The Nigeria Revenue Service (NRS) has expressed its commitment to supporting proposed amendments to the Public Procurement Act 2007. The goal is to reduce the number of abandoned government projects and enhance accountability in public spending. NRS Executive Chairman Zacch Adedeji made this pledge during a meeting with the Director-General of the Bureau of Public Procurement (BPP), Adebowale Adedokun, and his delegation in Abuja.
Adedeji emphasized that improving public procurement would encourage voluntary tax compliance. He noted that Nigerians would be more likely to pay taxes if they were assured that government revenue was being spent effectively. Abandoned projects, he said, represent wasted tax revenue. Adedeji also promised to provide financial and technical support for the proposed reforms, including human resources.
The BPP is pursuing at least 29 procurement reforms that require amendments to the existing law. Adedokun disclosed that the proposed reforms include electronic procurement, community-based contracting, and sector-specific procedures. Additionally, the reforms aim to provide preferential opportunities for women, young people, persons with disabilities, and military veterans.
One of the proposed reforms is community-based procurement. This would allow local businesses to compete for smaller government contracts without having to travel to Abuja. The proposed electronic procurement system would digitize processes from contract assessment to payment. This would strengthen tax collection and reduce revenue leakages.
Adedokun defended revised procurement approval thresholds. He stated that heads of government agencies could approve certain contracts below ₦10bn and goods and services contracts below ₦5bn, subject to established procedures. He also warned public institutions against circumventing procurement regulations. Adedokun stressed the importance of obtaining certificates of no objection where required.
The BPP chief emphasized that the goal is not to achieve the lowest cost but to obtain value for money. He proposed establishing a comprehensive national contractors' database to strengthen compliance and improve transparency. This database would help track contractors and ensure that they are meeting their obligations.
The NRS and BPP will collaborate to identify regulatory challenges and develop practical solutions to improve public procurement. NRS Group Director of Support Services, Kunle Ogidi, commended the BPP for providing procurement training and technical assistance to the revenue agency. The two institutions will work together to ensure that public procurement is transparent, efficient, and effective.
Key points
- The Nigeria Revenue Service has pledged to support proposed amendments to the Public Procurement Act 2007.
- The proposed reforms aim to reduce abandoned government projects and enhance accountability in public spending.
- The Bureau of Public Procurement is pursuing at least 29 procurement reforms requiring amendments to the existing law.
