Nigeria Social Insurance Trust Fund and the Bureau of Public Procurement have announced a series of strategic initiatives to foster the growth and development of Small and Medium Enterprises across Nigeria.
This partnership was made known during a courtesy visit to BPP’s new Director General, Adebowale Adedokun, by NSITF’s Managing Director, Oluwaseun Faleye according to a statement signed by the Fund’s Corporate affairs manager, Nwachukwu Godson on Wednesday.
The meeting underscored the commitment of both organisations to stimulate SMEs’ participation in open competitive bidding for contracts, thereby promoting transparency and inclusivity in public procurement processes.
Adedokun stated that the NSITF has a crucial role to play in the vision of the BPP to democratise access to public procurement opportunities for small businesses. He also emphasized the importance of adjusting procurement policies to be more accommodating to SMEs, citing successful models being operated in Kenya, Tanzania, and Rwanda that support participation from diverse business owners including women and persons with disabilities.
He said the NSITF is a pivotal organisation that can champion the adoption of open competitive bidding among stakeholders, adding that by promoting fair competition, small business owners can be empowered to participate, thereby increasing revenue and fostering trust among Nigerians in the system.
“Are there ways to do it through our processes? Are there waivers? These are the things I want to put on the table. We are going to work on this together. I’m going to come up with policies that will drive small and medium-scale businesses because it is cumbersome for them to participate in all the guidelines.
“It is happening in Kenya, Tanzania, and Rwanda where they streamline the requirements for categories of people – disabled, women, etc. to enable them to participate with little or minimal mandatory requirements. And if we want to grow this economy, we have to go that way. We cannot ask small business owners to do the same thing as big contractors and multinationals. We need to streamline the requirements.”
In response, NSITF Managing Director highlighted the proactive measures already taken by NSITF to engage with stakeholders in the informal sector and enhance their participation in the economy.
“We are committed to implementing open competitive bidding by 2025 and are adjusting our processes to ensure SMEs can compete effectively for contracts,” said Faleye. He also noted ongoing efforts to tailor compliance requirements for small businesses and extend social security nets across Nigeria.
“We recognize the importance of the informal sector in the sustainability of the Employees’ Compensation Scheme. The sector holds the key to enhanced contributions, besides giving us more opportunities to extend our social security nets across Nigeria.
“Within our processes, we are reflecting on how best to reach out and accommodate them the more. Before this meeting, we have already declared that from 2025, all of our procurement engagements with our stakeholders will be through open competitive bidding so as to broaden the space to accommodate small businesses.”
Faleye further stated that the fund was currently developing a tiered contracting system, which will categorize contracts by size and reserve specific opportunities for small businesses, in order to ensure their active participation. “This inclusive approach will provide opportunities for businesses of all sizes, including large, medium, and small enterprises, as well as specialised groups such as women-owned businesses.”
The two organizations also agreed on a joint media campaign to educate Nigerians on the benefits of the Employees’ Compensation Scheme and the transparency procurement initiative of the BPP while also pledging to support each other in areas such as Information and Communication Technology security and manpower training.
This partnership marks a significant step towards creating a more inclusive and transparent procurement environment in Nigeria, enabling SMEs to contribute more significantly to national economic growth.
