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Public procurement: Lagos assembly set to increase mobilisation fee to 40%


Lagos State House of Assembly

The Lagos State House of Assembly on Wednesday said it would increase the mobilisation fee of contractors to 40 per cent in the ongoing amendment of the state’s Public Procurement Agency Bill, 2020.

The Chairman, House Committee on Public Procurement, Mr Rauf Age-Sulaimon made the disclosure during a one day public hearing in Lagos.

Age-Sulaimon noted that the purpose of the amendment was to increase advance payment from 20 per cent to 40 per cent so the contractor involved would be able to do the job effectively.


He said: “As you are talking about development, procurement is the most important aspect because if government projects are not properly executed, of course you will not see the result.

“We have been talking about the money needed for projects and the economy is not smiling at all and for us to support contractors, there is need on the part of the government to encourage them.

“The essence of this amendment is to increase advance payment from 20 per cent to 40 per cent so that the person involved will be able to do the job effectively.

“We will ensure that contractors adhere strictly to the terms of the contract. It will benefit the masses because it will not be winner-takes- all. It will not be the survival of the fittest because, the fittest may not be capable.

“Bidding for contract is open to everybody. Once you have the requirement, you will be allowed to bid and apart from that the timing, it’s open to everybody.

“That is why we brought it before everybody,” he said.


Age-Sulaimon noted that there could not be any meaningful development without infrastructure development, adding that due to policy summersaults, there was need for them to be up to date.

In his keynote address, Speaker of the House, Mudashiru Obasa who was represented by his Deputy, Wasiu Sanni-Eshinlokun,, said the idea of public hearing afforded policymakers opportunity to hear from the masses.

Obasa said they were here to discuss important issues, which was public procurement, which was broad and all encompassing and covered all aspects of government activities.


He said the state was proud to be one of the states with one of the best procurement policies in the country.

Meanwhile, a Town Planner, Dahunsi Osho, Vice Chairman of Oshodi/Isolo Local Government Area, in his contribution, asked when a contractor could be said to have absconded.

According to him, one may collect money and will not be available for the next one year, adding that a time frame should be attached to absconding.

Mr Akeem Kareem, representing legal officers in the local government areas, observed that there was a lacuna and the composition of the Tenders Committee of the local government areas was not stated.

Kareem said this lacuna should be addressed to avoid any form of rancor.


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