s ability to close gaps in the 2007 Procurement Act. He asked that it be closely looked into for progress in the Nigerian local content and development.
Speaking at the event, Engr. Ibiam Oguejiofo, the Federal Ministry of Science and Technology representative and National Coordinator of Presidential Order No 5 stated that the bill is timely and would improve and consolidate the work that Executive Order 5 intended to achieve through the appropriate legislative process.
He says, “Although local content is accessible, it must be overseen to avoid exploitation from foreign sources. Domestic preference is not comparing local content to international content but gives the country preference when bidding domestically. All facets of the economy have local content, and the bill needs to be strengthened”.
Engineer Oguejiofo noted that the tech and innovation center will focus more on a forum where people gather to discuss innovation. He said that it would not just be about a structure.
The bill, if passed, will create opportunities for local businesses and create a level playing field for local and foreign companies bidding for contracts and procurement in Nigeria. It will also enhance innovation, create jobs and improve the economy.
The Senate Committee on Science and Technology Chairman, Senator Uche Lilian Ekwuenefe, rounded off the discussion by assuring that the bill will do justice.
