BPP Boss, Omotola, assures Manufacturers of protection, support via amendment of the current PPA

 

The Acting Director General of the Bureau for Public Procurement, (BPP) Mr. Olusegun Omotola has assured the Manufacturers Association of Nigeria, (MAN) that the bureau is already taking measures to protect and support the manufacturing sector through its proposal for the amendment of the current Public Procurement Act (PPA).

The Ag. Director General of the Bureau for Public Procurement, (BPP) Mr. Olusegun Omotola, who was the Special Guest of Honour, at the 3-day Made-In Nigeria Exhibition of The Manufacturers Association of Nigeria held between 22nd and 24th of October 2024 at the Lagos Oriental Hotel, Lekki-Epe Expressway, Victoria Island, Lagos disclosed this in his opening speech on “The Imperative of an Intentional Development of the Nigerian Manufacturing Sector in an Era of Economic Downturn.” and how public procurement policies can be used to improve the manufacturing sector in our great nation.

 Omotola pointed out that the nation faces unprecedented economic challenges in which the manufacturing sector is not insulated from, noting that the challenges facing the manufacturers are multifaceted.

However, he said, that in the face of these challenges, manufacturing sector still serve as a key driver of job creation, technological advancement, and economic diversification, adding that a robust manufacturing sector is essential for reducing our dependence on imports, conserving foreign exchange, and positioning Nigeria as a competitive player in the global market.

He highlighted that the time for half-measures and piecemeal solutions has passed, stressing that there is a need for a comprehensive, intentional approach to developing our manufacturing sector, which must be rooted in sound policies, strategic investments and unwavering commitment from both the public and private sectors.

The BPP boss stated further that in the bid to proffer solutions to fixing the challenges, they must double down on efforts to promote local content and patronage of Made-in-Nigeria goods, adding that the government at all levels must lead by example through effective enforcement and implementation of existing local content policies across all ministries, departments and agencies (MDAs).

“By creating a guaranteed market for locally manufactured goods, we can stimulate production, drive innovation and lead to economic boom,” he said.

He hinted that by prioritizing locally manufactured goods, we can       Stimulate economic growth; Create jobs; Encourage innovation; Reduce dependence on imports; and strengthen our industrial base.

“It is soothing to note that Nigeria has already taken significant steps in the right direction. In 2017, the Federal Government issued an Executive Orders 003 and 005 on Support for Local Content in Public Procurement. This Executive Orders mandate that all Ministries, Departments, and Agencies (MDAs) of the Federal Government must grant preference to local manufacturers of goods and service providers in their procurement processes,” he said.

 He listed the key aspects of this order to include: “A requirement that at least 40% of procurement expenditure on certain items by federal ministries must be for locally manufactured goods or services; Mandatory disclosure of local content plans in bids submitted to government institutions; while preference for foreign companies must show demonstrable plans for indigenous development, when local expertise is lacking.”

These initiatives, according to him, represent a strong foundation, but we must build upon them to fully realize the potential of public procurement in boosting local manufacturing.

 In the words of the Ag. DG BPP “I am here to present a new Bureau of Public Procurement that is willing and ready to collaborate with key stakeholders [such as the Federal Ministry of Industry, Trade and Investments, Standard Organisation of Nigeria (SON), Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) and others] in the manufacturing sector to develop intentional policies, roadmap and implementation framework that will deliver sustained inclusive economic growth, boost agriculture to achieve food security and accelerate diversification through industrialization and manufacturing in line with the President Bola Ahmed Tinubu Administration’s Renew Hope Agenda.”

Omotola disclosed that to further strengthen the public procurement policies and their impact on local manufacturing, he proposed the following reform enhancements: “Expand Preferential Treatment: While the current 40% requirement for local content is a good start, we should aim higher. I propose gradually increasing this percentage over the next five years, with the ultimate goal of reaching 60-70% for key sectors.

“Implement Stricter Enforcement Mechanisms: We must ensure that our policies are not just words on paper, but are effectively implemented. This requires: Regular audits of procurement processes; Penalties for non-compliance and Rewards for agencies that exceed local content targets.

“Enhance Capacity Building Programs: To ensure that local manufacturers can meet the increased demand, we must invest in capacity building. This includes: Providing technical training and support; Facilitating access to finance at competitive rates; Encouraging technology transfer from foreign partners, especially in the emerging areas like renewable energy and other products that are deployed in combating Climate Change.

“Promote Innovation Through Procurement: We should use public procurement as a tool to drive innovation in local manufacturing. This can be achieved by: Setting aside a portion of procurement budgets for innovative local solutions; Implementing challenge-based procurement for complex problems; Encouraging public-private partnerships in research and development.”

He explained that while these policies hold great promise, they must also address potential challenges which they have noticed over the years.

Firstly, he said, they have to address concerns about the quality of locally manufactured goods by “strengthen the role of the Standards Organization of Nigeria in certifying local products; Establish a multi-stakeholder Watch Dog as an independent monitoring platform to combat counterfeiting; Establish an effective feedback mechanism that comprise the manufacturer, regulator and the consumers; Establish efficient Customer and After-Sales Support Centres; Invest in upgrading manufacturing facilities and processes as well as Implement rigorous quality control measures.”

The other challenge to overcome, he said, is capacity constraints in local manufacturing, so there is a need to “Implement phased demand targets to allow for gradual capacity building; Encourage collaboration and consortiums of local manufacturers to meet large-scale procurement needs; and Facilitate partnerships between local and foreign firms for knowledge transfer.”

The Ag. DG BPP emphasized that the potential of public procurement to transform our manufacturing sector and drive economic growth is immense, adding “By implementing and enhancing these policies, we can create a virtuous cycle of local production, job creation, and economic development.”

He urged the manufacturers to seize this opportunity to build a stronger, more self-reliant Nigeria, where our factories hum with activity, where our workers are employed in dignified jobs, and where our products proudly bear the label “Made in Nigeria.”

He opined that the journey ahead may be challenging, but the rewards are great. Adding that support and collaboration, they can harness the power of public procurement to unlock the full potential of the Nigerian manufacturing sector.

Omotola implored all stakeholders – government officials, industry leaders, financial institutions, and every citizen – to join hands in this crucial endeavour. “Let us commit to the intentional, strategic development of our manufacturing sector. Together, we can turn this era of economic challenge into an opportunity for transformation and growth. The time to act is now. The future of our nation depends on it,” Ag. DG BPP emphasized.