Rivers State Governor Nyesom Wike has stated that Nigeria’s Procurement Act 2007 is to blame for many unfinished projects in the country, and he wants the incoming administration to alter the law.
The procurement Act was last updated in June 2007, however a study of the Act began in 2017 under former Finance Minister Kemi Adeosun.
The review has been halted despite passing third reading in the House of Representatives.
Section 35(1) of the Procurement Act of 2007 states that “a mobilization fee of not more than 15% may be paid to a supplier in addition to any other regulations as may be prescribed by the Bureau.”
“Once a mobilisation fee has been paid to any supplier or contractor, no further payment shall be made to the supplier or contractor without an interim performance certificate issued in accordance with the contract agreement.”
At the opening of the Rumuokwuta/Rumuola flyover bridge in Port Harcourt, Rivers State, Wike stated on Wednesday that the Act’s 15% mobilization fee is impeding many projects across the nation.
However, the document under consideration suggests increasing the mobilization fee on contracts from 15% to “not more than 50%.”
Wike claims that he had an impact on the revision of the Rivers State procurement legislation, which now permits mobilisation fees up to 70%.