Every week, the Nigeria Federal Executive council meets to consider issues affecting governance among which is the approval of contracts or supply deals from the various Ministries, departments and agencies (MDA’s). Annually Federal Government spends Trillion of naira on capital and recurrent expenditure to keep the wheel of governance going.
ARE A CONTRACTOR OR AN ASPIRING ONE, READ ABOUT BECOMING A FEDERAL GOVERNMENT CONTRACTOR.
Often times, people wonder how some of these contracts/bids/supplies are awarded, many even conclude that all is a ‘Man know man’ deals as we have it in this clime, this is totally not true despite the pervasive corruption involved in government dealings.
It is, however, instructive to know that many of the tenders for contracts or supply deals are actually advertised to the public and bidding process carried out openly and not all of these contracts are awarded on the basis of ‘connections’ as perceived.
To participate as a bidder in contracts involving any Federal government MDA’s, the major criterion required is for the participating business to ensure they meet the criteria of being registered in the National Database for contractor, consultants and service providers or any other as requested by the Ministry or agency involved.
This article, however, highlights the processes and requirement you need to include your registered business in the Federal government National Database for contractors and suppliers.
The Federal Government is the biggest spender in the economy, trillions of naira are usually allocated for spending to keep the wheel of governance running. In ensuring accountability and transparency in the dealings, the President mandated in pursuant to the Public Procurement Act (PPA) 2007, that the Bureau of Public Procurement (BPP) implement the National Database of the particulars, classification and categorization of Federal Contractors and Service providers in line with the act.
The Bureau of Public Procurement (BPP) thus directed that all bidders participating in all procurements should register on the National Database of the particulars, classification and categorization of Federal Contractors and Service providers.
All Contractors, Consultants and Service providers doing or intending to do business with any Federal government Ministries, departments and agencies (MDA’s) are requested to register on the BPP National database.
Registering as a Federal government contractor is free from the state government, which also varies from state to state.
REQUIREMENTS FOR REGISTRATION AS FEDERAL GOVERNMENT CONTRACTORS
To register your company as a contractor with the Bureau of Public Procurement (BPP), you will need to provide the following during the registration process which is online, they include
1. Company (CAC) Registration Number
2. Company Type
3. FIRS (TIN)
4. Company Address Details and Company’s Contact Information.
NOTE: Companies with less than three (3) personnel are not required to pay pension contributions on behalf of their employees, and as such do not require a National Pension Commission (Pencom) compliance certificate.
Companies with less than five (5) personnel, or less than Fifty (50) million naira annual turnover, are not required to pay Industrial Training Fund (ITF) contributions, and as such do not require an ITF compliance certificate.