Nigeria Spends $10billion Yearly On Violation Of Public Contract Laws

 

According to a new report by Agora Policy, an abuja base think-tank, the Nigerian economy is losing at least $10 billion annually due to lack of transparency and accountability in public contracts procurement.

Speaking on the report Nigeria’s current public procurement practices established significant correlation between weak public procurement procedures and corruption and its associated consequences such as poverty, infrastructural deficits and underdevelopment.

“The assessment put government’s revenue loss to underhanded transactions at 60 percent, averaging US$10 billion annually,” the report said.

The report stated that  inflation of contract costs, absence of procurement plans, poor project prior prioritization budgeting processes, lack of competition, and, manipulations of procurements in Nigeria’s contract award preprocess report also noted, “In many instances, these civil servants source multiple bid proposals from favoufavoredractors and award jobs to them for some negotiated returns."

It further explained that some civil servants even award contracts to their persons registered specifically to make money in violation of regulations against conflict of interests.

Suggesting a solution, the report recommended an innovative and enduring mechanism for reporting corruption in procurement without having to insist on the disclosure of the identity of the whistleblower.

“This is necessary because people with information on corruption in the system tend to be discouraged by inadequate protection,” Agora Policy said

According to the report, there is also a need for improvement in remuneration for officials working in the public service.

“It is tempting when the people with the power to process the kind of huge contracts awarded in government receive paltry salaries and emoluments and are denied any incentives capable of sustaining the principles and values of honesty, morality, and, patriotism,” Agora Policy said.

The report also recommended the need to ehancenhancelegal the framework supporting some of the initiatives, faithfully enforce or implement existing laws, improve the capacity and funding for some of the implementing agencies, enhance collaboration across government tiers, and implement a sustained and strategic campaign to promote value reorientation.

The report recommended the strengthening of the Office of the Auditor General of the Federation through improved staffing and better remuneration of the staff of the agency, and prompt presidential assent to the newly passed audit bill.

“While the Auditor-General of the Federation (AuGF) has a responsibility to eradicate corruption from Nigeria’s public finance system, this responsibility is limited to the extent that the country’s audit law permits,” said the report.

“Nigeria needs a fresh law that guarantees independence and powers to sanction the AuGF in line with established standards of the International Organisation of Supreme Audit Institutions (INTOSAI). Without the powers to sanction, the AuGF is more or less a toothless bulldog.”