Women entrepreneurs attempting to negotiate the complicated business landscape may face substantial obstacles due to procurement restrictions and compliance requirements. 

Understanding and following these regulations is critical to maintaining fair and transparent procurement processes while minimizing legal risks. 

In this complete review, we’ll look at the important procurement legislation and compliance requirements that apply to women entrepreneurs, as well as provide advice on how to stay compliant, access procurement agency resources, and avoid typical legal pitfalls.

 

Important Procurement Legislation in Nigeria

Several key pieces of legislation govern public procurement in Nigeria. Understanding these is crucial for ensuring compliance:

Public Procurement Act, 2007: This Act establishes the Bureau of Public Procurement (BPP) as the central regulatory body and outlines core principles for transparent and accountable procurement practices.

National Gender Policy, 2006: This policy mandates a minimum quota of 35% for contracts awarded to WOBs in public procurement.

Guidelines on Local Content in Public Procurement: These guidelines promote the use of domestic goods, services, and works in public procurement to stimulate the local economy.

Infrastructure Concession Regulatory Commission (ICRC) Act, 2005: This Act governs the concession of public infrastructure projects, offering opportunities for WOBs in Public-Private Partnerships (PPPs).

 

Compliance Requirements for women-owned businesses 

WOBs must adhere to the general public procurement regulations outlined in the Public Procurement Act, 2007. Here are some specific requirements to keep in mind:

Company Registration: Your business must be registered with the Corporate Affairs Commission (CAC).

Tax Compliance: Obtain a valid Tax Clearance Certificate (TCC) from the Federal Inland Revenue Service (FIRS).

Pensions Compliance: Secure a Pensions Clearance Certificate (PCC) from the National Pension Commission (PenCom) demonstrating employee pension contributions.

Industrial Training Fund (ITF) Compliance: Acquire a certificate from the ITF confirming adherence to their levy contributions for skills development.

BPP Registration: Register with the BPP as a pre-qualified vendor, meeting specific criteria related to your company profile, financial statements, and technical capabilities.

Gender Certification: Obtain a certificate from the Federal Ministry of Women Affairs verifying your status as a WOB to qualify for the 35% quota.

 

Staying Compliant: Practical Tips for WOBs

1] Maintain Updated Records: Ensure your company registrations, tax clearances, and BPP registration are up-to-date.

2] Seek Professional Guidance: Consider consulting with legal or procurement specialists familiar with Nigerian public procurement regulations.

3] Attend Training Programs: Participate in workshops offered by the BPP, Federal Ministry of Women Affairs, or other relevant organizations to stay informed about compliance updates.

4] Develop a Compliance Culture: Integrate ethical procurement practices within your company culture to minimize the risk of non-compliance.

 

Resources for WOBs in Public Procurement

The Nigerian government recognizes the importance of supporting WOB participation and offers various resources to assist with compliance:

  • Federal Ministry of Women Affairs: Provides workshops, seminars, and guidance specifically tailored to WOBs in public procurement.
  • National Enterprise Development Council (NEDC): Offers training programs on public procurement procedures and access to financing schemes for WOBs.
  • Bureau of Public Procurement (BPP): Provides resources on their website, including standard bidding documents, guidelines, and frequently asked questions.
  • Women Business Associations: Joining professional networks can offer valuable peer-to-peer learning and support from experienced WOBs.

 

Avoiding Legal Pitfalls

In navigating procurement regulations and compliance requirements, women entrepreneurs must be vigilant to avoid common legal pitfalls that may arise. Here are some tips to minimize legal risks:

 

1] Consult Legal Counsel: Seek guidance from legal counsel with expertise in procurement law to ensure compliance with regulations and mitigate legal risks associated with contracting.

2] Stay Informed: Stay abreast of changes to procurement regulations and compliance requirements by regularly monitoring updates from procurement agencies, industry associations, and legal publications.

3] Maintain Detailed Records: Keep thorough records of procurement activities, contract documents, correspondence, and compliance efforts to demonstrate adherence to regulations and defend against potential legal challenges.

 

Conclusion

Procurement regulations and compliance requirements pose significant challenges for women entrepreneurs, but with careful attention to detail, proactive compliance efforts, and access to resources and assistance, women entrepreneurs can navigate the procurement landscape successfully. By understanding key regulations, accessing relevant resources, and avoiding legal pitfalls, women entrepreneurs can position themselves for procurement success and contribute to a more inclusive and diverse business environment.