The Centre for the Study of the Economies of Africa, (CSEA), has said that Nigeria loses at least N18 billion to financial crimes and corruption stemming from procurement processes in the country.
Director of Research at the CSEA, Adedeji Adeniran, disclosed this during a Stakeholders Dialogue on ‘Public Procurement and Good Governance in Nigeria’, held in Abuja on Thursday.
According to him, with public procurement accounting for a significant portion of Nigeria’s spending, the need for proficient procurement professionals cannot be overstated.
Adeniran explained that the procurement sector has been plagued with challenges including inadequate training, outdated practices, and lack of specialized skills.
“The percentage of GDP that is spent on procurement in Nigeria varies over time, but it is estimated to range from 10-25%. Moreover, of the amount spent on procurement, the Anti-Corruption Agencies of Nigeria (comprising all agencies with mandates to investigate corruption and financial crimes) estimates that Nigeria loses $18 billion every year to corruption and financial crimes. This is a staggering estimate, amounting to 3.8% of Nigeria’s GDP in 2022, and it has severe and adverse implications for pro-poor growth and development”, he said.
Noting that an estimated 60% of corruption cases in Nigeria are from the procurement process, he advocated the need for stakeholders to prioritise initiatives aimed at enhancing the capabilities of procurement practitioners at both the federal and subnational levels.
Adeniran also said that collaboration between government agencies, academic institutions, and international partners was key to developing tailored training programs that address the specific needs of procurement professionals.
“These programs aim to equip practitioners with the knowledge and skills necessary to uphold integrity, efficiency, and value for money in procurement processes.
“This includes assessing the technical and technological competencies required to navigate the complex landscape of procurement in Nigeria’s high-corruption environment.
“A behavioural insights lens can therefore be useful to explain why some anti-corruption measures succeed and why others fail or even have an adverse impact. Tools based on behavioural insights have been used to motivate behavioural changes in the public and private sector in many countries, and experiments based on behavioural insights have shown some potential in reducing bribery.
“Our project is therefore examining what kinds of behavioural tools are useful in addressing corruption in public procurement to determine how such tools may be designed and deployed in the Nigerian context.”
Speaking further, Adeniran noted that increasing women’s participation in public sector procurement can disrupt the corruption networks that manipulate procurement processes, thus improving systemic integrity and making procurement fairer.
According to him, the Nigerian government has specified its intention to award 30% of public contracts to women-owned (or women-led) businesses by 2026, adding that much work remains to be done to address the barriers and obstacles to gender-responsive procurement.
