Title: Assessing The Effectiveness Of The 2007 Public Procurement Act Against Public Procurement Fraud In Nigeria
Authors: Julius John Achanya, PhD
Volume: 9
Issue: 6
Pages: 164-176
Publication Date: 2025/06/28
Abstract:
Public procurement in Nigeria before the enactment of the 2007 Public Procurement Act was known to be unprofessional, inefficient and ineffective; as it was based on the Treasury Circulars of 1958, which provided only guidelines on public expenditure management. This necessitated the enactment of the PPA. Regrettably, despite the existence of the Act, contract award and execution are still replete with procurement fraud. This study sought to answer the question: Why the persistence of public procurement fraud despite the existence of the Procurement Act in Nigeria? To answer this question, analysis of the study was anchored on the institutional theory and a mix research design involving cross-sectional survey - cum- exploratory interviews and documentary research design was utilized. 334 respondents were drawn out of the population of 3,101 in the key institutions (BPP, EFCC & ICPC). Also, 33 respondents were interviewed. Data were presented in a descriptive form. Results generated indicated that; non-compliance with the PPA, 2007 in the award and execution of public contracts by officials of public procuring entities and bidders is the major reason for the persistence of public procurement fraud in Nigeria. Factors responsible include awards of projects to companies using minimum deviation from In-House Estimates; manipulation of the procurement process to inflate contract costs; contract splitting so as to avoid approval thresholds, among others. The paper therefore recommends comprehensive measures to include application of econometric tools that can assist in the identification of suspicious bidding patterns, and severe sanctions to serve as deterrence, among others.