ENGR. EMEKA M. EZEH, FNSE DIRECTOR-GENERAL BUREAU OF PUBLIC PROCUREMENT (BPP)

1. THE REFORMED PUBLIC PROCUREMENT SYSTEM: ISSUES, OPPORTUNITIES AND CHALLENGES @ THE WORKSHOP ON BUDGET IMPLEMENTATION MONITORING AND EVALUATION (BUDGET OFFICE OF THE FEDERATION) by ENGR. EMEKA M. EZEH, FNSE DIRECTOR-GENERAL BUREAU OF PUBLIC PROCUREMENT (BPP) DATE: MONDAY 30TH MARCH, 2009 VENUE: TRANSCORP HILTON, ABUJA TIME: 9.00am

2. HISTORICAL BACKGROUND- What The Procurement System Was Before Now! • A CPAR by World Bank conducted in 1999 – 2000 revealed that, 60k was lost to underhand practices out of every N1 spent by Government. • BMPIU – was set up in 2001 to address short comings. • Operations of BMPIU were guided by Treasury Circulars based on 1958 Act authorizing the Accountant-General of the Federation to issue guidelines on Public Expenditure.

3. HISTORICAL BACKGROUND (Cont’d) • BMPIU was issuing certificates for award and payment including interim payments • BMPIU was fully involved in the implementation of all procurement

4. HISTORICAL BACKGROUND (Cont’d) • The Bureau of Public Procurement was established on June 4, 2007

5. PUBLIC PROCUREMENT ACT • The Public Procurement Act 2007 puts Nigeria in the league of countries with legislation on how Public Funds would be expended.

6. WHAT THE CURRENT PROCUREMENT SYSTEM ENTAILS SCOPE OF APPLICATION OF THE ACT • The Federal Govt. of Nigeria & all Procurement Entities. • All Entities outside the foregoing which derive at least 35% of funds appropriated or proposed to be appropriated for any type of procurement described in this Act from the Federation Share of Consolidated Revenue Fund.

7. SCOPE OF APPLICATION OF THE ACT (Cont’d) • Shall not apply to procurement of Special Goods, Works and Services involving national defence, or national security unless President’s express approval has been first sought and obtained.

8. CORE OBJECTIVES OF THE ACT • Economy & Efficiency • Competition – Providing level playing ground for all strata of bidders • Value for Money • Transparency

9. WHAT THE CURRENT PROCUREMENT SYSTEM OUGHT TO ENTAIL! • Efficient procurement plan driven by NEEDS ASSESSMENT • Budgetary Provision/Appropriation • Advertisement • Transparent Pre-qualification • Submission of Bids • Bid Opening • Bid Evaluation-Technical & Financial • Tender Board Approval • Contract Execution

10. OTHER FEATURES • Creation of Procurement Cadre/Deployment of Procurement Officers in MDAs • Use Standard Bidding Documents for all kinds of procurement • Approved Revised Thresholds • Final Engineering Designs is a Requirement • Enforcement of Sanctions for violators of the Public Procurement Act

11. OTHER FEATURES (Cont’d) • Complaint Mechanism • Procurement Audit • Monitoring & Evaluation • Greater Responsibility now on implementers of government procurement

12. OPPORTUNITIES • Confidence of Foreign Investors in the Nigerian Economy • Equal Opportunities to all bidders • Specialization in all sectors • Ensures Completion of projects • Nigeria will derive value for money • Reduction in Project Costs

13. CHALLENGES • Institutional Resistance • Character Issues • Low/Skewed Reward system • Human Capacity Issues • Lack of incentives for procurement officers

14. CONCLUSION “DON’T DO THE WRONG THING TO KEEP A FRIEND OR TO MAKE ONE” - SRI HAROLD

15. Thank You!