Market News

By : Obinna Nwaoku

The Secretary to the Federal Government, George Akume, has emphasised the need for transparency and accountability in government procurement processes, warning that corruption in this area is a significant threat to Nigeria’s development.

Akume also stressed that public procurement is a powerful tool in fighting corruption and enhancing Nigeria’s reputation.

Speaking through his Special Technical Adviser, Olusegun Adekunle, at the 2025 Mandatory Continuous Public Procurement Capacity Training Programme, themed “Strengthening Procurement Capacity for National Development,” in Port Harcourt, Akume revealed that Nigeria loses an estimated $18 billion yearly to corruption and financial crimes in public procurement.

While noting that the programme aimed to equip procurement officers with necessary skills and knowledge to deliver value for money and promote good governance, he decried that contract and procurement fraud accounts for roughly 90 per cent of all corruption cases in the public sector.

Akume stressed that a transparent and well-regulated procurement system is crucial in preventing corruption and ensuring value for money. He emphasised that procurement malpractices directly steal development from Nigerians, as every naira lost to a fraudulent contract is a naira taken away from building a school, hospital, road, or water supply that citizens desperately need.

He said: “I must also remind you that public procurement is also one of the most powerful tools to fight corruption and enhance our nation’s reputation.

“We know from experience and global evidence that when the procurement process becomes opaque or compromised, it becomes the single biggest loophole through which public funds can be misappropriated.

“Alarmingly, Nigeria’s anti-corruption agencies estimate that about $18 billion is lost every year due to corruption and financial crimes in public procurement.”

Akume noted that it is estimated that the share of the ‘leakage’ in public budgets occurs during the contracting of public projects.

Meanwhile, the Director-General of the Bureau of Public Procurement (BPP), Dr Adebowale Adedokun, highlighted the agency’s efforts to strengthen the procurement framework, including the revision of procurement thresholds, the introduction of a debarment policy, and the development of a National Procurement Strategy.

He emphasised the importance of ethical conduct and professionalism in procurement, warning that misconduct would not be tolerated.