Contracts: FG Grants Local Manufacturers Preference over Importers.

Thisday  (Minister of Trade and Investment, Olusegun Aganga)

President Goodluck Jonathan has announced that, henceforth, 'Made in Nigeria' products will enjoy preference over imported ones in the award of government supply contracts.

Jonathan explained that, going forward, even when a locally manufactured product is costlier than the same kind of product which is imported, the 'Made in Nigeria' products will still be considered ahead of the foreign one in the award of supply contracts.

He made the disclosure while calling on all Nigerians to join in the campaign for the patronage of local goods at the 26th Lagos International Trade Fair, which he declared open.

The ten-day Fair was opened by Jonathan, who was represented by the Minister for Trade and Investment, Mr. Olusegun Aganga.

According to him “most people are not aware of what is called ‘margin of preference for Made in Nigeria products’. It is something which the President has done and asked us to look at.

"What it means is that if company A makes the same product in Nigeria and B buys the same product from somewhere and brings it to Nigeria if they quote for the same thing for government expenditure and the price of the company producing the goods in Nigeria is within 15 per cent of the price of the person importing, they get the contract,” he said.

He stated that for now the margin of preference for 'Made in Nigeria' products rule is being considered sector by sector to determine what percentage is appropriate for the different sectors.

“That way we will project and protect our local industries, it is important that we protect and patronise them. I want to encourage through this medium that Nigerians patronise 'Made in Nigeria' products.

"When you patronise 'Made in Nigeria' products you are creating jobs for your fellow brothers and sisters and contributing to the economy. That is going to be the theme of the next campaign for made in Nigeria products,” he said.

He disclosed that the government was working at an advanced stage to promote Made in Nigeria products, adding that the government was ready to harmonise its position with a private member bill in the National Assembly as soon as the policy goes to council and receives approval.
In his welcome address, the President of Lagos Chamber of Commerce and Industry (LCCI), organisers of the Fair, Mr. Goodie Ibru, said the theme of the fair, 'Promoting Trade for Sustainable Economic Transformation' was chosen to underscore the significance of trade in the realisation of our collective aspiration of rapid economic transformation.

However, he said, for Nigeria  to benefit from trade, domestic firms must be competitive, stressing that the creation of an enabling environment to enhance competitiveness was crucial.

Ibru said the key drivers of any economy were the entrepreneurs; "who are the risk takers, the wealth creators and innovators adept in resource mobilisation and utilisation.

“They provide the platform to boost incomes and reduce poverty through the creation of jobs. An economy can only progress at a pace comparative to the prosperity of its private sector and vice versa,” he said.