The United States government, in its latest Trade Estimate Report, has raised concerns over widespread corruption and opacity in Nigeria’s public procurement system, particularly pointing fingers at the National Assembly and other federal agencies for undermining due process.
According to the report, several U.S. firms have expressed frustration over the lack of transparency and corrupt practices that plague Nigeria’s procurement processes.
These issues, the report claims, have created a hostile environment for foreign investment and fair competition.
The Public Procurement Act of 2007, which established the Bureau of Public Procurement (BPP) as the regulatory authority for federal procurement activities, was designed to bring structure and accountability.
However, the U.S. notes that many Nigerian agencies routinely bypass the procurement standards laid out by the BPP.
Under the current law, only companies that are majority-owned by Nigerians can bid on contracts valued between ₦2.5 million ($1,600) and ₦100 million ($64,000) for goods, and up to ₦1 billion ($640,000) for services and works.
Contracts beyond these thresholds are open to both local and foreign-owned firms. Yet, even in these cases, the report indicates inconsistent adherence to procurement guidelines.
In theory, no procurement process should commence without verifying available funding and securing a ‘Certificate of No Objection to Contract Award’ from the BPP.
Despite this, several government entities reportedly proceed with contract awards without proper compliance.
While the U.S. acknowledges that Nigeria has made “modest progress” in fostering competitive and open bidding — including the publication of some procedures and contract opportunities on the BPP website — significant loopholes remain.
A major point of criticism in the report is directed at the National Assembly, which allegedly operates its own independent procurement system, free from the scrutiny and regulation of the BPP. This exemption, the report states, undermines efforts to instill transparency and discourages reputable international firms from participating in government tenders.
Even when U.S. companies secure contracts, the delays in payments are so frequent that they often opt out of future bids.
The report also highlighted that foreign government-backed financing arrangements sometimes play a decisive role in securing government contracts in Nigeria, creating an uneven playing field.
The issue of procurement fraud has been a long-standing barrier to Nigeria’s development.
In January, EFCC Chairman Ola Olukoyede described public sector corruption as Nigeria’s “biggest problem,” revealing that 90% of fraud cases in the public sector stem from contract and procurement irregularities.
Speaking during a strategic meeting with officials from the BPP, EFCC spokesperson Dele Oyewale quoted Olukoyede as saying that fraudulent practices — such as contract splitting, commingling of funds, and other illegal tactics — have drained public resources and stalled infrastructural development.
“This challenge affects everything from infrastructure to essential services,” Olukoyede said. “If we’re to change the course of this country, it starts with accountability in procurement.”
The EFCC and BPP pledged to collaborate more closely in combating these issues and restoring integrity to the system, with the goal of improving investor confidence and ensuring that Nigeria’s public resources are used for genuine development.
