Federal Government of Nigeria – Executive Order 005
Federal Government of Nigeria issues Executive Order for the Promotion of Nigerian content in Contracts and Science, Engineering and Technology
On 2 February 2018 President Muhammadu Buhari, GCFR issued Presidential Executive Order 005 “For Planning and Execution of Projects, Promotion of Nigerian Content in Contracts and Science, Engineering and Technology” (“Executive Order 005”).
Executive Order 005 is premised amongst others on the recognition by the Federal Government of Nigeria (“FGN” or “Government”) that science, technology and innovation are vital in national economic development, and the Government’s desire to increase the quantum of value created in the Nigerian economy through increased Nigerian content in goods and services procured in the public sector. To be read in conjunction with extant laws governing public procurement and professional practice in Nigeria, Executive Order 005 creates an interwork of various relevant ministries, departments and agencies (“MDAs”).
It would appear that the essence of the Executive Order 005 is to create a regime in the public sector for preferential procurement of goods and services for (a) Nigerian companies and firms, (b) local technology, (c) goods manufactured in Nigeria, (d) goods manufactured in Nigeria with local materials (processed and unprocessed), and (e) Nigerian personnel, consistent with the provisions of the Public Procurement Act and other relevant legislation. Amongst other measures contained in Executive Order 005, MDAs are required to expressly indicate the preference to be granted to domestic manufacturers, contractors, suppliers and service providers “in order to establish eligibility of a bid for such preference”. Executive Order 005 also contemplates the provision of tax incentives to boost the output of existing machine tools companies and companies that utilise local raw materials. Although Executive Order 005 makes provision for punishment of violations by reference to sanctions that exist in the Public Service Rules and laws governing public procurement and professional practice in Nigeria, it remains to be seen how these sanctions would be invoked where the relevant rule or law does not create any mandatory preferential regime as Executive Order 005 has done.
To access the full txt of Executive Order 005, click here