U.S. Government Flags Corruption, Lack of Transparency in Nigeria’s Procurement Processes
Written by Springnewsng Media Limited | April 13, 2025
By Rita Okafor Amarachi – Economy and Business Reporter
The United Sthttp://Nigeria’s procurement processes, with particular criticism directed at the Nigerian Nationalates has raised fresh concerns over corruption and the lack of transparency in Nigeria’s procurement processes, with particular criticism directed at the Nigerian National Assembly. The findings were published in the 2024 National Trade Estimate Report on Foreign Trade Barriers, which highlights challenges facing U.S. businesseshttp://2024 National Trade Estimate Report on Foreign Trade Barriers, which highlights challenges facing U.S. businesses operating globally.
According to the report, many American companies continue to express frustration over irregularities in Nigeria’s public procurement system, citing corruption, delayed payments, and poor transparency as major barriers to doing business in the country.
While the Public Procurement Act of 2007 created the Bureau of Public Procurement (BPP) to regulate and oversee all public procurement activities, the report alleges that many Nigerian agencies often operate outside of its guidelines. It specifically singled out the National Assembly, stating:
“Nigeria’s National Assembly operates its own procurement process that is not subject to BPP oversight and lacks transparency. Although U.S. companies have won contracts in various sectors, difficulties in receiving payments are common and can discourage firms from bidding.”
The report also noted that foreign government-subsidised financing arrangements often play a decisive role in the awarding of government contracts, further complicating the competitive landscape for independent bidders.
Under current Nigerian procurement rules, only majority Nigerian-owned firms can bid on contracts valued between ₦2.5 million (approximately $1,600) and ₦100 million (around $64,000) for goods, and up to ₦1 billion (about $640,000) for services and public works. Above these thresholds, both Nigerian and foreign companies are permitted to bid competitively. However, U.S. authorities observed that these rules are not always followed, and contracts are sometimes awarded without securing the mandatory Certificate of No Objection to Contract Award from the BPP.
Despite these systemic issues, the U.S. acknowledged Nigeria’s “modest progress” in improving procurement transparency, especially through the BPP’s efforts to make procurement procedures and bidding information publicly accessible via its website.
Procurement Fraud: A Longstanding Development Challenge
Procurement corruption has long been a major impediment to Nigeria’s development. In January, the Executive Chairman of the Economic and Financial Crimes Commission (EFCC), Ola Olukoyede, described public sector corruption as the country’s most pressing governance issue.
According to Olukoyede, contract and procurement fraud account for over 90 percent of corruption cases in the public sector. His comments were made during a strategic meeting with top officials of the Bureau of Public Procurement.
EFCC spokesperson Dele Oyewale quoted Olukoyede as saying:
“In the EFCC, we handle both private and public sector fraud. And when it comes to the public sector, which is one of our major problems in Nigeria, we discovered that contract and procurement fraud takes more than 90 percent of the volume of public sector fraud. These range from contract splitting and commingling to other forms of manipulation.”
He further emphasized that corruption in procurement directly affects infrastructure development and service delivery in Nigeria:
“Infrastructure-wise and all other developmental problems are attributable to contract and procurement fraud. It lies with you and with me to make a change. If we can work together, we will be able to leave this country better than we met it.”
As Nigeria continues to seek foreign investment and economic growth, experts say enforcing transparent procurement practices will be critical in restoring investor confidence and driving sustainable development.
