In Nigeria today, it is pertinent to learn how to start a contracting business in Nigeria because various initiatives are either driven by the public or private sectors. Each of these projects needs contractors to be managed and coordinated.
Due to the size of the projects, they must be handled by professionals, a service that contractors effectively offer. Contractors manage all potential risks and pressure. Their skills and efforts are amply rewarded as a result.
How can you work as a contractor in Nigeria and receive compensation as well?
About Contracting Business in Nigeria
On the path to becoming a qualified contractor, there are obstacles and challenges, though they are also rewarding. However, why use the phrase “qualified”? You may query it.
A certification is a prerequisite for applying to be a contractor. Without accreditation, a person identifying themselves as a contractor is viewed as a quack who is incapable of managing any significant task.
For such a person, the contracts that are most likely to be offered to them are little ones that rarely pay.
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The Principal Forms of Contractors
Contractors can be divided into two categories.
Both general and specialized contractors fall under this category.
The distinction between the two is:
- General contractors: as their name implies, take on all project types. They might be better described as jacks of all trades. These contractors (general) participate in bids when there are requests for proposals for oil contracts. They will also participate in a road-building bid. They are found everywhere. They are not incompetent for the job because they are not experts in specific disciplines.
They might have a pool of experts in several sectors who can successfully handle allocated contracts.
- Specialized contractors make up the second class of contractors. These are specialized in specific industries, such as mining, agriculture, medicine, insurance, or oil exploration.
Let us concentrate on the process of becoming a contractor in Nigeria.
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Nigerian Requirements for Becoming a Contractor
The regulatory body has a standard requirement provision that is available to government contractors. It is a requirement for all government contractors to register with the Bureau of Public Procurement. It simplifies the operations of all government contractors and serves as the country’s central database for all contractors in Nigeria.
According to this approach, federal contractors are given top priority or first consideration for each contract that is published. Their ability to handle the job is attested to by their registration with the Bureau of Public Procurement.
Interested applicants are granted a temporary ID after providing their email addresses. You need this ID to access the Bureau’s website, which was sent to the provided email address. The following must be entered on the website:
- Classification of business information.
- Business Categorization Information.
- A certificate from the Industrial Training Fund (ITF) displaying a thorough history of contributions to the fund.
- Important personnel data for a corporation.
- Information on a company’s tax compliance status; this information demonstrates the degree of tax payment compliance.
- One essential requirement for eligibility for registration is the firm registration information.
- Information about a manufacturer representative is necessary for companies classified as “goods.”
- Companies that fall under the services sector classification are required to provide regulatory information to a professional body.
- Additionally, information on employee pension compliance will be provided.
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Classification of Contractors
After completing all of the Bureau of Public Procurement’s standards and passing its verification, the company goes through a classification procedure in which it is categorized based on its financial strength.
Among the factors considered are the
- Equipment’s condition
- The sorts of equipment it has, and
- Its staff.
The first temporary ID that was initially issued to the contractor’s email address at the beginning of the project is replaced with a permanent ID and password that may be used whenever the contractor wants to manage the information on their account.
Before being considered for a contract, several other businesses want more details.
Some of them consist of;
- A testimonial from a trustworthy bank endorsing the contractor
- A list of the yearly audited accounts
- A certificate of registration for Value-Added Tax (VAT).
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Conclusion
These are the absolute minimum conditions needed to work as a contractor in Nigeria.
You as an intending contractor are now well on the way to realizing your goals thanks to the information above.
However, since it can occasionally be difficult, finishing the complete process calls for effort and patience.
