Way back on a bright sunny day on 12th February 2018, President Muhammadu Buhari signed Executive Order 5 into law. The order is to improve local content in public procurement with science, engineering and technology components.
Commonly referred to as EO 5, the order portends significant positive impact on local businesses in terms of increased patronage by MDAs in challenge of the preferential treatment for foreign expertise to the detriment of home-based professionals.
It is not in doubt that coming at a time of reduced oil revenues and budget deficits, Nigeria needs to manage its foreign reserve with a high sense of stewardship that would bolster Nigeria’s import substitution drive on the way to attaining positive balance of trade.
In the proclamation titled ”Presidential Executive Order 5 for planning and execution of projects, promotion of Nigerian content in contracts in science, engineering and technology, the President directed all Ministries, Departments and Agencies, MDAs to engage indigenous professionals in the planning, design and execution of national security projects”.
However, in carrying out these duties and give it life, the order provides that the Ministry of Interior shall ensure that all Expatriate Quota for projects, contracts and programmes are granted in line with the provisions of the Immigration Act and other relevant laws of the country.The Executive Order also prohibits the Ministry of Interior from issuing visas to foreign workers whose skills are readily available in Nigeria.
The Federal Inland Revenue Service, FIRS and the Ministry of Finance shall ensure that tax incentives are granted to companies with existing tools including foundry, machine shop and indigenous artisans to boost local production of their products.
Also, tax incentives may be granted to Small and Medium Enterprises and foreign firms for the utilisation of local raw materials that are authenticated by the Raw Materials Research and Development Council, RMRDC while companies or firms duly registered in Nigeria with a valid practicing licence shall lead in any consultancy services involving Joint Venture, JV relationships and agreements relating to Law, Engineering, ICT, Architecture, Procurement and Quantity Surveying among others.
The order also provides that MDAs shall ensure that all professionals practicing in Nigeria are duly registered with the appropriate regulatory bodies in the country and ensure collaboration with the Head of the Civil Service of the Federation and that all foreign professional certificates are valid and registered with the relevant professional bodies before being considered for any contract award or employment in Nigeria.
Similarly, NOTAP shall develop, maintain and regularly update an experts’ database including expertise in science, engineering, technology and other fields.
In line with the authority vested in the President by the Constitution, he ordered that all ”procuring authorities shall give preference to Nigerian companies and firms in the award of contracts in line with the Public Procurement Act 2007.
In his inaugural address of the Presidential Monitoring and Evaluation Council of the EO 5 in Abuja recently, President Buhari disclosed that the Federal Government shall introduce margin of preference in national competitive bidding in contracts, in the evaluation of tenders from indigenous suppliers of goods manufactured locally over foreign goods.
According to President Buhari, EO 5 was aimed at placing Nigerian professionals and manufacturers at the centre of the Nigerian economy.
EO 5 will be used by government to midwife a new beginning to transform Nigeria and its economy from resource based to knowledge based and innovation driven economy.
The Implementation of this Order is therefore a welcome development and is bound to come with a number of positive implications on the country’s economy.
It is also expected that all MDAs shall ensure that all consultancy contracts awarded to foreign companies be made available to their corresponding Nigerian partners, include arrangements with SMEs as partners towards local production of needed materials.
Some of the implications include the promotion of the application of local content in science, technology and innovation within Nigeria; encourage indigenous experts in diaspora to return to their home for public procurement purposes which is likely to improve standards and healthy competition in all sectors; preference to be given to Nigerian companies and firms by procuring authorities in the award of contracts; immigration agencies may create a special immigration class for experts in African countries to work and reside in Nigeria so as to share their knowledge with Nigerian experts. This will aid the capacity of the companies and foster inter-Africa relations and increased production of local materials for building and construction.
Others include ministries, Departments and Agencies, MDAs to engage indigenous professionals in the planning, design and execution of national security projects.
Undoubtedly, the policy can be described as a right step in the right direction and is capable of laying a solid, proper foundation for an industrial, diversified and self-sustaining economy. It is also a step towards a sustainable path and to a future in which wholesale importation and consumption of foreign technology is reduced.
However with the passing into law of this Order and the already existing provisions in the Companies and allied matters Act 1999, Nigerian Oil and Gas Industry Content Development Act of 2010 regulating the expatriate quota process, a key to its effectiveness and sustenance will be the need to properly monitor and execute the letter and spirit behind the Order.
The truth of the matter is that professionals in the country have never had it so good than now under the PMB dministration.
Nigerians strongly believe that one good turn deserves another. It is not rocket science for Nigerian professionals to see the need to reciprocate government’s gesture and recognition of their involvement in the planning and execution of its development programmes and projects.
They must prove to the world that the confidence in which the country holds them will not be in vain. They must show high sense of professionalism, competence and patriotism to the Nigerian nation in this call to duty.
MUSA ILALLAH WROTE FROM EMEKA ANYAOKU STREET ABUJA.
