The Nigeria Revenue Service (NRS) and the Bureau of Public Procurement (BPP) have initiated discussions on proposed amendments to the Public Procurement Act 2007. The goal is to improve public fund management, strengthen accountability, and accelerate government project delivery. The proposed review aims to address provisions that may no longer reflect current economic conditions and introduce reforms to make procurement processes more efficient and technology-driven.
NRS Executive Chairman Zacch Adedeji stated that a review of the legislation is necessary to determine whether existing provisions remain relevant to Nigeria's current economic circumstances. He emphasized that some provisions were introduced under conditions that may no longer exist today. Adedeji called for a technical committee to examine proposed changes and coordinate efforts to update the law. The NRS is prepared to contribute its experience in tax reforms and stakeholder engagement to the process.
Adedeji linked improvements in public procurement to the government's ability to strengthen voluntary tax compliance. He argued that citizens would be more inclined to meet their tax obligations when they see clear results from public spending. Abandoned projects represent a loss of public resources, and Adedeji stressed the importance of completing projects within reasonable timelines and ensuring that expenditure delivers intended outcomes.
BPP Director-General Adebowale Adedokun stated that amendments to the existing law are necessary because the Public Procurement Act 2007 cannot accommodate all the reforms the bureau intends to introduce. The proposed changes include an electronic procurement system covering the entire procurement process, from needs identification to final payment. This digital framework aims to support greater transparency and accountability.
Adedokun identified community-based procurement and affirmative procurement measures for young people, persons with disabilities, and veterans as areas being considered under the proposed reforms. The bureau is also seeking to introduce sector-specific procurement approaches that reflect different technical requirements and operational challenges of government agencies. A more flexible framework would enable public institutions to address their operational needs more effectively.
Adedokun emphasized the need for a shift away from procurement decisions based primarily on the lowest bid, stressing that the cost of a contract should not be the only consideration. He explained that a higher-priced proposal could be more beneficial to the government if it offers superior quality or a better prospect of achieving project objectives. Technology will play a central role in modernizing procurement procedures and strengthening oversight.
The proposed amendments aim to ensure that public funds generate the best possible outcomes and that government institutions do not compromise quality in an attempt to reduce immediate expenditure. The BPP is working towards improving contractor categorization and classification, as well as developing a national database of businesses operating in Nigeria. The bureau intends to facilitate, rather than frustrate, the work of public institutions.
Key points
- The proposed amendments aim to improve public fund management and accountability.
- The amendments include introducing an electronic procurement system and sector-specific procurement approaches.
- The reforms seek to ensure that public funds generate the best possible outcomes and that government institutions do not compromise quality.
