The Procurement Observation and Advocacy Initiative (PRADIN) has called on the Bureau of Public Procurement (BPP) to promptly incorporate the proposed amendments to the Public Procurement Act (PPA) 2007 into its Standard Bidding Documents, commonly known as the Procurement Manual, if the bill is passed into law.
By Chimezie Godfrey
The Procurement Observation and Advocacy Initiative (PRADIN) has called on the Bureau of Public Procurement (BPP) to promptly incorporate the proposed amendments to the Public Procurement Act (PPA) 2007 into its Standard Bidding Documents, commonly known as the Procurement Manual, if the bill is passed into law.
Speaking during a public hearing on the amendment bill organized by the House of Representatives Committee on Public Procurement, Mohammed Attah, PRADIN’s National Coordinator, emphasized the urgency of updating procurement frameworks to address contractor delays and improve public project completion rates.
“We strongly recommend that this amendment, if passed, should without delay be effected by the Bureau of Public Procurement through its Standard Bidding Documents to complement the existing provisions in Section 37 of the PPA 2007,” Attah said.
The bill, titled A Bill to Amend the Public Procurement Act 2007 to Provide for Damage Against the Contractor on Issues Relating to Undue Delay in Completion of Contract and for Related Matters (HB. D3) 2024 – Section 33, proposes measures to hold contractors accountable for delays.
According to Attah, PRADIN, noted several concerns and provided key recommendations:
“Legal Consistency: The organization observed discrepancies in the nomenclature of the law referenced in the public hearing invitation, emphasizing that the Act is universally known as the Public Procurement Act 2007.
“Contractor Grace Period: PRADIN expressed concerns over the proposed 90-day grace period for defaulting contractors, arguing that it is excessive and could disrupt budgetary processes. Instead, the group recommended reducing the window to 60 days.
“Constitution of NCPP: To ensure effective implementation and enforcement of the Act, PRADIN urged the federal government to constitute the National Council for Public Procurement (NCPP), which holds statutory powers to approve policy recommendations from the BPP.”
Attah reiterated PRADIN’s commitment to strengthening Nigeria’s procurement processes and tackling corruption. “Our organization has participated in four prior amendments to the Public Procurement Act and remains dedicated to advocating for reforms that protect public funds and ensure timely project delivery,” he stated.
The amendment bill seeks to address the long-standing issue of abandoned projects caused by contractor negligence and inefficiencies. PRADIN’s input underscores the critical role of civil society in shaping legislative reforms to improve governance and accountability in Nigeria’s procurement sector.
In a memorandum submitted to the House of Representatives Committee on Public Procurement during the public hearing on the proposed amendment, the Chartered Institute of Purchasing and Supply Management of Nigeria (CIPSMN) threw its weight behind the proposed amendment to Section 37 of the Public Procurement Act 2007, emphasizing the need for stricter penalties for contractors who delay project delivery.
The amendment seeks to introduce a 90-day grace period for contractors who fail to deliver projects on schedule, after which they would pay damages of up to five percent of the contract sum. CIPSMN described the proposal as “fundamental” to addressing the proliferation of abandoned projects across Nigeria, which have cost the nation trillions of naira. According to Dr. Abdul A. Mamman, the institute’s North-Central Coordinator, the change would enforce accountability and deter unprofessional practices.
“This proposal will raise the level of seriousness among contractors, signaling that the era of ‘punishable misbehavior’ has arrived in Nigeria’s procurement system. It is critical for reducing inefficiencies and protecting public funds,” Mamman said.
To ensure the amendment’s effectiveness, CIPSMN recommended measures such as improved procurement planning, streamlined project costing methods, and the supervision of project engineers by cross-functional teams. The institute also urged the Bureau of Public Procurement (BPP) to adopt certified procurement auditors and submit bi-annual audit reports to the National Assembly.
CIPSMN concluded that the amendment aligns with global best practices, balancing contractor rights with responsibilities. It emphasized the importance of embedding the new provision in all contract agreements to make it legally enforceable. The institute expressed gratitude to the bill’s sponsor, reiterating its support for reforms aimed at improving Nigeria’s procurement landscape.
In his keynote address, the House of Representatives Committee on Public Procurement, chaired by Rt. Hon. Unyime Idem, during the public hearing on the Public Procurement (Amendment) Bill, 2023, commended the leadership and Secretariat of the committee for their dedication to organizing the hearing.
Idem highlighted the critical challenges plaguing public procurement in Nigeria, particularly the issue of project delays by contractors. He identified factors such as contractor incompetence, economic sabotage, and corruption as key drivers of the problem.
Drawing comparisons to practices in Egypt, he noted that contractors there work continuously, reducing project timelines significantly. “Conversely, in Nigeria, projects meant to last 12 months often take up to six years or risk abandonment, with over 90% of capital projects requiring cost variations due to delays,” he stressed.
Noting that the proposed bill, sponsored by the Speaker of the House, Rt. Hon. Tajudeen Abbas, Ph.D., GCON, seeks to address these inefficiencies, Hon. Idem emphasized the need for contractors to adopt better financial planning and project management practices, such as upfront material purchases to mitigate inflationary effects.
He also called for a cultural shift in project execution to ensure timely delivery of government projects, which would enhance governance and provide tangible benefits to Nigerians.
The hearing concluded with a call for collective action among stakeholders to reform the procurement system intelligently.
Hon. Idem stressed that the legislature must take decisive steps to address project delays and abandoned projects, which have hindered Nigeria’s development and deprived citizens of the dividends of democracy.
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