THE IMPACT OF PUBLIC PROCUREMENT ACT ON THE PROCUREMENT PROCESS IN NIGERIA PUBLIC SECTOR (A CASE STUDY OF BUREAU OF PUBLIC PROCUREMENT)
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THE IMPACT
OF PUBLIC PROCUREMENT ACT ON THE PROCUREMENT PROCESS IN NIGERIA PUBLIC SECTOR (A
CASE STUDY OF BUREAU OF PUBLIC PROCUREMENT)
ABSTRACT
Public
procurement is the process by which governments buy inputs for vital
public-sector investments. Those investments, both in physical infrastructure
and in strengthened institutional and human capacities, lay foundations for
national development. The quality, timeliness, suitability and affordability of
those procured inputs can largely determine whether the public investments will
succeed or fail. The Bureau of Public Procurement has established general
policies and guidelines relating to public sector procurement, and for
supervising procurement implementation as well as reviewing the procurement and
award of contract procedures of every public entity to which the Public
Procurement Act applies, including certifying all Federal wide procurement (subject
to the Bureau’s prior review) prior to the award of contracts. This study
therefore, was carried out to examine the impact of Public Procurement Act on
the Procurement Process in Nigeria. The descriptive method of data analysis was
employed while the hypotheses were tested using the SPSS version 20. They
result showed that although there are laws guiding the procurement of public
inputs; the laws are weak and ineffective and thus has not made much
significant impact on the procurement process.
TABLE OF CONTENT
CHAPTER ONE:
INTRODUCTION
1.1 Background of the study
1.2 Problem statement
1.3 Purpose of the study
1.4 Significance of the study
1.5 Study hypotheses
1.6 Scope and Limitations of the Study
1.7 Definition of Basic terminologies
1.8 Organization of Study
CHAPTER TWO:
REVIEW OF
RELATED AND RELEVANT LITERATURE
2.1 Introduction
2.2 Conceptual Review
2.3 Theoretical Framework
2.4 Empirical Studies
CHAPTER
THREE: RESEARCH METHODOLOGY
3.0 Introduction
3.1 Research Design
3.2 Sources of data collection
3.3 Determination of Population
3.4 Determination of sample size
3.5 Instrumentation
3.6 Instrument Validation
3.7 Adopted Method of Analysis
CHAPTER
FOUR: DATA PRESENTATION, ANALYSIS AND INTERPRETATION
4.1 Introduction
4.2 Data Presentation
4.3 Data analysis
4.4 Data Interpretation
CHAPTER
FIVE: CONCLUSION, SUMMARY, RECOMMENDATION
5.1 Introduction
5.2 Conclusion and Findings
5.3 Summary of the Study
5.4 Recommendation
Bibliography
CHAPTER ONE
INTRODUCTION
1.1 Background of the study
Government
all over the world has a common purpose which is to care for its citizens. This
purpose has been seen by many to constitute the sine-qua-non for the existence
of any government. However, the achievement of this objective has been
bedeviled by corruptions and irregularities in the activities and business of
government (Nwafor, 2013). In order to restore the lost confidence of the
citizens on the activities and process of government, policies and enactments
such as the Public Procurement Act 2007 was established to curb the excesses in
government activities and business with a view to ensuring proper regulation in
the procurement process. Also government must ensure transparency and
accountability in its dealings both in business transaction and non-business
activities (Adewole, 2014).
Probity is
believed to be the ultimate aim of providing for the happiness and welfare of
the citizenry and should be the emphasis in the public life (Fayomi, 2013).
Since independence in 1960, Nigeria has passed through military and civilian
rule, the military are authoritative and rule with decree and the civilian are
less authoritative and govern with the constitution and the laws made by the
legislature (Jacob, 2010). Both style of ruling engaged in businesses which the
large part is the award of contract (Jacob, 2010). The process of awarding
these contracts are usually questionable as most of the rich men and women
today became rich overnight upon the execution of government contracts. The
irregularities in this process can be said to be the main cause of the
underdevelopment in this part of the world.
According to
Ray (1998) to achieve development, requires making some hard choice, punching
and jettisoning old methods of doing things that have contributed to
underdevelopment. Prior to 2007, to regulate the award of contracts was
difficult as there was no direct statutory provision for it in Nigeria and the
result is that the award of contract becomes a means by which the government
and the ruling elites reward their friends and cronies and by which they too
amass wealth (Jacob, 2010). At this time it was extremely difficult to get best
value for money in public procurement practices (Onyekpere, 2009). Federal
government of Nigeria under the President Olusegun Obasanjo administration
seeing the level of corruption in the public procurement process, commission
World Bank to carry out an investigation into Nigeria procurement process. At
the end of the investigation, World Bank came up with a report called Country
Procurement Assessment Report (CPAR). The report revealed that Nigeria was
losing average of $10 billion annually due to various irregularities associated
with public procurement and contract awards. As responds to these problems
public procurement bill was sent to national assembly under President Olusegun
Obasanjo regime and was eventually pass into law under the Umaru Musa Yar’Adua
administration (Adewole, 2014).
1.2 Statement of the Problem
The early
oil boom for Nigeria in 1970s saw the country rack in so much money which had
led to her mismanagement of the resources. There have been existing open abuses
to rules and standards in the award and execution of public contracts in
Nigeria. These were evident in over-invoicing, inflation of contract costs, and
proliferation of white-elephant projects and diversion of public funds through
all kinds of manipulation of contract system. The regulatory bodies that were
set up to ensure compliance with laid down rules and regulations on procurement
and award of contracts in the public sector appeared weak and ineffective. This
resulted in a high level of corruption and enormous wastage of public
resources, lack of transparency, accountability, fairness and openness. The
situation made foreign and even local investors to lose confidence in the
Nigerian economy. It must be noted that the prevailing high level of corruption
was closely linked up with the public sector procurement systems, and
considering that about ten percent of the gross domestic product (GDP) must
pass through the procurement systems. It then became imperative that the public
procurement systems must be reformed if Nigeria must achieve economic growth
and developmental strides in this new millennium. It is on this premise that
this study was undertaken to examine the impact of public procurement act on
the procurement process in Nigeria public sector.
1.3 Objective of the study
The study
aims to achieve the following objectives:
a) To find out if there are existing laws
guiding procurement procedures in the public sector.
b) To determine if the laws guiding the public
sector procurement process is effective.
c) To examine the impact of the public
procurement Act on the procurement process in the public sector.
1.4 Significance of the Study
Public
procurement has everything to do with the public just as its name goes. Its
financing is drawn from the tax payers’ money and the oil revenue. Thus, it is
necessary that oversight functions are not just carried out alone by those
appointed but that the public become aware of what is happening in the public
procurement scene. This is to enhance their trust in the agency and their
representatives. Furthermore, an understanding of the public Procurement Act
and how it works will serve as a tool to checkmate the excesses of the
institution. This is why this study is marked significant.
1.5 Research Hypotheses
The study
formulated and developed for testing, the following hypotheses:
H0: The
Public Procurement Act is weak and ineffective on the Procurement process in
the Public sector.
Ha: The
Public Procurement Act is weak and ineffective on the Procurement process in
the Public sector.
H0: There is
no significant impact of public procurement Act on the Public sector
procurement procedure.
Ha: There is
no significant impact of public procurement Act on the Public sector
procurement procedure.
1.6 Scope and Limitation of the Study
The study
specifically takes on the public procurement Act in Nigeria with special
reference to the Public sector. There are procurement procedures and Acts in
the Private sector but this study is limited to the Public sector. Furthermore,
this study adopted the descriptive statistical method whereby the questionnaire
was used to elicit responses from the respondents to reach a conclusion. This
is a limitation, because, further studies can adopt other methods like the
investigative kind of method or the use of unbiased data from the Bureau of
public procurement in order to examine the effectiveness of the Act and in
extension, the Bureau.
1.7 Definition of terms
For the
purpose of this study, some terms were repeatedly used throughout this study
and as such its pertinent that we provide clarity to these terms for effective
comprehension.
Public: This
word in this study refers to the people. The masses or the citizens of a given
place.
Procurement:
this refers to the action of buying goods, materials or services for the good
of the public.
Process:
This term refers to the procedure, the pattern, the way whereby a certain
action has to be followed to arrive at an expected result. Process here has to
do with the adopted pattern for procurement.
Public Sector:
The Economy is divided into two sectors. The Private sector and the public
sector. The public sector has its objectives targeted on the good of the
masses. The sector is not profit-oriented but service-oriented.
1.7 Organization of the Study
This study
is segmented into five chapters. This is to enhance comprehension, crate
symphony in writing and most importantly abide with the departmental project
guidelines. Hence, the first chapter deals with a background to the study;
stating the problem, its aims, hypotheses and significance. The second chapter
brings a review of the related and available literatures. It recognizes the
works of several scholars on the same subject and brings to light their
contributions and opinions. This chapter is divided into the conceptual,
theoretical and empirical frameworks. The third chapter reveals the methodology
adopted for this study. The method and sources of data were highlighted in this
chapter as well as the research design. The fourth chapter has to do with the
presentation and interpretation of data. This is scientific because our claims
have to be backed up by verified facts. The fifth chapter gives us the summary
of the entire work in few sentences, draws the conclusion for the study and
gives recommendations if any.
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