On October 17, 2023, the Chairman of the Economic and Financial Crimes Commission (EFCC), Ola Olukoyede, revealed that Nigerian taxpayers lost N2.9 trillion between 2018 and 2020 due to contract and procurement fraud alone. Olukoyede made this startling revelation during his Senate screening and confirmation hearing, highlighting that the amount lost could have funded the construction of at least 1,000 kilometers of roads, built nearly 200 standard tertiary institutions, or educated approximately 6,000 children from primary to tertiary levels at N16,000,000 per child.

Additionally, findings by the Council of the Chartered Institute of Forensics and Fraud Examiners of Nigeria showed that its inability to implement procurement laws costs it over N300 billion annually. A report by the Centre for the Study of the Economies of Africa (CSEA) revealed that Nigeria has lost at least $18 billion to financial crimes and corruption stemming from procurement processes.

Amid these revelations, integrity icons and opinion leaders from the anti-corruption circle have repeatedly stressed the need for Nigeria to establish a National Procurement Council, in line with the Public Procurement Act of 2007, to standardize procurement costs in public and private sectors according to best global practices.

EFCC Chairman Ola Olukoyede underscored the critical need for a standardized and transparent procurement system to curb massive fraud losses during his Senate screening. The Public Procurement Act of 2007 could be a significant step in this direction if properly implemented.

Babayola Mohammed, an Integrity Icon of Accountability Lab Nigeria in 2022, emphasized the need for governments at all levels to be blacklisted from accessing domestic and foreign loans for capital projects if they fail to establish a workable and transparent procurement system. He stressed that integrity should be a basic qualification for procurement practitioners. He called for political will from both federal and state governments to ensure that the Bureau of Public Procurement (BPP) is backed by legislation, making it independent and free from political interference.

Mohammed effectively blocked many revenue leakages as the Director-General of the Due Process Bureau in Gombe advocated for governments to have updated procurement laws and regulations that meet international standards. He insisted that an independent Bureau of Public Procurement should be closely monitored by relevant integrity and transparency organizations, free from political manipulation.

Odeh Friday, Country Director of Accountability Lab Nigeria, asserted that procurement-related corruption accounts for significant illicit practices and financial crimes across all government ministries, departments, and agencies (MDAs) at both federal and state levels. He called for a multi-pronged approach to reverse this trend and promote integrity in the procurement sector. He advocated reviewing existing procurement laws, enhancing regulatory mechanisms, and adopting gender-focused procurement regulations.

He further called for investment in e-procurement platforms, electronic bidding systems, monitoring dashboards, and Open Contracting Standards to streamline procurement processes and minimize opportunities for corruption. He emphasized the importance of capacity-building for procurement agencies and officers to improve their skills and navigate e-procurement systems ethically, enhancing transparency.

He also highlighted the need for real-time publication of procurement data to ensure transparency throughout the procurement cycle, from planning to contract award and implementation. He suggested adopting programs like Ethics 1st, which supports companies in improving their business ethics and integrity systems and recognizing integrity icons—responsible public officials who uphold ethical standards in procurement.

Building a culture of accountability through citizen engagement, journalist, and civil society oversight is crucial to ensuring the judicious use of public funds. Awareness campaigns can educate citizens about their rights and responsibilities in monitoring government projects, empowering them to hold public officials accountable and demand transparency in procurement practices.

Odeh concluded by advocating for the widespread adoption of digital procurement systems and enhanced oversight mechanisms, building on the progress made by initiatives like the Nigeria Open Contracting Portal and the World Bank State Fiscal Transparency, Accountability, and Sustainability (SFTAS) program. This, he noted, has the potential to rebuild trust in public procurement and ensure that resources are used efficiently and ethically.

Accountability Lab Nigeria’s Creative Storytelling Fellowship is proudly supported by the John D. & Catherine T. MacArthur Foundation and Luminate.