Assessment of the Impact of Public Procurement Act 2007 on Construction Procurement in Nigeria.

The Public Procurement Act 2007 was established in Nigeria as a global best practice to sanitise public procurement process in Nigeria. The Act stipulates that all public procurement in Nigeria, as from the date of its promulgation, must follow due process, that is, must be certified okay by public procurement office established specifically to analyse public procurement and issue a certificate of ‘NO OBJECTION’. This is because procurement is a major cost centre of any nation and is important in infrastructure provision. It is an area where corruption is mostly practiced and any nation that is able to get her procurement process right will surely get her infrastructure provision right. The bane of economic development in Nigeria is lack of infrastructure. Nigeria was 122nd in the Global Infrastructure Table in 2014. The World Bank in 2012 reported that Nigeria required 17 million housing units to bridge its deficit and a sum of N59.5 trillion with a conservative unit rate of 3 bedroom bungalow put at N3.5 million per unit. This paper explored the case study approach to evaluate the performance of the Public Procurement Act 2007 in Nigeria. The paper found out that the PPA 2007 did not perform to expectation because of high level of corruption in the country, poor justice administration, politics mixed with procurement, indiscriminate choice of procurement system and poor monitoring and evaluation of projects. The paper recommended the use of “Prudent Contractor Scheme’, fixation of ranges of profit for different projects and treating of construction contractors as a ‘specification product’ and not as a ‘composite product’.

Author: 
Olufemi Adedamola Oyedele

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