Imperatives of a good procurement system 

BY UMUKORO KELLY OVIE

In Nigeria, weak procurement practices, limited transparency, and inconsistent enforcement of the Public Procurement Act have turned what should be a powerful engine of national development into a recurring source of waste, stalled projects, and public frustration. Understanding why procurement matters—and how deeply it affects daily life—is essential for unlocking the country’s development potential. This article explores the importance of procurement, what the data reveals about Nigeria’s performance, and the practical steps needed to ensure value for money and rebuild public trust.

Few government functions shape citizens’ lives more directly than procurement. When procurement works, schools are built and maintained, clinics receive essential medicines, roads are completed, and social programmes reach the poor and vulnerable. But when procurement fails, the consequences are immediate and tangible: inflated contracts, half-completed infrastructure, delayed services, and scarce resources wasted. Global development research shows that procurement typically represents between 15 and 30 percent of GDP in many countries, making it one of the largest and most consequential areas of government spending. It is the foundation on which development either succeeds or collapses.

Nigeria’s public procurement environment is anchored in the Public Procurement Act (2007) and overseen by the Bureau of Public Procurement (BPP). The Act established clear procedures, thresholds, and institutional structures to harmonize processes across ministries, departments, and agencies. In principle, this framework is strong. In practice, however, compliance remains inconsistent across different levels of government, and many provisions are ignored or weakly enforced.

One of the biggest obstacles is the persistent challenge of corruption. Transparency International’s Corruption Perceptions Index shows Nigeria scoring 26 out of 100 and ranking around 140 out of 180 countries. This low score reflects deep-seated integrity challenges within public institutions, many of which directly intersect with procurement. Although Nigeria has made commitments under the Open Government Partnership and has taken steps to improve procurement disclosure through the BPP, implementation remains partial and slow. Efforts such as transparency units, training programmes, and open contracting initiatives are promising, yet they have not translated into uniform improvements across the entire procurement system.

Enforcement efforts tell a similarly mixed story. Anti-graft agencies such as the EFCC have recorded significant recoveries of stolen assets in recent years, demonstrating the ability to take corrective action when corruption is exposed. However, asset recovery cannot substitute for effective prevention. Strong procurement systems are preventive tools, designed to stop corruption before it occurs, not merely punish it after the damage has been done.

The consequences of failing procurement systems are visible across the country. Corrupt or opaque tendering processes inflate costs and reduce competition, meaning taxpayers pay more while receiving substandard goods, poor-quality infrastructure, and unreliable public services. Weak planning and improper use of procurement methods often result in delays or abandoned projects, leaving communities without essential amenities. In a country facing fiscal strain, procurement inefficiencies further divert scarce public resources away from health care, education, and economic development. Each highly publicized procurement scandal reinforces public mistrust, deepening a cycle of cynicism and reducing citizens’ willingness to support or comply with government initiatives.

There is, however, a pathway forward, informed by global lessons and ongoing local reform efforts. Countries that have improved procurement outcomes have embraced transparent, digital, and clearly documented processes that limit the opportunities for manipulation and reduce human discretion. Nigeria can significantly benefit from scaling up full implementation of the Open Contracting Data Standard (OCDS), which allows procurement information to be published in accessible and machine-readable formats across all stages of the procurement cycle. Greater visibility invites scrutiny from civil society, the media, and the public, reducing the space for corruption and improving the quality of service delivery.

Experience also shows the importance of strengthening procurement professionalism and ensuring that procurement officers across MDAs are properly trained, empowered, and held accountable. Digitization, standardized templates, and real-time monitoring tools help reduce errors and close loopholes. Establishing clearer sanctions for non-compliance—and applying them consistently—sends a strong signal that procurement rules are not optional.

Procurement matters because it is where public money becomes public goods. It is where policy goals translate into real-world outcomes. It is where trust is either built or shattered. Nigeria has the laws and institutions required to create a modern, transparent, and efficient procurement system. What remains is the political will, institutional consistency, and civic vigilance needed to make the system work as intended.

• Umukoro Kelly Ovie is a Procurement Officer with the Africa Network for Environment and Economic Justice (ANEEJ). He writes about governance, integrity systems, and public accountability in Nigeria