From Adanna Nnamani, Abuja
The Nigeria Social Insurance Trust Fund (NSITF) and the Bureau of Public Procurement (BPP) have announced strategic initiatives to support the growth of Small and Medium Enterprises (SMEs) across Nigeria.
In a statement issued by NSITF, the partnership was revealed during a courtesy visit to the BPP’s new Director General, Adebowale Adedokun, by NSITF’s Managing Director, Oluwaseun Faleye, in Abuja on Tuesday.
“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,” the statement said.
Adedokun emphasised NSITF’s pivotal role in BPP’s vision to democratise access to public procurement opportunities for small businesses. He highlighted the importance of adjusting procurement policies to accommodate SMEs, referencing successful models in Kenya, Tanzania, and Rwanda that streamline requirements for women, persons with disabilities, and other diverse business owners.
“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 with 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 minimal mandatory requirements. If we want to grow this economy, we have to go that way. We cannot ask small business owners to do the same as big contractors and multinationals. We need to streamline the requirements,” he said.
In response, NSITF Managing Director Oluwaseun Faleye outlined measures already taken to engage informal sector stakeholders 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 recognise the importance of the informal sector in the sustainability of the Employees’ Compensation Scheme. The sector holds the key for 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 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 to broaden the space to accommodate small businesses.”
Faleye added that the NSITF is developing a tiered contracting system that categorises contracts by size and reserves specific opportunities for small businesses. “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 organisations also agreed on joint media campaigns to educate Nigerians on the benefits of the Employees’ Compensation Scheme and the BPP’s transparent procurement initiative. They pledged mutual support in areas such as Information and Communication Technology (ICT) security and manpower training.