The leadership of the Nigerian Society of Engineers (NSE) and the Association of Consulting Engineering in Nigeria (ACEN) on Monday solicited the National Assembly’s intervention to end the persistent preference by some Federal Ministries, Departments, and Agencies (MDAs) for foreign contractors, in violation of Executive Order 8, the Public Procurement Act, and the Local Content Act.
The experts, led by NSE President Engineer Margaret Oguntala and ACEN President Engineer Kam-Selem Bukar, made this appeal in Abuja during the one-day Local Contractors Summit themed “Empowering Local Contractors for National Development: Bridging Gaps and Building Partnerships,” organized by the National Assembly’s Committee on Works.
In her address, Engineer Oguntala described Nigerian contractors as essential to the nation’s journey toward sustainable development. She argued that their “contributions reflect their craftsmanship and embody the drive to strengthen local capacity and provide economic opportunities within our country.”
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“In light of this, we must highlight an important issue that has posed challenges for our contractors. It is concerning that some agencies still prefer foreign contractors for projects that Nigerian companies are more than capable of executing. By bypassing our contractors, they undermine national talent and effectively evade the Local Content Law, a law meant to prioritize and protect our domestic capacity and resources.”
“I strongly urge the National Assembly to take decisive steps to bridge this gap by advancing legislation that enforces strict adherence to our Local Content Law. We need a law that supports local contractors and actively deters and penalizes acts of non-compliance. Such legislation will empower local contractors and protect our interests by ensuring that Nigerian talent, resources, and potential are maximized.”
“To our local contractors, I want to say that this empowerment also brings responsibility. When awarded contracts, it is essential to deliver quality work on time, every time. By consistently meeting or exceeding expectations, you earn the trust of those who award projects and inspire confidence in the capability of local expertise. Remember, each project is an opportunity to demonstrate the excellence within our local contracting community and contribute directly to Nigeria’s development journey.”
“I also call on all stakeholders, including the private sector, government agencies, and advocacy groups, to continue sustaining this campaign for prioritizing Nigerian contractors. By doing so, we will create a robust support system that builds partnerships between local contractors and other industries, making our nation less reliant on external resources and more focused on developing our own,” the NSE President emphasized.
In his remarks, ACEN President Engineer Kam-Selem Bukar highlighted the need for investment in human capital to better prepare contractors to meet project demands and reinforce local content requirements under Executive Order 5.
He also stressed the need to improve transparency in public procurement processes to build trust among stakeholders. By implementing clear guidelines mandating local content, MDAs can minimize corruption and foster fair competition among contractors.
“To achieve robust monitoring and evaluation frameworks for compliance with Executive Order 5 is crucial. Involving all stakeholders in this process ensures accountability and allows for adjustments based on feedback and performance outcomes,” Bukar noted.
He also called on the government to introduce incentives for MDAs that successfully implement local content requirements, encouraging both engineers and contractors to prioritize Nigerian resources and expertise. He further emphasized the need to strengthen regulatory oversight by COREN, in collaboration with consulting engineers and local contractors, to ensure compliance with established standards and support the effective implementation of Executive Order 5.
In his address, Chairman of the Senate Committee on Works, Senator Barinada Mpigi, highlighted the challenges local contractors face, including limited financing, inadequate equipment, and insecurity, while calling for innovative solutions like the tokenization of assets and tax credits to bridge the financial gap.
He lamented the lack of opportunities for indigenous contractors over the years in the nation’s infrastructure sector.
“Our local contractors face significant challenges that hinder their potential to contribute to national goals. Challenges such as limited access to long-term financing, inadequate equipment, lack of insurance facilities, and issues of insecurity have long been obstacles to their growth and success.”
“Globally, other nations have implemented strategic measures to support their local contractors. From government financing and public-private partnerships to streamlined procurement processes, these countries have recognized the importance of providing practical solutions to empower local businesses. We must follow suit by promoting fair procurement processes, engaging with local communities, and prioritizing environmental sustainability, ensuring that our infrastructure projects are built with the future in mind.”
To bridge the financial gap between local contractors and their foreign counterparts, Senator Mpigi urged the Securities and Exchange Commission (SEC) to explore innovative approaches, such as asset tokenization.
“This process allows local contractors to convert their assets into digital tokens, facilitating access to funds from a broader pool of investors. By unlocking these new financing opportunities, tokenization can empower local contractors to raise capital, enable fractional ownership, and improve liquidity in the sector.
“The Federal Inland Revenue Service can play a crucial role in supporting our local contractors by introducing easier access to tax credits, which will ease their financial burden. Such incentives can encourage investment in the sector, providing them with much-needed relief and fostering growth,” he added.
In his keynote address, Chairman of the House Committee on Works, Hon. Akin Alabi, stressed the importance of partnerships that prioritize local contractors.
“Today, we gather with a shared purpose to strengthen the bridges between the government, stakeholders, and our local contractors and construction companies, fostering partnerships that will empower our indigenous industries and transform our country’s infrastructure.
“Nigeria has a diverse landscape that holds immense potential for growth and development. However, to truly unlock these potentials, we need an approach that maximizes local resources, skills, and talents. It is time to embrace our local contractors not only as stakeholders but as partners in our journey to national development.
“We need a construction industry that is driven by local content, benefiting our people and fortifying our economy. Today’s summit provides an opportunity to address challenges, explore solutions, and deepen collaborations between indigenous contractors, construction companies, and key policymakers.”
