BPP reports N1.5tn savings from procurement reforms

FILE PHOTO: The Director-General and Chief Executive Officer, Bureau of Public Procurement, Adebowale Adedokun

The Bureau of Public Procurement has reported saving over N1.5 trillion in public funds in the past 18 months through stricter price benchmarking controls and digital compliance mechanisms introduced as part of ongoing procurement reforms.

The Director-General and Chief Executive Officer of the BPP, Adebowale Adedokun, disclosed this on Friday during a three-day capacity development workshop organised by the Nigeria Deposit Insurance Corporation in collaboration with the BPP in Lagos.

The workshop focused on the theme “Driving Excellence Through Transparency, Compliance, and Efficiency.”

Adedokun described public procurement as a pivotal instrument for national growth, emphasising that it serves as “the strategic compass of national development by guiding public resources toward impactful outcomes that enhance the well-being and prosperity of every citizen.”

Addressing the senior management and executive staff of the NDIC, he stressed that procurement must no longer be viewed as a mere administrative function.

“A well-planned and properly executed procurement process can create jobs, deliver quality infrastructure and services, support local businesses, promote value for money, and ultimately improve the lives of citizens,” Adedokun noted.

He further remarked that “a procurement system is only as strong as the integrity and discipline of those who implement it,” adding that “every procurement decision carries far-reaching consequences for the nation.”

In his opening remarks, the Managing Director and Chief Executive Officer of the NDIC, Thompson Sunday, affirmed the strategic importance of the collaboration, observing that procurement plays a vital role in achieving the corporation’s targets.

He said, “Procurement plays a strategic role in the achievement of the corporation’s mandates and the effective delivery of its strategic objectives. All major projects, service requirements, technology solutions, consultancy engagements, and operational tasks depend on instituting a procurement process that is efficient, transparent, timely, and cost-effective.”

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He reassured participants that “the NDIC remains fully committed to adhering strictly to the provisions of the Public Procurement Act of 2007, accompanying regulations, and directives issued by the regulatory body.”

The workshop highlighted key ongoing procurement reform initiatives designed to modernise Nigeria’s public procurement framework under President Bola Tinubu’s Renewed Hope Agenda, including the transition toward the full digitisation of procurement processes, the deployment of e-procurement platforms, the establishment of strict price benchmarking frameworks, and the enforcement of local content policies.

The sessions also provided regulatory guidance on statutory compliance, procurement planning, contractor performance monitoring, and strict criminal and administrative sanctions for violations under the Public Procurement Act, 2007.

An overarching theme of the three-day session emphasised that public servants and institutional leaders share a collective responsibility to uphold integrity, eliminate fraudulent practices, and maintain strict adherence to legal standards to ensure public funds deliver maximum value to the Nigerian people.

Public procurement in Nigeria historically accounts for up to 70 per cent of total government budgetary expenditure, making it the primary conduit for national capital investment and infrastructure development.

However, system-wide inefficiencies, project inflation, and weak oversight have historically made procurement vulnerable to fiscal leakages. The Public Procurement Act of 2007 established the BPP as the regulatory authority responsible for setting standards, monitoring execution, and enforcing compliance across ministries, departments, and agencies.

Under the ongoing economic reforms of Tinubu’s administration, the BPP has intensified price benchmarking controls and digital compliance mechanisms, yielding substantial savings.

In the past 18 months alone, the bureau reported saving over N1.5tn in public funds that would otherwise have been lost to procurement inflation and procedural loopholes.