Procurement Accounts For Up To 60% Of Public Finance Leakages — Stakeholders

Stakeholders in Nigeria’s public procurement sector have raised concerns over widespread leakages in public financial management, saying procurement is linked to between 50 and 60 per cent of such leakages.

The stakeholders spoke on Tuesday in Abuja during the inauguration of the Forum of State Directors-General of Public Procurement by the Nigeria Governors’ Forum (NGF).

The forum brought together Directors-General of state Bureaux of Public Procurement and their equivalents from the 36 states and the Federal Capital Territory, alongside development partners and other stakeholders.

The stakeholders said strengthening procurement systems at the subnational level was critical to plugging financial leakages, improving transparency and ensuring value for money in government spending.

Speaking at the event, Dr Osahanze Idahosa, who represented the President/CEO of the Africa Development Studies Centre (ADSC) and Douglas Development Institute (DDI), said public procurement accounts for an estimated 15 to 30 per cent of Nigeria’s Gross Domestic Product (GDP).

He added that procurement was also linked to between 50 and 60 per cent of leakages in public financial management.
“Subnational procurement systems are where policy meets people, where transparency and value for money either take root or falter,” Idahosa said.

He urged the new forum to deepen accountability, professionalism, efficiency and transparency in procurement processes across the states.

Idahosa said ADSC and DDI had supported procurement reforms through capacity-building programmes, institutional development initiatives, study exchanges and knowledge-sharing platforms.

He cited a study exchange to South Africa involving one of the forum’s members as an example of efforts to expose Nigerian procurement officials to international best practices.

Also speaking, the Director-General of the Nigeria Governors’ Forum, Abdulallateef Shittu, said the inauguration came at a critical period when Nigeria was seeking to recalibrate its economic architecture.
Shittu said public procurement was central to budget implementation and the delivery of government projects, stressing that state procurement authorities had a huge responsibility to ensure that public funds were spent efficiently.

He urged members of the forum to uphold professionalism, transparency and efficiency in the discharge of their duties.
The Director-General of the federal Bureau of Public Procurement (BPP), Adebowale Adedokun, said President Bola Ahmed Tinubu was aware of the inauguration and had endorsed the initiative.

Adedokun said the forum aligned with the administration’s Renewed Hope Agenda and its efforts to improve living standards and reduce poverty.

He described the inauguration as a significant development in Nigeria’s procurement history, arguing that an effective and transparent procurement system could attract foreign direct investment, increase GDP and stimulate domestic industries.

He urged state procurement regulators to strictly adhere to due process, fairness and transparency in the implementation of public projects.

The newly elected chairman of the forum, Ehimoni Ibiyomi, said his emergence marked the beginning of a new institutional chapter in efforts to strengthen public procurement administration and professional practice across the states.

Read also:

Ibiyomi said the forum would not compete with the federal BPP but would complement national procurement reforms by strengthening subnational institutions and ensuring that challenges and innovations from the states were reflected in national procurement discussions.

He called for stronger collaboration with the BPP, World Bank and other development partners in areas including professionalisation, capacity building, digital procurement, procurement data management, performance measurement, research and institutional development.

According to him, the forum would also pursue partnerships with professional bodies, financial institutions, technology organisations and other stakeholders whose expertise could strengthen public procurement systems.

“Our vision is to build a strong, professional, collaborative and nationally recognised platform for the Heads of State Public Procurement Regulatory Authorities, capable of contributing meaningfully to procurement reform and good governance in Nigeria,” Ibiyomi said.

“We want a Forum that does not merely meet, but delivers.”