Federal Contractor Registration: Five Certificate required to bid for Federal Tenders & Contracts in Nigeria
The Federal government of Nigeria is no doubt the biggest spender in the country’s economy, the FG takes a whopping 52.68 percent of the total revenue accrued to the Federation Account. For the 2022 fiscal year, the Federal government proposed to spend N17.126 trillion; the breakdown indicate that the sum of N3.8trillion is for debt service, N6.9trillion recurrent non-debt expenditure while N5.4trillion is for capital expenditure.
Aside from salaries/wages, the bulk of the expenditure goes to procurement/capital projects for the MDA’s. The procurement process will be open to the public, only registered companies/businesses that meet the criteria can however participate. Is your company eligible to bid for Federal tenders? Read the requirement to become a Federal contractor;
1. CAC Business Registration Certificate
It is mandatory for every business to register their company with the Corporate Affairs Commission (CAC). The agency is responsible for the registration of an organization that is willing to legally conduct businesses anywhere in Nigeria.
2. NSITF Compliance Certificate
The National Social Insurance Trust Fund – NSITF Compliance certificate is one of the major documents required by any contractors or supplier dealing with the Federal government of Nigeria.
The National Social Insurance Trust Fund (NSITF) is a Social Insurance Scheme designed to provide compensation to employees who suffer from occupational diseases. It also ensures compensation to the employee next-of-kin in case of death in the course of work. To obtain the NSITF certificate, there will be a physical assessment of your employees’ wages by NSITF in order to ascertain the amount you will for per month multiply by 12 months. Click NSITF Certificate for the guide.
3. ITF Certificate
The Industrial Training Fund ITF Compliance Certificate is a major document required if you are applying for tenders, contracts in any Federal government MDA’s. Every employer having either 5 or more employees in its establishment or having less than 5 employees but with a Turnover of N50m and above per year, shall, in respect of each calendar year and or the prescribed date, contribute to the Fund one percent of its total annual payroll. Read the guide on obtaining ITF Certificate.
4. PENCOM Compliance Certificate
National Pension Commission (PenCom) compliance certificate is compulsory for employers of labour who wish to bid or solicit for any Federal government contract or business from any Federal Government Ministries Departments and Agencies (MDA). All organizations must provide proof of compliance with the provisions of the Pension Reform Act, 2014 (PRA 2014) by obtaining the compliance certificate. Read the guide on obtaining PENCOM Compliance Certificate.
5. BPP Federal Contractor Certificate
The Bureau of Public Procurement (BPP) is the agency responsible for registering companies as Contractors, suppliers, consultants, or service providers with the Federal government of Nigeria. Their responsibility is to process any procurement involving the Federal government agencies only and does not extend to the state government. It is mandatory you obtain CAC, ITF, NSITF, and PENCOM (which can be waved) before proceeding with BPP registration. Your company Tax Clearance certificate will be required. Read step by step guide on BPP Registration as Federal Contractor