The Federal Government of Nigeria has introduced a new guideline aimed at promoting integrity, transparency, and accountability in public procurement. The guideline, signed by the Secretary to the Government of the Federation, George Akume, outlines six grounds that could lead to the exclusion of contractors, consultants, and service providers from Federal Government procurement for a period of three to five years. This move is expected to ensure value for money in public expenditure and protect the government from bad and non-performing contractors.
The grounds for debarment include offering bribes or other benefits to influence procurement decisions, conviction for fraud, wilful failure to perform contractual obligations, a history of unsatisfactory performance, falsification of documents, and debarment by a multilateral organisation. The guideline establishes the grounds and procedures for excluding contractors, suppliers, and service providers from participating in Federal Government procurement where they are found to have violated the Public Procurement Act, 2007, or engaged in wrongdoing relating to contract delivery.
The circular containing the guideline was addressed to various high-ranking government officials, including ministers, service chiefs, and heads of parastatals, agencies, and government-owned companies. Akume stated that the guideline was introduced to promote integrity, transparency, accountability in public procurement, and to ensure value for money in public expenditure and protect government from bad and non-performing contractors. The guideline is expected to be implemented by the Bureau of Public Procurement (BPP), which will investigate and notify contractors before a final debarment decision is made.
Under the new guideline, a contractor, consultant, or service provider may face debarment where there is evidence that the firm or individual gave or promised money, gifts, or any tangible item to a current or former employee of a procuring entity or the BPP in an attempt to influence a procurement action or decision. The government also listed offering or giving employment or another benefit that can be quantified in monetary terms to a current or former employee of a procuring entity or the BPP as a ground for debarment.
The guideline further targets contractors that breach government contracts through wilful failure to perform in accordance with the terms of a contract or those with a history of failure to perform or of unsatisfactory performance of a contract. Falsification of documents is also expressly listed as a ground for debarment. In addition, the government said a contractor already debarred by a multilateral organisation may be considered for debarment by the government.
Once a contractor is debarred, Ministries, Departments and Agencies are prohibited from soliciting offers from the contractor, awarding contracts to it, or consenting to subcontracts involving the contractor. The circular also provides that a debarred contractor shall not conduct business with the government as an agent or representative of any other contractor, consultant, or service provider. However, an existing government contract or subcontract may continue despite the debarment where a government agency determines there are other good reasons for doing so.
The guideline stipulates that the Debarment Committee may impose a sanction for a period of not less than three years and not exceeding five years. The BPP is required to acknowledge a debarment request within seven working days, while the Secretary of the Debarment Committee must review the information within 10 working days. Where a case capable of leading to debarment is established, the BPP is to issue a notice to the affected contractor within five working days, containing the specific allegations and grounds for the proposed debarment.
Key points
- The Federal Government has approved new guidelines for debarment of contractors, consultants and service providers.
- The guideline outlines six grounds for exclusion from procurement for between three and five years.
- The guideline aims to promote integrity, transparency, and accountability in public procurement.
