FG Procurement Projects Gulp N2.9tn in One Year – BPP
The Bureau of Public Procurement issued 395 ‘No Objection’ certificates to various Ministries, Departments, and Agencies in the 2023 fiscal year, approving projects worth over N2.94tn.
This was contained in the agency’s annual report, which detailed the government’s commitment to transparency, efficiency, and accountability in public procurement.
The report stated that BPP’s intervention saved the Federal Government an estimated N58.65bn (approximately $56.2m or €322,667) through cost reductions on reviewed contracts.
It read in part, “The bureau issued 395 certificates of ‘No Objection’ to MDAs. The office attended eight bid openings from 12 invitations, which were observed and recorded total compliance with the Public Procurement Act, 2007. Also, no defective advertisement was placed by the MDAs. This is also due to the proactive steps taken by the bureau, as 592 draft advertisements were by the Bureau.
“It will be noted however, that the bureau made a total savings of N58,652,848,617.56 / €322,666.63 / $56,200,653.82 from various MDAs BPP reviewed project cost from January to December 2023.”
In Nigeria’s public procurement framework, a ‘No Objection Certificate’ is an official endorsement issued by the BPP to a procuring entity, confirming that all legal and procedural requirements under the Public Procurement Act 2007 have been met.
It serves as proof that due process has been followed, allowing a procuring entity to proceed with awarding contracts or making payments from the Treasury. Without this certification, no MDA can legally execute a contract, ensuring government funds are prudently utilised and procurement fraud is minimised.
The Public Procurement Act 2007, which governs the issuance of these certificates, mandates strict oversight of high-value contracts. The Act stipulates that procurement must be based on approved plans supported by budgetary appropriations, ensuring that no project proceeds without adequate funding.
It also enforces open competitive bidding and empowers the BPP to audit and monitor procurement activities across MDAs. The 395 ‘No Objection’ Certificates issued covered projects spanning infrastructure, defence, transportation, power, agriculture, and education.
Among the approvals is a contract awarded by the Federal Ministry of Education for the purchase of 13 ambulances equipped with emergency medical facilities for selected Federal Unity Colleges. The contract, handled by Mujaf Automobile Nigeria Limited, is valued at N628.09m. The project is being funded under the 2023 budget, which earmarked N657m for the procurement of ambulances for 24 Federal Unity Colleges.
Similarly, the Nigeria Police Force secured approval for capital appropriation projects worth N24.29bn. The projects, executed by various contractors, are covered under the 2023 Appropriation Act, which provides over N833bn for police infrastructure and operational needs.
The Nigerian Ports Authority received approval for a contract renewal concerning the management of tugs, pilot cutters, and mooring launches within the Apapa and Tin Can Island Port Complex. The contract, valued at N12.79bn, was awarded to L.T.T. Coastal and Marine Services Limited, with the reviewed cost standing at N12.44bn after a cost reduction of N345.74m. The funding for the project is drawn from the ministry’s approved operating expenses budget, with N20.03bn allocated in 2022 and N14.54bn in 2023.
Also, the Economic and Financial Crimes Commission secured a contract worth N3.49bn for the development of infrastructure at its new academy in Abuja. The project, awarded to Julius Berger Nigeria Plc, was reviewed and certified at N3.37bn, resulting in a cost-saving of N113.62m. Funding for the project was appropriated under the 2022 and 2023 fiscal budgets, with N2bn and N3bn earmarked, respectively.
Several other MDAs were listed as beneficiaries of the fund during the review period. These approvals signal continued investment in key infrastructure projects, security enhancements, and administrative facilities, ensuring the government’s objectives of improved service delivery and operational efficiency.
The total value of all approved projects exceeded N2.94n, as it also included $806.48m and €4.47m, while BPP’s intervention saved the government over N58.65bn through cost reductions.
The BPP is responsible for overseeing government procurement, ensuring that public funds are utilised prudently, and preventing inflated contract costs.
By certifying projects before contract awards, the agency ensures compliance with procurement laws, competitive bidding, and adherence to budgetary allocations.
