How to Become a Contractor In Nigeria

Contracting with the federal government and large corporations, such as multinationals, is what it means to be a Contractor. If you follow the proper procedure, you can accomplish this goal. Security and good governance are the responsibility of the federal government, which distributes government initiatives across the country. That’s why governments all across the world use private sector companies to help with everything from project planning and execution to service delivery and consulting. In Nigeria, securing a contract may make you a millionaire in a matter of days. This article presents a guide to becoming a contractor in Nigeria. 

Specialized training and education

To start a career as a contractor, you’ll need to earn a degree from an accredited college or university. There is no limit to the number of recognized institutions from which you can obtain this degree. If you want to work in a field like project management, procurement, or consultancy, you’ll need more than just a college degree. Before working as a contractor in Nigeria, you should get the following credentials:

• The NSISTF Compliance Certificate
• Certification from the Bureau of Public Procurement BPP
• National Pension Commission (PenCom) 
• The Industrial Training Fund ITF Compliance Certificate

When competing for a contract, a contractor with specialized training or certification will have an advantage over other contractors without specialized training. .

Incorporate your company

Once you’ve completed the registration of your company, the following stage is to apply for government contracts. Under the constitution, only businesses that have been registered can compete for contracts. Once you’ve registered, you have the option of being either the primary or secondary contractor.

Find Your Specialty

A variety of contracts exist, including those with the federal government and large corporations. Among them:

Most of the work is being performed by large Nigerian and international consortia.

Subcontractors

Some of the main contracts secured by the major contractors are handled by these local, independent companies. There are occasions when subcontractors receive sub-contracts from large contractors who work directly for the government. Subcontractors Several of these projects include providing major contractors with equipment.

The following are possible roles for a contractor:

In civil and building engineering, big buildings such as bridges, stadiums and oil refineries are all part of the scope of this discipline

Consultants in a variety of technical fields, such as structural integrity, human aspects, quality of materials, inspections, and laboratory analysis are some of the services offered by these companies.

This relates to how the project’s finances are handled.

So that you can secure more contracts and work more efficiently as a contractor, you need to know what niche your speciality fits within. Project management, procurement, and consultancy are all areas where specialized training can be beneficial.

Get to work on your portfolio today!

Before you document your experience as a contractor, you do not need to have handled a large contract. There is no need to start from scratch. Your portfolio will continue to grow as you get more experience and make new contacts. Your portfolio is essential since it determines whether or not you get a contract or not.

Apply for accreditation from the Bureau for Public Procurement

According to Nigeria’s Bureau of Public Procurement, government contractors are required to submit standard contract bidding criteria. Registration with the Bureau of Public Procurement, which maintains a national database and allows the government to simplify all contractor activities, is a requirement for all federal contractors. As a result, contractors listed in the Bureau of Public Procurement database are the first to review every federal government contract. Enrollment in the Bureau of Public Procurement is significant since it attests to the competence of a contractor.

When enrolling on the website of the Bureau of Public Procurement, the following documents are required:

• Business Categorization Information.
• A company’s key personnel information.
• Classification of business information. 
• Company tax compliance information: This reveals the level of compliance with tax payment.
• The company registration details.
• Businesses classified under “goods,” are required to include manufacturer representative information is required
• An ITF (Industrial Training Fund) certification must show a detailed history of contributions to the fund. 
• Companies categorized under ‘the services sector; are required to submit a professional body of regulatory information.
• Information on employee pension compliance.

The different types of contractors are:

Afterwards, the Bureau of Public Procurement evaluates the company’s financial capacity to complete the verification process. As a result of these considerations, a variety of factors are taken into account while making a decision. Contractors are issued permanent identification cards at this point. In order to complete a contract, you’ll also need:

• Recommendation from a well-known bank
• A record of the company’s annual audited financial statements
• Registering for VAT (Value Added Tax).
• Requirements based on the technical specifications

There are a number of technical standards that must be met before a company can bid on a contract. Among them:

As the primary contractor, you must show that you’ve successfully completed a minimum of four similar projects. There’s just one of these that’s still relevant after three years.

• Interim Certificate of Valuation for ongoing project
• Evidence of the company’s policy on Community Social Responsibility 
• Completion Certificate and Final Maintenance Certificates (where applicable)
• Evidence of work experience as the main contractor who has executed a minimum of four (4) projects that are similar to the proposed work. One of these must have gone beyond the last three years. 
• Evidence of staff with at least four relevant professionals, stating their roles, designation, and experience.
• Scanned copies of award letters 
• Certificates of the technical and professional staff of the company which must be endorsed by the company head
• Evidence of possession of relevant machinery and equipment.
• Methodology of implementation for the project.

Conclusion

In conclusion, these simple guidelines have been provided above to assist those who are interested in becoming a contractor in Nigeria. They have outlined the key steps and considerations that are needed to initiate into this line of business.” Being observant and ready to grab opportunities when they present themselves is crucial for every entrepreneur.

 You should go out of your way to help people whenever possible, as this will likely result in a mutually beneficial relationship. Your success depends on your willingness to work hard, display flexibility, be persistent, hone your communication skills and do everything you can to boost your reputation within your industry.

 Also, remember that attitude is everything—if you remain positive and treat people with respect and dignity, you will typically receive the same in return. Being networking savvy is another vital element of the job – especially in business; it may eventually lead to an opportunity being offered to you that could take your business or career in an entirely new direction.