Public Procurement As An
Imperative for Good Governance
& Sustainable Development:
Implementation Challenges &
Lessons
A Paper Presented At The Public Procurement Conference
2015 organised by the Edo State Public Procurement
Agency
By: Engr. Akin Onimole
General Manager/CEO
Lagos State Public Procurement Agency

Key Issues to Consider:
◦ Relationship between Public Procurement, Good
Governance & Sustainable Development
◦ Components of an Effective Public Procurement
System
◦ Implementation Strategy adopted by the Lagos
PPA
◦ Challenges & Lessons Learnt
◦ Recommendations

Public Procurement
◦ The Acquisition by any means of goods, works or
services by the Government (Edo PPA Law 2012)
◦ Acquisition is the conceptualisation, initiation,
design, development, test, contracting, production,
deployment, logistics support, modification and
disposal of weapons and other systems, supplies or
services (including construction) to satisfy the US
dept of Defence needs, intended for use in or in
support of military missions.
(US Defence Acquisition University)

•
•
•
•
Good Governance (ref: UNDP)
Governance is generally taken to mean the exercise of
economic, political and administrative power or authority to
manage a country’s resources and affairs at all levels;
The goal of governance initiatives should be to develop
capacities that are needed to realize development that
gives priority to the poor, advances women, sustains the
environment and creates needed opportunities for
employment and other livelihoods.
Good governance has become a conceptual platform of
interest on which most nations performances are judged.
It is a key part of any development strategy and it has
become widely accepted within the development policy
community in recent times
Sustainable
Development
Development
which meets the
needs of the
present without
compromising the
ability of future
generation (Agenda
Environment
Economy
Society
3 Pillars of Sustainable Development
21 of Rio Declaration,
1992)
Why Need for an
Efficient Procmt
Mgt System (PMS)
1.Earth Resources are
fast diminishing
Political
Goal
World
PMS
Social
Goal
Economic
Goal
Population by 2050 : 9
Billion
Number of ‘dead zones’ in
the oceans & coastal areas has
doubled since the 1960s due
to fertilizer run-offs (yet 70%
of world population depends
largely on sea foods)
By 2025, 2/3 of the world’s
population could face serious
water shortage problem (Less
than 1% of world’s water
available for drinking etc)
Why Need for an
Efficient Procmt
Mgt System (PMS)
2.Increasing Agitation
for Accountability &
Transparency.
Political
Goal
Major
PMS
Social
Goal
Economic
Goal
condition for
accessing foreign aid
and foreign direct
investment
Creation of EFCC and
Due Process Office
were part of the
financial reforms that
earned the Federal
Government debt
cancellation
Why Need for an
Efficient Procmt
Mgt System (PMS)
3.Public Procurement
Budget is often 60–70
% of total Government
Expenditure (savings
Political
Goal
from wastages & poor
procurement system can
help Govt achieve more)
PMS
Social
Goal
Economic
Goal
1.1 Components of Effective Public
Procurement System
Component
Description or Function
Legal
Framework
Procurement Law that clearly define
responsibilities of procuring entities, contractors
and suppliers.
Policy
Effective and consistent national policies and
standards to be followed by all procuring entities
including arbitration procedures.
Institutional
framework
A well defined structure for conducting
procurement that minimizes subjective decisions
and politicization.
Professional
Procurement
Cadre
Procuring entities staffed with well trained
procurement professional and recognized as
such under the Civil Service scheme and
regulations.
Resources
Procuring entities supported with adequate
budgets, standard documents and operational
manuals for effective service delivery.
Fraud
Preventions
Clear laws applicable to procurement officials,
contractors/ suppliers or service providers and
other relevant stakeholders who breach any part
Standard Model of Good
Procurement Practice

UNCITRAL MODEL
(United Nations Commission on
International Trade Law)
Issued in 1994 as Model Law on Procurement
of Goods, Construction & Services
Aimed at assisting National Governments
seeking to introduce or reform public
procurement legislation
Adopted by most Nations with some elements
of domestication (e.g Nigeria (BPP, Lagos, Edo)
Objectives of the UNCITRAL Model






Maximizing economy and efficiency in procurement
Fostering and encouraging participation of suppliers and
contractors in procurement proceedings
Promoting competition among suppliers and contractors
for the supply of goods, construction or services
Providing for the fair and equitable treatment of all
suppliers and contractors
Promoting the integrity, fairness and public confidence in
the procurement process and
Achieving transparency in the procedures relating to
procurement.
Implementation Strategy by
the Lagos State Public
Procurement Agency
Monday, March 21, 2016
14

Establishment of PPA in April 02, 2012 with takeoff staff deployed over time.
PPA Board
General Manager/ CEO (1)
Technical Assistant (1)
Internal Audit (2)
Budget/ Planning (1)
Confidential Secretary / Personal Assistant (1)
Internal Procurement (1)
SECRETARY/LEGAL
ADVISER (1)
Legal/Regulatory
Services (2)
Board Secretariat (1)
Central Registry/
Record (2)
DIRECTOR
PROCUREMENT (1)
Works / Technical
Infrastructure (2)
DIRECTOR
CORPORATE SERVICES (1)
DIRECTOR
MONITORING, ENFORCEMENT
& COMPLIANCE (1)
General Admin (4)
Project Monitoring (2)
Goods /
Equipment (2)
HR Management (2)
Enforcement & Compliance (4)
Consultancy
Services (2)
Media/PR (3)
Contractors’ Registration (2)
ICT/ MIS (2)
HEAD
ACCOUNTS (1)
Pay/ Accounting
Office (2)
FIS (1)
State-wide Sensitisation

Sensitization of about
5000 Stakeholders
including State EXCO
members, Accounting
Officers, Directors,
Contractors/
Consultants,
Professional Bodies and
Key Officers in LGAs
and LCDAs.

Conversion, Training
and Deployment of
Procurement Officers
to MDAs.
Selection criteria
includes: Remaining
years in service,
qualification, age and
position below GL15)
(to date there are about 240
Officers in the Procmt Cadre
Service-wide. Deployment
based on spend category of
MDA)
Capacity Building
Publications and Circulars issued to enhance
implementation of the Procurement Law.
1. Handbook on FAQs
2. Basic Guidelines for the Implementation of
Procurement Law
3. Quarterly Publication of Procurement
Journal
4. Publication of the State Tenders Journal
5. Launching of an Interactive PPA Website
(www.lagosppa.gov.ng)
6. Regular State-wide circulars for proper
information dissemination and clarifications

PPA Publications & Circulars
Other Activities





Observer at the State Tenders Board Sessions
during the Transition Period
Monthly Meetings/Seminar with the
Procurement Officers’ cadre as part of
capacity building strategy
Participated in the Setting-up of the
Procurement Planning Committees and
Ministerial / Parastatals Tenders Boards
Initiated the Annual Contractors / Consultants
Forum
Regular engagement with State EXCO & Body
of Permanent Secretaries
Challenges & Lessons Learnt
Challenges
Solutions/Lessons

Inadequate number of
experienced Procurement
Experts to occupy strategic
positions in the Agency to
support the GM

Experienced staff trained under
World Bank-assisted projects
were seconded on ad-hoc basis
to handle reviews and give
professional supports to officers

Inadequate Budget to support
the operations of the Agency
especially in hiring consultants
to offer expert/independent
opinions (where necessary) and
to train about 240 State
Procurement Officers

Technical Supports were offered
by UK-DfID through their
relevant programmes in Lagos.
However, the First Line
Budgetary Provision for the
Agency has really helped in
planning
Challenges

Deliberate Effort to frustrate
Procurement Officers through
non-provision of offices and
working tools

Issue of certification by CIPSMN

Incentives

Conversion through self-seeking
motives (e.g from Teaching
Service, Traffic wardens)
Solutions / Lessons
Continuous engagement with
relevant authorities (The fact that
the GM is not a career Civil
Servant helped to enhance his
independence
 3-year moratorium granted by
HoS/Civil Service Commission
 Sponsorship to Conferences &
trainings based on dedication to
duty
 Strict adherence to conversion
criteria and rejection of application
from some specific cadres

Recommendations for Edo PPA



Engage a qualified professional as CEO of the
Agency, if possible, a non-civil servant to ensure
independence.
If Edo State Govt plans to convert to Procmt
cadre instead of recruiting, limit conversion to
between GL 8 – 12, except if there are tested
and experienced professionals in the system
Establish a monitoring and reward system to
incentivise and shield officers from fraud and
political pressure

RECOMMENDATIONS contd

If possible, engage completely new and
experienced staff for the Agency. If not, ensure
that staff deployed are stationed there for a
minimum of 4 years to prevent high staff
turnover
Make adequate Provision for Capacity Building of
Agency staff, Procmt Officers, Board Members
and Accounting Officers. (First line charge budget
recommended). You may consider collaboration
with PPRI (Futo), Ibadan Business School etc.
CIPSMN Factor


RECOMMENDATIONS contd
 Adopt Modern Technology (e.g Use of

formularised Excel Sheet to prepare Procmt
Plans). Lagos is already introducing P2P module
on Oracle Platform.
 Factor in Sustainable Development and
Innovation Procurement into your system. (You
may need to engage a specialist Consultant for
this)
 Study your existing Procurement System and
adapt as long as its acceptable best practice
 Ensure regular engagement with Contractors &
Suppliers
Comparative Analysis of some
African Countries Procmt System
Parameters
Ghana
Public
Procurement
Liberia Public
Procurement
Tanzania
Public
Procurement
Uganda
Public
Procurement
Nigeria
Public
Procurement
Lagos State
Experience
Enactment of
Public
Procurement
Law
Enacted in
2003.
Enacted in
2008
Enacted in
2001
Enacted in
2003
Enacted in
2007
Enacted in
2011
Constitution of Yes
Board/ Council
Yes, called
Board of
Commissione
rs which
report to the
Legislative.
Yes
Yes
No
Yes
Establishment
of Regulatory
Agency
Yes with
CEO as the
Head
Yes with
Executive
Director as
the Head
Yes with
CEO as the
Head
Yes with
Executive
Director as
the Head
Yes with
DirectorGeneral as
the Head
Yes with
General
Manager
as the
Head
Organizational
Structure
Yes
Yes
Yes
Yes
Yes
Yes
References
1 . United Nations: Economic and Social Council
Paper (Page 3) – Committee of Experts on Public
Administration (Fifth Session) 27-31, March
2006.
2. Sustainable Public Procurement: A new
approach to Good Governance by A. B Adjei
(Page 2)
3. Lecture Note on Sustainable Development at
University of Turin – Alenka Burja, DG Environment,
European Commission
Monday, March 21, 2016
28
The End
Monday, March 21, 2016
29