PUBLIC PROCUREMENT in Nigeria

1. OVERVIEW OF PUBLIC
PROCUREMENT UNDER
THE PUBLIC
PROCUREMENT ACT
(PPA), 2007

2. Structure of Presentation
 Introduction
 Overview of Nigeria’s Public Procurement Reform
 Fundamental Principles of public Procurement
 Drivers of Public Procurement
 Approving and Awarding Authorities
 Offences and Sanctions
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3. INTRODUCTION
Public Procurement is a Global System adopted by
both the Developed and Developing Nations on how to
derive value for money and improve efficiency in the
use of its scarce resources.
At the inception of democratic government in 1999
Federal Government observed that the contract award
system lacked the required competition and
transparency in the award process.
The World Bank was commissioned in 1999-2000 to
carry out a Country Procurement Assessment Review
(CPAR).
The CPAR report revealed that 60k was lost to
underhand practices out of every N1:00 spent by
Government.

4. Some other key problems identified by the World Bank included:
lack of competition and transparency in project procurement
leading to high cost of projects and loss of confidence in
Government by the public;
nonpublication of contract opportunities;
non prior disclosure of rules to be used in the selection
process;
lack of standard bidding documents;
As a result, the following malpractices were the order of the day:
Bid/Contract splitting;
Use of fake documentations and falsification of facts,
Collusion between bidders and between procuring entities;
Conflict of interest was dominant and unchecked;
Use of inferior/sub-standard materials in Public Procurement;
kickbacks and bribery;
Abandoned Projects; and
Decreased value for money

5. Budget Monitoring and Price Intelligence Unit (BMPIU) was set up in 2001 to mitigate these corrupt practices.
 BMPIU operations were guided by Treasury Circulars issued by the Accountant-General of the Federation.
 Nigeria became signatory to the United Nations Convention against Corruption (UNCAC) on 9th of December
2003 and ratified it on 24th October 2004.
 The UNCAC calls for preventive measures and the criminalization of the most prevalent forms of corruption
in both public and private sectors.
 Article 9 of the UNCAC stipulated that:
 “Each State Party shall, in accordance with the fundamental principles of its legal system, take the
necessary steps to establish appropriate systems of procurement, based on transparency, competition
and objective criteria in decision-making, that are effective, inter alia, in preventing corruption.”
 In line with Article 9 of the UNCAC Nigeria was subsequently required to establish an appropriate
procurement system.
 To Institutionalize the operations of the BMPIU, the PPA was signed into Law on June 4, 2007.
 Nigeria’s Public Procurement Act is modelled after the UNCITRAL Procurement Model Law which has been
adopted by several other countries.
 Nigeria’s procurement reform was one of the important reforms that the International Monetary Fund (IMF)
and World Bank got Nigeria to commit to during the debt relief negotiations.
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6. Procurement
Is the process of the acquisition of Goods , Works
and/or Services at the BEST POSSIBLE TOTAL cost of
ownership, in the RIGHT QUANTITY and QUALITY at the
RIGHT TIME, in the RIGHT PLACE for the direct BENEFIT
or use of Government, Corporation or individuals,
generally via a contract with the aim of achieving value
for money in a fair, transparent, efficient and equitable
manner.

7. Wikipedia
Basic Provisions of the PPA 2007
The Act has a total of 61 sections in 13 parts:
Part 1-establishes the National Council on Public Procurement saddled with the
responsibility of overseeing the other agencies and processes. Spans section 1 and 2.
Part 2- establishes the Bureau for Public Procurement. It spans section 3-14.
Part 3- has just one section 15 which shows the scope of application.
Part 4- has just one section 16 on the fundamental principles for public procurement.
Part 5- provides for organisation procurement. It spans section 17-24.
Part 6- shows the procurement methods for goods and services. Spans section 25-38.
Part 7- talks about special and restricted methods of procurement. Spans section 39-43.
Part 8- talks about procurement of consultancy services. Spans section 44-52.
Part 9- discusses procurement surveillance and review. Spans section 53 and 54.
Part 10- provides for proper disposal of public property. Spans section 55 and 56.
Part 11- outlines the code of conduct for public procurement in section 57.
Part 12- highlights the offences relating to public procurement in section 58.
Part 13- miscellaneous provisions in section 59-61.

8. Fundamental Principles (PPA, 2007)
• Not formalized until funds are available to meet obligations
• Open competitive bidding
• Transparent, timely, equitable ensuring accountability
• Promote competition, economy and efficiency
• Achieve value for money and fitness for purpose.
• Evaluation criteria shall not be changed
• Bidders must possess:
• Adequate professional and technical qualifications
• Adequate Financial Capability.
• Adequate equipment and personnel to carry out the contract
• The legal capacity to enter a contract
• Not be in receivership, insolvency or bankruptcy
• Paid all due taxes, pensions and social security contributions
• Have no director convicted for fraud, financial impropriety.
• Accompany bid with a verifying affidavit.
Based only on procurement plans supported by prior budgetary appropriation.
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9. General Rules
Publication of contract opportunities and contract awards
(transparency)
• Rules clear in advance (transparency)
• Competitive procedures (economy) – also need for competitive supply market!
• Variety of procedures, proportionate to the situation (efficiency)
• Rules on qualification and evaluation criteria, specifications (non-discrimination)
• Review and remedies (accountability)
• Lowest Evaluated Responsible Bid (economy & sustainability)
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10. SCOPE OF APPLICATION
Section 15…..
 Is to all Ministries, Departments and Agencies of Federal Government
 Is to all entities outside the foregoing description which derive at least 35% of the funds appropriated
or proposed to be appropriated for any type of procurement described in PPA, 2007 from the
Federation share of the Consolidated Revenue Fund (CRF).
 Does not apply to the procurement of special goods; works and services involving national defense or
national security unless the President's express approval has been first sought and obtained.
 Federal Government owned Enterprises, Corporations, Councils, Authorities and Commissions if they
utilize public funds,
 Federal Tertiary and Non-Tertiary Educational Institutions;
 Federal Hospitals and other Health Institutions;
 The Central Bank of Nigeria and other Federal Government owned Financial Institutions;
 The National Defence and National Security Agencies
 The National Assembly; and
 The Judiciary.
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11. Drivers of Public Procurement
 The Accounting Officer
Stakeholders within the MDAs
 Tenders Board
 Procurement Planning Committee
 Procurement Unit or Department
 Procurement Officers/Cadre
 Contractors and Service Providers
External stakeholders
 Civil Society and Professional
Associations
 Interested Members of Public
 The Bureau of Public Procurement
Regulator
 ICPC/EFCC/POLICE
Investigator/prosecution
 9 Essential Steps of Public Procurement
 Efficient Procurement Plan Driven by Needs
Assessment
 Appropriation
 Advertisements
 Transparent Prequalification
 Bid Submission
 Bid Opening
 Bid Evaluation – Technical and Financial
 Tender Board/FEC Approval
 Contract Execution
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12. The Accounting Officer
 The Accounting Officer shall:
 be the person charged with line supervision of the conduct of
• all procurement processes- Section 20(1) of PPA 2007
 have overall responsibility for planning and execution of all
procurement activities including evaluation of tenders
 be liable in person for the breach or contravention of this Act or any
regulation made hereunder whether the act or omission was carried out
by him personally or any of his subordinates- Section 20(2a) of PPA 2007
 be responsible for constituting the Procurement Planning Committee
and the Technical Evaluation Sub-Committee
 ensure compliance with the provisions of the PPA 2007
 ensure adequate appropriation is provided for the
 procurement;
 integrate his entity's procurement expenditure into its yearly budget
 ensure that no reduction of values or splitting of procurements is
carried out such as to evade the use of the appropriate procurement
method;
 Liaise with the BPP to ensure the implementation of its regulations
 oversee the Procurement Unit or department and:
Ensure that the Procurement department is adequately
staffed with
 people with technical and Procurement
expertise
 ensure that the staff are of good conduct and
adequately trained
 ensure that that the department is allowed
free hand to operate without undue directives
that might affect the integrity of the
procurement process
 not influence in which ever manner the
outcome of the evaluation process.
 Encourage all staff to disregard any directive
that is not in consonance with the Act,
regulations, manual, extant circular etc.
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13. Tender’s Board
 The Tender's Board is the approving authority for the conduct of
public procurement for procuring entities –
• S.22 of the PPA
 The Tender's Board is to ensure that all contracting and
procurement processes are executed in accordance with:
 good commercial practice;
 BPP’s Policies and Statements of Business Principles;
 The Public Procurement Act 2007; and
• The Procurement Procedures Manual.
 The functions of the Tenders’ Board shall be to approve:
 The entity’s procurement plans
 Prequalification and bid evaluation reports/recommendations
 Contract negotiations
 Contract variations resulting in price changes
 Responses to complaints
 Approve the award of Contract for procurement of goods,
works, and services within the stipulated thresholds
 The Chairperson of the Tenders’ Board shall
constitute a Technical Evaluation
Subcommittee of the Tenders’ Board.
 A Quorum shall be the Chairperson or
Alternate and two other members, one from
the Procurement Unit.
 All meetings shall be held in the presence of
the Secretary or Alternate.
 The decisions of the Tenders Board is final and
shall be communicated to the Minister for
implementation.
 The decisions of all tender’s board shall be
confirmed respectively by the political heads
of the procuring entities, provided that the
political heads are not the Chairmen of the
Tenders Board.
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14. Procuring Entity Member of Tenders Board Position
Ministry
1. Permanent Secretary Chairman
2. Heads of Departments Member
Parastatal
1. Chief Executive Officer Chairman
2. Heads of Departments Member
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COMPOSITION OF TENDER’S BOARDS

15. The Procurement Planning Committee
Procurement Planning is more than just choosing what to
buy and which procurement methods to adopt.
Procurement Planning involves a series of activities that will
guarantee a good procurement outcome.
For each Financial Year, every procuring entity shall establish
a Procurement Planning Committee (PPC) comprising of:
The Accounting Officer of the procuring entity or his/her
representative who shall chair the PPC;
A representative of the Procurement Unit of the procuring
entity who shall be the secretary of the PPC;
Representatives of the Unit directly in requirement of the
procurement (User Department)
A representative of the Financial Unit of the procuring entity
(Bursary Department)
A representative of the Planning, Research and Statistics
Unit of the procuring entity (Physical Planning/Works Dept)
A representative of the Legal Unit of the procuring entity
Technical Personnel of the procuring entity with expertise in
the subject matter for each procurement.

16. The PPC shall be responsible for planning the
procuring entity’s procurement as follows:
1) Prepare the list of all known goods, works and services needed to
achieve the set goals for the procuring entity.
2) Evaluate the list and divide into contract packaging.
3) Carry out appropriate market and statistical survey.
4) Prescribe appropriate methods for effecting the procurements integrate procurement
expenditure into the entity’s yearly budget
5) Ensure that no reduction of values or splitting of procurements is carried out such as to
evade the use of the appropriate procurement method.
6) Ensure that adequate appropriation is provided in the federal budget specifically for the
procurement.
7) Upload the procurement plan on the BPP web portal using the approved planning
software/tool.
8) Prepare an analysis of the cost implications of the proposed procurement.
9) Aggregate the procurement requirements both within the procuring entity and between
procuring entities, to obtain economy of scale and reduce procurement cost.

17. Composition of the PPC
S/N Members of the PPC Position
1 The Accounting Officer or his representative Chairman
2 Representative of the Unit directly in need of the procurement Member
3 Representative of the Financial unit Member
4 Representative of the Planning, Research and Statistics Unit Member
5 Technical personnel of the procuring with expertise in the
subject matter for each procurement
Member
6 Representative of the Legal Unit Member
7 Representative of the procurement Unit secretary

18. 18
Approving Authorities and Procurement Thresholds
Approval Thresholds
 In the absence of the Council, Mr. President
approved the current thresholds which was
conveyed vide SGF Circular Ref No
PROC/OSGF/BPP/709/85 dated 19th January 2022
 The Bureau is empowered to enforce monetary and
prior review thresholds- S.6(1) of the PPA 2007
 Evasion of monetary and prior review thresholds can
invoke severe sanctions

19. 19
Approving
“No Objection”
to award
Goods Works Non-Consultant
Services
Consultant
Services
BPP issues “No
Objection” to award/
FEC approves
N300 million
and above
N1.5 billion and
above
N300 million and
above
N300 million and
above
Ministerial Tenders
Board
N20 million
and above
but less than
N300 million
N30 million and
above but less
than N1.5 billion
N20 million and
above but less
than N300 million
N20 million and
above but less
than N300 million
Parastatal Tenders
Board
N10 million
and above
but less than
N100 million
N20 million and
above but less
than N500 million
N10 million and
above but less
than N50 million
N10 million and
above but less
than N100 million
Accounting
Permanent Secretary
Less than
N20 million
Less than N30
million
Less than N20
million
Less than N20
million
Accounting
Executive Secretary/
CEO
Less than
N10 million
Less than N20
million
Less than N10
million
Less than N10
million
Prior Review
Thresholds

20. 20
Procurement/ Selection
Method & Pre-qualification
Goods Works (N) Non-Consultant Services
(N)
Consultant Services (N
International/ National
Competitive Bidding
N300 million and above N1.5 billion and above N300 million and above Not Applicable
National Competitive Bidding N20 million and above but
less than N300 million
N30 million and above but
less than N1.5 billion
N20 million and above but
less than N300 million
Not Applicable
Request for Quotation Less than N20 million Less than N30 million Less than N20 million Not Applicable
Shopping (Market Survey) Less than N5 million Less than N5 million Less than N5 million Not Applicable
Single Source/ Direct
Contracting
Less than N1 million Less than N1 million Less than N1 million Less than N1 million
Prequalification *N100 million and above *N300 million and above *N100 million and above Not Applicable
Quality and Cost Based Not Applicable Not Applicable Not Applicable N50 million and above
Consultant Qualifications Not Applicable Not Applicable Not Applicable Less than N50 million
Least Cost Not Applicable Not Applicable Not Applicable Less than N50 million
Procurement
Method
Thresholds

21. Implementation of Shopping and Request for Quotation (RfQ)
Shopping Request for Quotation (RfQ)
This is a procurement method that is used for small value (indicated in the
procurement method thresholds) procurements of readily available off-the- shelf
goods, small value construction works, or small value services procurements
This is a procurement method that is used for procurements of small value goods, small
value construction works, or small value services as indicated in the procurement
method thresholds. Their thresholds are above the Shopping Thresholds
Thresholds:
Goods: Less than N5 million
Works: Less than N5 million
Services: Less than N5 million
Thresholds:
Goods: Less than N20 million
Works: Less than N30 million
Services: Less than N20 million
May involve the following:
i. Issuance of Quotation Form to minimum of three (3) unrelated suppliers,
contractors or consultants. However, during unforeseen contingency requiring
immediate purchase under Section 42(1)(b) of the PPA 2007, Quotation Form
may be issued to only one (1) supplier
ii. Specification Sheet
iii. Execution of simple Form of Contract, where necessary depending on the
complexity and nature of the procurement item
Must involve the following:
i. Issuance of Request for Quotation Form to minimum of three (3) unrelated
suppliers, contractors or consultants
ii. Specification Sheet
iii. Bill of Quantities/Activity Schedule
iv. Drawing(s)
v. Execution of simple Form of Contract
vi. Simple Terms & Conditions of Supply
Procurement Method (i.e. Shopping) must be indicated in the Procurement Plan
submitted to BPP early in the year before commencement of issuance of solicitation
documents or publication of procurement opportunities
Procurement Methods (i.e. RfQ) must be indicated in the Procurement Plan submitted to
BPP early in the year before commencement of issuance of solicitation documents or
publication of procurement opportunities
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22. Approving and Awarding Authorities
 The PPA 2007 recognises 2 approving and awarding authorities:
 Accounting Officer- approves and awards
 Ministerial/ Parastatal Tenders Board- approves and award
 The BPP neither approve nor awards Contracts- certifies projects prior to award
 Currently the Federal Executive Council approves projects that have been certified by BPP while the MDA awards
the Contract.
 Section 64 of the FA substituted Section 17 of the PPA as follows:
 Section 17 Subject to the monetary and prior review thresholds for procurements in this Act as may from time to
time be determined by the Council, the following shall be the approving authority for the conduct of public
procurement:
 in the case of:
 Government Agency, Parastatal, or Corporations, a parastatal’s Tender’s Board,
 A Ministry or Extra Ministerial entity, the Ministerial Tender’s Board, and
 the National Assembly, the Parastatal’s Tender’s Board, and
 the Judiciary, the Judicial Bodies Tender’s Board and the Courts Tender’s Board;
 in the case of any other public procurement the value of which exceeds the Ministerial Tender’s
 Board threshold, or any other threshold set by the Bureau and approved by the Council:
 the Federal Executive Council for the Executive Arm of Government, and
 the National Assembly Tender’s Board for the Legislative Arm of the Government, and
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23.  the National Judicial Council Tender’s Board for the Judicial Arm of Government
 The Chief Executive and Accounting Officer of the procuring entity shall chair the parastatal Tender’s
Board; the permanent secretary shall
 Chair the Ministerial Tender’s Board; while the President or his representative shall chair the Federal
Executive Council.
 (3) The Accounting Officers of the Parastatals under National Assembly shall chair the
 parastatals Tender’s Board, while the Clerk to the National Assembly shall chair National Assembly Tenders
Board.
 (4) the Secretaries and Chief Registrars shall chair the boards of the judicial bodies respectively; while the
chief justice of Nigeria or his representative shall chair the National Judicial Council Tender’s board.
 (5) the Secretary to the Government of the Federation or his representative shall be the secretary of the
Federal Executive Council; the Secretary, Directorate of Procurement, Estate and Works shall serve as
Secretary to the National Assembly Tender’s Board, while the Executive Secretary of the Judicial Council or
his representative hall be the secretary of the National Judicial Council Tender’s Board.
 (6) for the Parastatal Tenders Board and the Ministerial Tenders Board, the Directors of Procurement shall
be the Secretaries and in the case of the Judiciary, the Secretaries of the Judicial Bodies and the Chief
Registrars of the Courts thereof shall be the Secretaries.
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24. PROCUREMENT RECORDS
Procuring entities are statutorily required to transmit copies of all
procurement records. Shall be transmitted to the bureau not later than
three (3) months after the end of the financial year
Relevant sections of PPA, 2007
Section 6 (1h) requires BPP to call for such information, documents, records
and reports in respect of any breach, wrongdoing, default, mismanagement
and or collusion has been alleged, reported or proved against a procuring
entity or service provider.
Section 16 (12, 13 & 14) specified that, every procuring entity shall
maintain both file and electronic records of all procurement proceedings
made within each financial year and the procurement records shall be
maintained for a period of ten years from the date of the award.
Section 38 (1) requires every procuring entity to maintain a record of the
comprehensive procurement proceedings.
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25. ADMINISTRATIVE REVIEW
Administrative Review/Complaint
Procedure: Section 54
 All complaints must firsts be
addressed to the Accounting
Officer.
 Accounting officer to decide
complaint in writing addressed to
complainant within 15 working
days
 Provides right of appeal to Bureau
if there is (failure to decide or
if unsatisfied by decision).
 Bureau has to decide in writing
within 21 working days.
 Provides access to Federal High
court within 30 days of BPP
decision if not satisfied with BPP
decision.
 OFFENCES AND SANCTIONS
 The following constitute offences- Section 58(4) of the PPA, 2007
 entering or attempting to enter into a collusive agreement,
 with a supplier, contractor or consultant
 conducting or attempting to conduct procurement fraud by means of
fraudulent and corrupt acts
 directly, indirectly or attempting to influence a procurement process to
obtain an unfair advantage in award of a contract
 splitting of tenders to enable the evasion of monetary thresholds set
 Bid rigging
 Where offers submitted have been pre-arranged between bidders
 directly or indirectly restricting free and open competition leading to
 escalation of costs or loss of value to the national treasury.
 altering any procurement document with intent to influence the outcome of
a tender proceeding
 insertion of documents not submitted at opening e. g. bid security or TCC
 request for clarification in a manner not permitted under the PPA, 2007
 uttering or using fake documents or encouraging their use;
 Willful refusal to allow BPP access to procurement records
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26. Administrative Sanctions
Administrative sanctions for public officers-section 6(e)
the suspension of officers concerned with the procurement or disposal
proceeding in issue the replacement of the head or any of the members
of the procuring or disposal unit of any entity or the chairperson of the
tender's board.
The discipline of the accounting officer of any procuring entity.
The temporary transfer of the procuring and disposal function of a
procuring and disposing entity to a third-party. Procurement agency or
consultant.

27. • Public Procurement Documents
 Public Procurement Act, 2007
 Public Procurement Regulations
• Goods and Works;
• Consultancy/Non-Consultancy Services
 Public Procurement Procedural Manual
 Standard Bidding Documents (Goods and Works)
 Standard Request for Proposals (Services/Consultancy)
 Federal Government Extant Circulars/Guidelines Executive Orders
 Finance Acts
 Others are:
 Financial Regulations
 Public Service Rules
 Other Anti-corruption legislations
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28. THANK YOU!!!