•Say 60% of budget ends up in private pockets
•Women receive less than 5% of procurement contracts

Nigeria is reeling in over $10 billion yearly procurement fraud perpetrated through corrupt public service and abetted by contractors.

Stakeholders decried this in Abuja yesterday while calling for urgent action, saying the country’s development is not only being truncated by a few individuals but spelling doom amidst rising population and youth unemployment.

The development, according to industry players, who gathered at an event, organised by the Centre for the Study of the Economies of Africa (CSEA), could affect the attainment of sustainable development goals.

Coming at a time when the Senate is being accused of padding the 2024 budget by over N3 trillion, Nigeria, projected to be one of the top three most populous countries in the world shortly, is heavily indebted with poverty, unemployment and economic hardship fuelling the crises.

Country Director of DAI, Dr Joe Abah, speaking at the event said over $10 billion is lost yearly in Nigeria to procurement fraud.

The $10 billion projection by DAI is as high as almost 30 per cent of Nigeria’s 2024 $34 billion national budget, which relies mainly on borrowing.

Abba, who was a keynote speaker at a one-day stakeholder workshop on public procurement and good governance in Nigeria, said for every one Naira spent by the government, an estimated 60 per cent is believed to end up in the hands of private individuals or entities, rather than being utilized for public welfare or development.

Abbah insisted that Nigeria would need to leverage technology to edge corruption and promote transparency, stressing that technology is essential as it allows for explicit display of every procurement detail, making it challenging to bypass.

“The World Bank did a country procurement assessment for Nigeria. And that assessment revealed that of every one naira that the government was spending, 60 per cent of it was going into fraud. Of every one naira, 60 per cent of everything the government was spending was going into private pockets. It then also calculated that Nigeria was losing about $10 billion every year to procurement fraud.

“Utilizing technology is crucial for promoting transparency. It enables a clear view of expenditure in the procurement process. The benefit of technology lies in its ability to provide an audit trail, allowing identification of the point of shutdown and the last user login. This level of transparency is invaluable,” he said.

Executive Director of CSEA, Dr Chukwumma Onyekwena, said the need for transparency in the procurement process is pivotal for the country’s development.

He said: “Transparency lies at the heart of a robust procurement system; it is the cornerstone upon which trust and integrity are built. Without transparency, the entire process becomes susceptible to corruption and inefficiency. Therefore, it is of utmost importance to ensure that every step of the procurement process is conducted openly, with clear guidance and accountability mechanisms. Only through transparency can we guarantee fairness, competition, and value for money, which is the aim of the government.”

Noting that transparency lies at the heart of a robust procurement system, Onyekwena said it remained important to ensure that every step of the procurement process is conducted openly, with clear guidelines and accountability mechanisms.

According to him, only through transparency can Nigeria guarantee fairness, competition, and value for money which is the aim of the procurement.
Onyekwena also stated that the skill gaps in procurement is concerning, stressing that there is a need to urgently address the gap because it is crucial for procurement effectiveness and efficiency.

“The success of any procurement process heavily relies on the competence and proficiency of the procurement officers involved. It is imperative to invest in training and capacity-building projects to equip public sector procurement professionals with the necessary skills and knowledge to navigate the complexities of modern procurement practices. Bridging this gap will enhance the quality of our procurement outcomes and minimise risks associated with inadequate expertise,” Onyekwena said.

Also, a Senior Fellow of AGI-Brookings, Professor Landry Signé reiterated the importance of technology in enhancing the transparency of the procurement process in his opening remark.

“Technology plays a crucial role in ensuring transparency in the procurement process in Nigeria. I recently authored a book on Africa’s fourth Industrial Revolution, and I strongly believe in the significance of technology in this context,” he emphasized.

Deputy Director of the African Procurement Law Unit, Prof. Sope Williams, questioned gender equality in Nigeria’s procurement, adding that women in business are below par in procurement in Nigeria.

According to him, while gender-responsive procurement is important because women make up 50 per cent of the population, they receive less than five per cent of procurement contracts.

One of Williams’ key recommendations is for Nigeria to create legal and policy prioritisation for women in business in procurement.

Williams said, apart from Ekiti state, there are currently no known legal or policy mandates to prioritise gender-responsive procurement in Nigeria.