1.0 Introduction
1.1 Background of Study
The evolution of public procurement in Nigeria reflects a long-standing struggle with inefficiency, lack of transparency, and widespread corruption. Before the enactment of the Public Procurement Act (PPA) in 2007, procurement practices in the Nigerian public sector were largely unregulated and discretionary. Contracts were often awarded without due process, leading to inflated costs, abandoned projects, and substandard service delivery. According to the World Bank (2003), Nigeria lost billions of naira annually due to corrupt procurement practices and mismanagement in public expenditure, making reform in the sector not just necessary, but urgent.
Public procurement is one of the most significant aspects of governance and public financial management, especially in developing countries like Nigeria where government spending dominates national economic activities. According to the World Bank (2020), public procurement accounts for up to 15% of the gross domestic product (GDP) in developing countries and plays a critical role in service delivery, infrastructure development, and poverty reduction. However, in Nigeria, the procurement process had long been marred by corruption, mismanagement, lack of transparency, and inefficiency before the introduction of reformative legislation (World Bank, 2020). The urgent need for a legal and institutional framework to regulate procurement practices in Nigeria led to the enactment of the Public Procurement Act (PPA) in 2007. The Act was designed to address the irregularities that plagued the procurement process in the public sector and to bring it in line with international best practices. The PPA established the Bureau of Public Procurement (BPP) to serve as the regulatory authority for the monitoring and oversight of public procurement activities at the federal level. The BPP was also tasked with ensuring compliance with the provisions of the Act, promoting professionalism, transparency, accountability, and value for money in public procurement.
Transparency International (2022) reported that despite the existence of the Public Procurement Act, issues such as political interference, non-adherence to procurement guidelines, favoritism, and lack of enforcement still hinder the effectiveness of the procurement process in Nigeria. Osei-Tutu et al. (2019) asserted that the Act has only been partially successful in curbing corrupt practices, largely due to weak institutional capacities and limited political will to implement sanctions against defaulters.
Adewole (2019) stated that one of the major challenges facing the Nigerian public procurement process is the poor implementation of e-procurement systems. While the adoption of digital procurement platforms is intended to improve transparency and efficiency, many MDAs still rely on manual procurement methods that are prone to manipulation and delays (Adewole, 2019).
Oladipo and Akinbile (2021) affirmed that the PPA has brought about some level of improvement, particularly in raising awareness about procurement standards and creating a regulatory body to monitor activities. However, they noted that without consistent capacity building, proper enforcement mechanisms, and active civil society participation, the Act will continue to fall short of its objectives (Oladipo et al., 2021). It is also important to highlight that procurement practices have a direct link to national development. Projects meant to benefit citizens such as road construction, health care infrastructure, and educational facilities are often compromised due to mismanagement in procurement. According to Okoro (2020), when procurement is not effectively managed, the end result is the wastage of public funds, project abandonment, and erosion of public trust in government institutions.
Public procurement is defined as the process through which government institutions acquire goods, works, and services from external sources to carry out their functions and responsibilities (OECD, 2016). It represents a critical component of governance and economic management, as it accounts for a substantial portion of public expenditure and has a direct impact on the delivery of public services. In Nigeria, public procurement plays a central role in infrastructure development, public health, education, and other essential sectors. However, before the enactment of regulatory reforms, the public procurement system in Nigeria was characterized by corruption, lack of transparency, and inefficiency, resulting in enormous losses to the national economy.
The Nigerian government established the Public Procurement Act (PPA) in 2007 to regulate and oversee all forms of procurement by ministries, departments, and agencies (MDAs) of the federal government. The Act led to the creation of the Bureau of Public Procurement (BPP) as the regulatory authority responsible for monitoring, supervising, and ensuring compliance with procurement regulations (Public Procurement Act, 2007). The core objectives of the PPA include promoting transparency, competition, efficiency, and professionalism in the procurement process. Therefore, in Nigeria where the research was carried out, the activities that was conducted is to know the impact of public Procurement Act on the procurement process in Nigeria public sector.
1.2 Statement of Problems
Investigation revealed that the Public Procurement Act (PPA) of 2007 was enacted in Nigeria with the intention of promoting transparency, accountability, competitiveness, and value for money in the procurement of goods, works, and services in the public sector. There is persistent evidence of irregularities, corruption, and inefficiencies that undermine the very objectives of the Act. Instances of contract inflation, poor project execution, favoritism, lack of competitive bidding, and manipulation of procurement procedures remain widespread across ministries, departments, and agencies (MDAs) (Transparency International, 2022).
Additionally, public procurement is a vital tool for national development, yet in Nigeria, the full potential of the PPA is not being realized due to weak institutional enforcement, limited capacity of procurement officers, and political interference. Many public officials lack the adequate training and technical expertise to implement the provisions of the Act effectively, which is contributing to delays, cost overruns, and abandoned projects. In some cases, procurement decisions are influenced by vested interests rather than national priorities or public interest (Oladipo & Akinbile, 2021).
Furthermore, there is limited awareness and participation from civil society and the general public in monitoring procurement activities, thereby reducing transparency and increasing the risk of corruption and mismanagement (World Bank, 2020). It is against this backdrop that this study seeks to examine the impact of the Public Procurement Act on the procurement process in Nigeria's public sector.
1.3 Purpose of the Study
The purpose of this study is to assess the impact of the Public Procurement Act on the procurement process in Nigeria’s public sector. It aims to investigate how the Act has influenced procurement transparency, accountability, and efficiency, as well as to identify the challenges hindering its full implementation. The study will provide recommendations to improve procurement practices and strengthen governance in the Nigerian public sector.
1.4 Aim and Objectives of Study
The aim of the study is to evaluate the impact of the Public Procurement Act on the procurement process in the Nigerian public sector. In achieving this aim, the following specific objectives were laid out as follows:
- To examine the level of compliance with the Public Procurement Act among public sector agencies.
- To assess the extent to which the Act has enhanced transparency and accountability in procurement.
- To identify challenges faced by procurement officers in implementing the Act.
- To analyze the effect of the Act on the efficiency of procurement processes and project delivery.
- To recommend strategies for improving the implementation of the Public Procurement Act.
1.5 Research Questions
The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:
- To what extent do public sector agencies comply with the provisions of the Public Procurement Act?
- How has the Public Procurement Act influenced transparency and accountability in procurement?
- What challenges do procurement officers face in applying the Public Procurement Act?
- What impact has the Act had on the efficiency of procurement procedures and project completion?
- What strategies can be adopted to enhance the implementation of the Public Procurement Act?
1.6 Research Hypothesis
In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.
Hypothesis One
- H0: The Public Procurement Act has no significant impact on the procurement process in Nigeria’s public sector
- H1: The Public Procurement Act has a significant impact on the procurement process in Nigeria’s public sector
1.7 Significance of Study
The outcome of this research will serve as a relevant source of information for policymakers and public officials by identifying the strengths and weaknesses in the implementation of the PPA. This research will also benefit procurement officers and civil servants by accenting the areas where capacity building and training are required.
Furthermore, the study will help civil society organizations, media, and the general public understand the role of procurement reforms in promoting good governance. Increased awareness will lead to stronger public engagement and oversight, which will, in turn, pressure government institutions to act with integrity and accountability.
Academically, the research study will expand the body of literature on public sector procurement and governance in Nigeria. It will provide a foundation for continuous improvement in public procurement practices, contributing to national development and restoration of public trust in government processes.
1.8 Scope of Study
The study will focus on the impact of the Public Procurement Act on the procurement processes within the public sector of Lagos State, Nigeria. The research will cover ministries, departments, and agencies operating within Lagos State, analyzing their procurement practices under the provisions of the Act.
1.9 Limitations of the study
During the course of this study, there were some problems encountered which stood as limitations to the research work. Some of the limitations include:
- Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
- Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
- Initial Cooperation Delay from Respondents: A particular limitation of this work came as a result of the respondent refusal to offer their cooperation at the initial time they were contacted. This contributed in making the success of this research study difficult.
1.10 Definition of Terms
Public Procurement: According to OECD (2016), public procurement is the process by which government agencies acquire goods, services, and works from external suppliers to fulfill their functions. It is a crucial mechanism for delivering public services and managing public resources efficiently.
Public Procurement Act: The Public Procurement Act (2007) is Nigerian legislation that provides a legal framework for the procurement of goods, works, and services by federal government entities. It seeks to promote transparency, accountability, competition, and value for money in the procurement process (Federal Government of Nigeria, 2007).
Transparency: Transparency in procurement refers to the openness and accessibility of procurement information to the public, enabling scrutiny and reducing opportunities for corruption (Transparency International, 2022).
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