President Muhammadu Buhari, on Monday 5 February 2018, signed the 'Executive Order 5 for Planning and Execution of Projects, Promotion of Nigerian Content in Contracts and Science, Engineering and Technology' (the Order).
The Order demonstrates Federal Government's efforts towards promoting development of local content science and technology in Nigeria. It also gives effect to the policy framework requiring foreign professionals working in Nigeria to obtain appropriate local certification as earlier approved by the Federal Executive Council (FEC). Please see link to our alert on FEC's policy here.
The Executive Order has 18 major segments covering issues ranging from preference for local materials, companies and employees to accreditation of professionals by appropriate authorities and domestication of foreign professional certificate as a precondition for contract award. Other issues covered under the Order include encouragement of indigenous human capital capacity development and establishment of a database of Nigerian experts.
The Order goes further to set up the Presidential Monitoring and Evaluation Council (Council) headed by the President and comprising the Vice President, Ministers and Chairman of the Governor's Forum amongst others. Monitoring implementation of the Order will be the Council's primary role.
With this Order, it is expected that there will be increase in employment of Nigerians and preference for Nigerian companies/firms in award of federal government contracts. Also, the Order should stimulate participation, quest for expertise and development of indigenous professionals/companies who currently do not have the requisite technical know-how to execute relevant contracts.
We will provide a detailed analysis of the Order and its implication in a subsequent newsletter to be issued shortly.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.