Public procurement in Nigeria – still some issues?

Despite the best efforts of the Nigerian Government, and more and more CIPS qualified procurement people in the country, Nigeria still has problems with public procurement.  The FT reports that a contract to build a new runway for the airport in Aruja has been aborted after an inquiry found that the 'winning' bid was more than twice the price of the second placed.

Of course, that may just reflect an evaluation process that weighted non-price factors very highly.  It can happen; I've seen public procurement tenders in the UK where price was only weighted at 20%, so in theory the winning bid could be twice the price of the losing.

But're right, it probably wasn't just that.  Nigeria has apparently failed to set up an "independent council to supervise public procurement as stipulated by a 2007 law" as the FT explains, and there are also estimates that only 15-20% of the annual Government capital expenditure budget actually results in real developments 'on the ground'.

That's a real indication of how much corruption in procurement costs some countries; and a small warning perhaps that when siren voices moan about 'bureaucratic' public procurement processes in the UK / EU, there are some real benefits of having rigorous, transparent and open processes for spending large sums of public money!

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