Contractors Mobilisation Fee May Rise To 20%

A Senate committee headed by Shuaibu Isah Lau is recommending a review of the Public Procurement Act 2007.

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Public sector contractors may be getting up to 20 per cent more as mobilisation fee, if a bill currently before the National Assembly becomes law.

A Senate committee headed by Shuaibu Isah Lau made this recommendation, among other things, in a report to the Senate to review the Public Procurement Act 2007.

Under the Act mobilisation fee is 15 per cent. The committee on Public Procurement submitted its report after the second reading and public hearing between November 26 and 27.

The report said it was recommending a review of the mobilisation fee, “to encourage local contractors, stimulate the economy and also create employment.”

The committee also recommended the introduction of a “National Council on Procurement,” the introduction of “an e-procurement model.”

Perhaps another radical amendment, is the proposal that the Public Procurement Act should cover institutions like the National Defence, National Security Agencies, the National Assembly and other agencies not provided for in the principal act.

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