Senate passes law on Made-in-Nigeria goods, pegs contracts mobilisation fee at 25%

The report by Senator Joshua Dariye’s Committee reads: “The first part of amendment by the bills under this section is to review upward the mobilization fee from 15 per cent to 25 per cent that may be paid to a supplier to contractor
The Senate on Thursday finally gave legal teeth to made in Nigeria goods through passage into law the Public Procurement Act 20‎07 (amendment) bill 2016, which seeks to promote local content.
Also, the passage of the bill into law has jerked up mobilization fee from 15 per cent to 25 per cent.
The Senate also retained section that striped the Federal Executive Council from awarding contract in the country.
According to the report,‎ the Committee has sustained the amendments sought by the bill for the purpose of patronizing made in Nigeria goods alongside foreign goods.
This will go a long way to encourage Nigerian manufactures and by extension provide Job opportunities for teaming unemployed youths.
The report by Senator Joshua Dariye’s Committee reads: “The first part of amendment by the bills under this section is to review upward the mobilization fee from 15 per cent to 25 per cent that may be paid to a supplier to contractor.
:Mobilization fees, where necessary and payable, shall not exceed 25 per cent of the total contract sum.”
In his remarks immediately after the consideration of a report on the bill, the President of the Senate, Dr. Abubakar Bukola Saraki, emphasised that priority must be given to local goods.
Saraki said: “In stimulating our economy, we all have a role to play to ensure that the executive complies, especially in the area of giving first priority to locally-produced goods.
“This has helped many countries to develop when they had issues of downturn in their economy.
“I believe that we are having over N3 trillion available to stimulate local production going on now.
“One of the things that we have done today is also trying to shorten the process of awarding contracts; this will go a long way in helping budget implementation.
“It would go a long way in ensuring that most of the funds are available as quickly as possible and jobs are actually completed.
“I want to commend my colleagues for passing this bill‎.”