Federal government has barred foreign firms from bidding for contracts worth N5 billion in order to empower local contractors. Thi is in line with proposed Local Content Bills being considered by the Senate.
Abubakar Aliyu, minister of State for Works and Housing, told the National Assembly Joint Committees on Local Content in Abuja that the N5 billion categorisation was part of measures being put in place to strengthen local content laws.
According to him, contracts that are not more than N5 billion are to be exclusively for indigenous firms for bidding, award and execution.
But when asked by Senator Teslim Folarin, chairman of the Committee, whether the new policy would affect construction firms like Julius Berger, the Minister said proper categorisation would be done to determine that.
According to him, Julius Berger is more or less an indigenous foreign firm going by high involvement of Nigerians in its operations and management over the years, which makes its categorisation a bit difficult.
He added that other measures like registration of expatriates and proof of valid residence permit are also part of recommendations in the local content development bill.
