The House of Representatives has advanced a critical piece of legislation aimed at supporting local manufacturers and indigenous companies.
The bill, which has now passed its second reading, seeks to make it mandatory for Ministries, Departments, and Agencies (MDAs) to prioritize local goods and services in the procurement process.
Sponsored by Rep. Jesse Okey-Joe Onuakalusi, representing Oshodi/Isolo Federal Constituency II, Lagos State, the proposed legislation was consolidated with similar bills put forward by Hon. Obi Aguocha and Hon. Nnamdi Ezechi, reflecting a broad consensus on the need to strengthen local industry.
Titled the “Local Industry Patronage Bill, 2024,” the legislation is designed to ensure that local manufacturers and indigenous companies are not sidelined during procurement. It explicitly aims to prohibit the exclusion of locally produced goods in government contracts and procurement processes, ensuring that homegrown businesses are given a fair chance to compete.
“The bill is crucial for the growth of our local industries,” Rep. Onuakalusi stated during the debate. He emphasized the importance of fostering economic growth by promoting indigenous goods, adding, “By mandating the prioritization of local manufacturers, we are supporting job creation, innovation, and economic development within Nigeria.”
The bill, if passed, would require all government agencies to give preference to locally produced goods and services over foreign alternatives, thereby fostering the development of local industries and reducing the country’s dependence on imports.
Rep. Aguocha, a co-sponsor of the bill, highlighted its potential to catalyze Nigeria’s industrial growth. “This bill is not just about buying local goods; it’s about empowering Nigerian businesses and ensuring sustainable economic growth,” he said. He further noted that the law would help build capacity among local producers and manufacturers, allowing them to meet the demand for quality goods and services.
Hon. Nnamdi Ezechi also lent his voice to the bill’s significance, stressing that it represents a decisive step toward self-reliance. “Our local industries are the backbone of our economy, and it is only fitting that they should be given priority in public procurement,” he said. He further urged his colleagues to support the bill, noting that the economic benefits far outweigh any perceived challenges.
The bill aims to create a more level playing field for local producers, encouraging competition and ensuring that government procurement practices align with the broader goal of economic sustainability. Once passed into law, it is expected to drive significant investment into local manufacturing, promote innovation, and reduce the unemployment rate by creating more job opportunities across the country.
