THE PARADOX OF PLENTY: A REFLECTION ON NIGERIA’S PUBLIC PROCUREMENT STORY

In the hearts of Nigerians, there's a deep-seated sense of resilience and hope that resonates through our history. As we come together on June 12th, it's more than just a date on the calendar—it's a symbol of our commitment to democracy, justice, and progress. Today, we reflect on the journey we've travelled and the challenges we've faced, but also on the strides we've made and the future we envision for our nation.

Embedded within Nigeria's economic framework lies public procurement, serving as the vital conduit through which essential resources and services are distributed across our nation. However, if we are being candid about this cornerstone of our economy, we cannot deny that our Nation is struggling—crippled by a persistent pathology of inefficiency, corruption, and mismanagement. These procurement failures are not merely financial losses; they strike at the core of trust between the Nigerian people and their government. This erosion of trust has proven detrimental to our nation's development and stability.

When procurement processes falter, it's not just about dollars and naira—it's personal. It's about the aspirations we hold for our children, the health and well-being of our communities, and the collective strength of our nation. The repercussions of these failures are a direct threat to our shared prosperity and the realisation of a better Nigeria.

The Extent of the Problem

Recent revelations have brought to light the staggering scale of these procurement issues, and I find the numbers both shocking and deeply troubling. Between 2018 and 2020, Nigeria’s anti-corruption agency estimated that contract and procurement fraud amounted to approximately 2.9 trillion naira ($7.6 billion). This staggering figure represents a shocking 10% of the total budgetary allocations for that period. To put it into perspective, this loss eclipses the cumulative foreign direct investment Nigeria received over the same timeframe, highlighting the severity of the situation.

When I consider these figures, I am struck by the immense opportunities for development and growth that have been lost. This 2.9 trillion naira could have transformed our nation. It could have funded new schools, hospitals, and infrastructure projects, significantly improving the quality of life for countless Nigerians. Imagine the roads that could have been built, the healthcare facilities that could have been equipped, and the educational institutions that could have been enhanced with these resources.

What troubles me the most is the human cost behind these numbers. I think about the children who continue to study in dilapidated classrooms, the patients who lack access to essential medical care, and the communities still waiting for basic amenities like clean water and reliable electricity. These lost resources represent lost opportunities for millions of Nigerians to lead better lives.

This financial haemorrhage underscores not just a fiscal crisis but a moral one as well. It speaks to a system that, instead of serving its people, is failing them at every turn. As a Nigerian, I feel a deep sense of urgency and responsibility to address these issues. The squandered 2.9 trillion naira is a stark reminder of what is at stake: our collective future, our progress, and our nation's potential. This situation calls for immediate and decisive action to reform our procurement processes, ensure accountability, and reclaim the trust of the Nigerian people. For me, it is not just about the numbers; it is about the lives and futures that hang in the balance.

Historical Context and Reform Efforts

The roots of these failures run deep, and they are both intricate and daunting. Over the years, various attempts at reform have been made, and yet, there has been little progress. Take, for instance, the overhaul of the procurement policy in 2007 and the introduction of the Nigerian Open Contracting Platform (NOCOPO) in 2018. These initiatives were supposed to usher in a new era of transparency and accountability, and yet, they have largely floundered.

As we reflect on these efforts, one is struck by the myriad challenges that have impeded their success. Incomplete implementation, bureaucratic fragmentation, and, most notably, a glaring lack of political will have all contributed to their failure. Despite the introduction of NOCOPO, a platform aimed at increasing transparency, its adoption and effective use across all levels of government have been met with significant obstacles.

The persistence of these issues leaves me deeply concerned. It suggests to me that surface-level reforms are simply not enough. We need a fundamental shift in the very culture that governs public procurement in Nigeria. It's not just about changing policies or implementing new platforms; it's about transforming the mindset and behaviour of those responsible for managing our nation's resources.

As a Nigerian, I believe that true reform must start from within. It requires a collective commitment to transparency, integrity, and the common good. It demands that we hold ourselves and our leaders accountable for the decisions we make and the actions we take. Until we address these underlying cultural and systemic issues, I fear that we will continue to grapple with the same challenges, and our aspirations for a better Nigeria will remain out of reach.

Recent Developments in Public Procurement Reform

As of 2024, the situation remains deeply concerning, with new revelations and scandals emerging regularly, serving as stark reminders of the urgent need for comprehensive reform. Despite previous attempts at reform, it is disheartening to see that the transparency and efficiency of our procurement system have not seen significant improvement.

In response to these ongoing challenges, the government has launched new initiatives aimed at strengthening the procurement process. One such initiative is the deployment of e-Government Procurement (e-GP) systems, which hold the promise of revolutionising how procurement is conducted in Nigeria. These systems aim to streamline processes, minimise human error and interference, and increase transparency and accountability throughout the procurement lifecycle.

Additionally, the establishment of the Public Procurement Research Centre at Ahmadu Bello University represents a significant step forward in efforts to address procurement challenges. This centre serves as a hub for research, training, and innovation in public procurement, providing invaluable insights and expertise to policymakers, practitioners, and stakeholders across the country.

As we reflect on these developments, we should be cautiously optimistic about the potential impact they could have on our procurement landscape. However, I recognise that the road ahead will not be easy. It will require sustained commitment, collaboration, and a willingness to confront the entrenched interests and systemic obstacles that have hindered progress in the past.

These initiatives represent more than just policy measures; they embody the hope for a better, more transparent, and accountable government. They symbolise our collective determination to overcome the challenges that have plagued our procurement system for far too long. And as Nigerians, we should be committed to doing our part to ensure that these efforts translate into meaningful change for the benefit of all.

Continued Corruption and Economic Impact

Corruption remains a formidable barrier to meaningful procurement reform, and I am deeply troubled by its pervasive presence in our system. High-profile cases continue to emerge, casting a shadow of doubt over the integrity of our government and institutions. The suspension of the humanitarian minister over suspicious financial dealings and the ongoing investigations into former governors and ministers implicated in alleged fraud cases involving trillions of naira serve as painful reminders of the scale of the problem.

These cases not only drain public resources but also undermine trust in our government and deter much-needed foreign investment. As a Nigerian, I feel the weight of these scandals on our nation's shoulders. The negative publicity they generate tarnishes Nigeria's international reputation, portraying us as a country plagued by corruption and instability. This damaging perception makes it increasingly challenging to attract reputable investors who seek transparency, accountability, and a stable business environment.

The consequences of corruption extend far beyond financial losses; they erode the very fabric of our society and hinder our path to prosperity. I believe that rooting out corruption is not just a moral imperative but an economic necessity. It is essential for building a fair and inclusive economy that benefits all Nigerians and attracts the investment needed to drive sustainable growth and development.

As we reflect on these challenges, let us be reminded of the urgency of our fight against corruption. It is a battle that requires unwavering determination, bold reforms, and collective action. Each of us has a role to play in combating corruption, whether it's through holding our leaders accountable, advocating for transparency and accountability, or refusing to participate in corrupt practices ourselves.

Economic Growth and Procurement’s Role

The Nigerian economy has exhibited signs of growth, with a projected 3.1% rise in GDP anticipated for 2024. However, this growth hangs precariously in the balance due to the persistent failures in procurement that plague our nation. These failures cast a dark shadow over crucial sectors such as infrastructure development, healthcare, and education, areas that are fundamental to our nation's progress and well-being.

The allocated infrastructure spending budget for 2024 stands at ?1.32 trillion, a significant sum by any measure. However, it is troubling that this allocation falls short of the required investment needed for sustainable development. This shortfall means that many critical projects may face delays or remain unfinished, perpetuating the cycle of underdevelopment and impeding our nation's growth trajectory.

For me, these procurement failures hit close to home. I see the impact firsthand in my home state of Imo, where inadequate infrastructure hampers economic activities and limits access to essential services. I witness it in the struggles of families who lack access to quality healthcare and education, perpetuating cycles of poverty and inequality. These failures are not just abstract concepts; they have real, tangible consequences for the lives of millions of Nigerians.

As a citizen deeply invested in the future of my country, I am committed to advocating for change. I believe that addressing these procurement failures is not just a matter of economic policy but a moral imperative. It is about ensuring that every Nigerian has access to the opportunities and resources they need to thrive. It is about building a nation where progress is inclusive and sustainable, where no one is left behind.

I am hopeful that by shining a light on these challenges and demanding accountability from our leaders, we can pave the way for a brighter future for Nigeria. Together, we can overcome the obstacles that stand in our way and build a nation that we can all be proud of—a nation where prosperity, equality, and opportunity abound for all.

The Consequences of Procurement Failures

The repercussions of these systemic failures weigh heavily on my mind, as I see their devastating impact on our nation's well-being. The inefficient allocation of public resources has far-reaching consequences, manifesting in subpar infrastructure, inadequate healthcare, and faltering educational systems. These are not just abstract concepts; they are tangible realities that affect the lives of everyday Nigerians.

Take, for example, the state of our roads. How poorly constructed infrastructure endangers lives and stifles economic activities in Nigeria. The impassable roads hinder transportation and trade, making it difficult for businesses to thrive and for individuals to access essential services. As a result, economic opportunities are lost, and the potential for growth remains untapped.

In healthcare, we see how shortages of essential medicines and medical supplies directly affect the quality of care patients receive. It's heart-breaking to know that lives are at stake because of bureaucratic red tape and mismanagement of resources. Every Nigerian deserves access to quality healthcare, and yet, these systemic failures deny them that basic right.

Similarly, our educational systems suffer from neglect and underinvestment. Inadequate facilities and materials diminish the quality of education, depriving our youth of the opportunities they need to reach their full potential. As a result, the future workforce is robbed of the skills and knowledge needed to drive our nation forward, perpetuating cycles of poverty and inequality.

The ripple effects of these failures extend beyond the public sector, reaching into the private sphere as well. Corruption in procurement not only discourages honest businesses but also stifles competition, hindering economic growth and innovation. When contracts are awarded based on favouritism or bribery rather than merit, it distorts the market and undermines the principles of fairness and equality. As a result, efficient and innovative firms are crowded out by less competent ones, perpetuating a cycle of mediocrity and inefficiency that stifles entrepreneurship and hampers our nation's progress.

As I reflect on these challenges, I am reminded of the urgent need for comprehensive reform. We cannot afford to continue down this path of systemic failure and neglect. It's time to demand accountability, transparency, and integrity in our procurement processes, both in the public and private sectors. Only then can we build a Nigeria where every citizen has access to the opportunities and resources they need to thrive, and where our nation can truly reach its full potential.

The Political and Economic Context

Understanding Nigeria's procurement issues requires delving into a broader political and economic context. Our nation's economy, heavily reliant on oil revenues, has been rocked by significant volatility due to fluctuating oil prices. This instability has had profound effects, leading to budget cuts and austerity measures that only serve to exacerbate the impact of procurement inefficiencies. As a result, essential services suffer, and the most vulnerable among us bear the brunt of these shortcomings.

Moreover, the prevalence of political patronage systems adds another layer of complexity to the issue; Government contracts being awarded not based on merit, but rather on political allegiance. This practice not only breeds corruption but also perpetuates inefficiency, as resources are diverted to benefit the few rather than the many. It's a vicious cycle that undermines trust in our government and hampers our nation's progress.

Recent political developments have further underscored the urgency of addressing these challenges. While the current administration has made anti-corruption a central pillar of its agenda, progress has been frustratingly slow and uneven. High-profile cases of procurement fraud continue to surface, casting a shadow of doubt over our leaders' commitment to rooting out corruption. For instance, in 2021, a major scandal rocked the nation when funds intended for COVID-19 relief efforts were misappropriated through manipulated procurement processes. As a result, countless Nigerians were left without the support they desperately needed during a time of crisis.

The Role of Civil Society and International Partners

Civil society organizations (CSOs) and international partners are indispensable allies in the fight for procurement reforms. These CSOs play a key role in safeguarding the integrity of our procurement processes. These organizations serve as vigilant watchdogs, tirelessly monitoring procurement procedures and holding officials accountable for their actions. Through their efforts, they ensure that the voices of ordinary citizens like myself are heard and that the government remains responsive to our needs and concerns.

Also worthy of mention is the support and guidance provided by international partners such as the World Bank and Transparency International. Their technical expertise, funding, and access to global best practices are invaluable assets in our quest to strengthen Nigeria's procurement systems. By sharing insights and lessons learned from successful reforms implemented elsewhere, these partners empower us to enact meaningful change and build a more transparent, accountable, and efficient procurement framework.

As we reflect on the collaborative efforts of CSOs and international partners, I am filled with hope for the future of procurement in Nigeria. Together, we can overcome the entrenched challenges that have plagued our system for far too long and pave the way for a brighter, more prosperous future for all Nigerians.

The Broader Governance Challenge

The failure of public procurement in Nigeria serves as a glaring symptom of broader governance challenges that have plagued our nation for far too long. It's a reflection of systemic issues that require urgent and concerted efforts from all stakeholders—government, private sector, civil society, and the Nigerian citizenry—to address. Strengthening our institutions, promoting transparency, and fostering a culture of accountability are paramount in overcoming these procurement failures.

We all should recognise the gravity of the situation and the imperative need for collective action. We cannot afford to stand idly by while corruption and inefficiency undermine our nation's progress and development. It is only through unified efforts and a steadfast commitment to change that we can hope to stem the tide of procurement failures and set Nigeria on a path to sustainable development and prosperity.

The time for change is now. The future of Nigeria hangs in the balance, and the stakes could not be higher. While the journey ahead may be arduous, with determination and unified effort, we can establish a more transparent, efficient, and fair procurement system that benefits all Nigerians. Our collective resolve will not only secure the nation's development for future generations but also reaffirm our commitment to building a Nigeria that we can all be proud of—a Nigeria where integrity, accountability, and opportunity reign supreme.

Democracy Day: A Time for Reflection

Democracy Day holds profound significance for Nigerians, serving as a poignant moment to reflect on our journey towards democratic governance and celebrate the strides made since the restoration of civilian rule in 1999. It's a time to acknowledge the progress we've achieved while also recognising the ongoing efforts needed to fortify our democratic institutions and practices.

Integral to this broader democratic endeavour is the struggle for a transparent and efficient public procurement system. In essence, a functioning democracy transcends merely holding free and fair elections; it encompasses ensuring that the government operates efficiently and transparently to serve its people. Public procurement stands as a litmus test of governmental integrity and effectiveness.

When procurement processes are conducted with transparency and fairness, they epitomise a government that is truly accountable to its citizens and steadfastly committed to the public good. Conversely, opaque and corrupt procurement practices not only undermine trust in governmental institutions but also erode the very foundation of our democracy. Therefore, the quest for a transparent and efficient public procurement system is intricately intertwined with the broader aspiration for a robust and vibrant democracy in Nigeria.

Lessons from the Lagos State Public Procurement space

Governor Babajide Sanwo-Olu's tenure in Lagos State has been marked by substantial reforms and achievements in the public procurement space, reflecting his administration's commitment to transparency, efficiency, and inclusivity. The re-enactment of the Lagos State Public Procurement Law 2021, the integration of e-procurement systems, and various collaborations to promote gender inclusivity highlight the significant strides made under his leadership.

On March 15, 2021, Governor Sanwo-Olu signed the Lagos State Public Procurement Law 2021, a legislative milestone aimed at aligning the state’s procurement practices with global standards. This law was designed to enhance the ease of doing business in Lagos, thereby attracting more investors and fostering economic growth.

Earlier In 2022, Lagos State made a significant leap towards modernising its procurement processes by integrating more Ministries, Departments, and Agencies (MDAs) onto its e-procurement platform. This digital transformation has been particularly beneficial during the COVID-19 pandemic, allowing for seamless procurement of essential materials and services despite lockdowns and social distancing measures. The e-procurement system has reduced opportunities for corrupt practices by digitising the procurement process, thereby enhancing efficiency and fostering a participatory approach where stakeholders can engage actively.

Under Governor Sanwo-Olu's directive, over 110 MDAs have been onboarded onto the e-procurement platform, significantly curbing corruption and ensuring transparency. This initiative has not only streamlined procurement processes but also improved the state's ability to attract a broader pool of bidders, ensuring that public projects receive the best value for money.

As recently as October 2023, Governor Sanwo-Olu pledged to continue collaborating with the United Nations to empower women entrepreneurs in Lagos State. This collaboration which has culminated in ongoing moves to draft a robust Policy Document on Affirmative Procurement which will champion the implementation of affirmative procurement policies that favour women-owned businesses, thereby creating a more equitable business environment. This initiative is a progressive step towards dismantling barriers that women face in the business world, ensuring they have fair opportunities to contribute to and benefit from the state’s economic activities.

Several ongoing and completed projects in Lagos State exemplify the success of Governor Sanwo-Olu's procurement reforms. Some of these projects include the Lagos State Health Scheme which is part of broader health sector reforms. This scheme involves procuring medical equipment and supplies for state-run hospitals. The improved procurement processes ensure that healthcare services are delivered efficiently and cost-effectively.

Governor Sanwo-Olu's administration has equally procured numerous infrastructure projects, many of which highlight the improved procurement processes. These projects were executed with high transparency and adherence to procurement regulations. Significant procurement achievements in the area of inter-modal Transportation include the acquisition of 10-car intra-city metropolitan speed trains for the 37 km Lagos Red Line project, and the completion of the 380-metre-long sea crossing bridge component of the Lagos Blue Line Rail.

Governor Babajide Sanwo-Olu’s tenure has been transformative for the public procurement space in Lagos State. Through legislative reforms, the integration of e-procurement systems, and collaborations aimed at inclusivity, the administration has set a benchmark for transparency, efficiency, and fairness in public procurement. These achievements not only enhance the state's economic prospects but also serve as a model for other states in Nigeria, demonstrating the tangible benefits of procurement reforms in governance and public administration.

Hope Uzodinma, you should take lessons from your colleague in Lagos State. In the business of governance where the leaders are in position to enact the will of the people, Governor Hope Uzodinma of Imo State appears to be missing his cues. His version of governance in Imo, my cherished homeland, resonates with discordant notes, echoing through the halls of our collective consciousness. It stands not as a monument to progress, but as a stark reminder of the frailties of human endeavour, the fragility of systems, and the faltering steps of policies not fully realised. This is not merely a critique but a clarion call for introspection, for the crafting of a governance that mirrors the noble spirit and resilient soul of Imo State—a state deserving of leadership that not only promises but delivers.

A Blueprint for the Future

Looking forward, Nigeria must draw on the lessons of its democratic journey to address its procurement challenges. This involves implementing comprehensive reforms that go beyond mere policy changes. It requires building a culture of accountability and integrity at every level of government and society. The blueprint for the future should include:

Strengthening Legal Frameworks: Nigeria must strengthen its Public Procurement Act of 2007 to close existing loopholes and enforce stricter penalties for breaches. The act should mandate independent oversight bodies and regular audits of procurement processes. Countries like Rwanda have seen success by enforcing strict legal frameworks in public procurement. Rwanda's Office of the Ombudsman conducts regular audits, leading to a notable reduction in procurement-related corruption. In addition, the European Union's Procurement Directives have significantly improved transparency and competition, resulting in savings of approximately €200 billion annually by reducing procurement inefficiencies.

Leveraging Technology: Implementing a nationwide e-Government Procurement (e-GP) system similar to South Korea’s KONEPS, which has streamlined procurement processes and reduced corruption by making all transactions transparent and accessible online. South Korea’s e-GP system processes over 70% of public procurement electronically, saving the government an estimated $1.4 billion annually due to increased efficiency and reduced corruption. In Brazil, the ComprasNet e-procurement system has led to a 20% reduction in costs and increased the competitiveness of the bidding process, with over 95% of procurement processes conducted online.

Fostering Ethical Culture: Establishing continuous professional development programs for procurement officials that emphasise ethics and transparency, similar to the Chartered Institute of Procurement and Supply (CIPS) standards. Lessons can be drawn from Singapore’s Corrupt Practices Investigation Bureau (CPIB) which regularly trains public officials, contributing to Singapore's ranking as one of the least corrupt countries globally, according to Transparency International. Another great example comes from the United States, where the Federal Acquisition Institute provides ongoing training for procurement professionals, which has been instrumental in maintaining high standards of procurement ethics and efficiency.

Engaging Civil Society: Encouraging civil society organizations to monitor procurement processes and report discrepancies, akin to the role played by Transparency International in many countries. Our CSOs should imitate their colleagues in the Philippines, where the Procurement Watch Inc. (PWI) has been actively involved in monitoring procurement, leading to the cancellation of several dubious contracts and saving the government millions of dollars and in India, where the use of social audits in the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme has led to the detection and prevention of numerous cases of fraud and misallocation of resources.

International Collaboration: Partnering with international organizations such as the World Bank and the United Nations Development Programme (UNDP) to adopt global best practices and receive technical assistance for implementing reforms. With specific goals being set and a Performance for Result approach, we can build a sustainable public procurement regime. I believe the world bank can do more for us with properly focused partnerships. The World Bank’s support for procurement reforms in Afghanistan has led to the establishment of the National Procurement Authority, which has saved over $500 million through enhanced procurement practices while Ghana's collaboration with the World Bank to implement the Ghana Electronic Procurement System (GHANEPS) has improved transparency and efficiency, with the system processing over $1 billion in contracts electronically since its launch. Nigeria should not be different.

By drawing on these real-life solutions, facts, and lessons from other countries, Nigeria can create a more transparent, efficient, and fair procurement system. These practical, achievable steps can help build a stronger, more accountable government that truly serves the interests of its people, paving the way for sustainable development and prosperity.

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As Nigerians mark Democracy Day, it serves as a poignant reminder of the role that an efficient and transparent public procurement system plays in our nation's broader democratic development. This occasion presents a timely opportunity for Nigerians to reiterate their unwavering commitment to combating corruption and inefficiency in public procurement. By doing so, we can forge a stronger, more accountable government that genuinely prioritises the interests of its citizens.

June 12 transcends mere commemoration of past achievements; it serves as a resounding call to action for future progress. It reminds us that the fight for democracy is ongoing and that each Nigerian has a vital role to play in ensuring that our nation's resources are utilised wisely and equitably. The vision of a prosperous and democratic Nigeria can only be realised through collective effort, steadfast commitment, and unwavering integrity.

As we celebrate Democracy Day, let us heed this call to action with renewed vigour and determination. Let us redouble our efforts to promote transparency, accountability, and fairness in public procurement processes. Together, we can lay the foundation for a brighter future for all Nigerians—one characterised by good governance, equal opportunity, and shared prosperity.

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