How BPP Saved Nigeria N1.9 Trillion in 15 Years – DG

By Gloria Ikibah

The Bureau of Public Procurement (BPP) has revealed that it saved Nigeria a total of N1.9 trillion by reviewing procurement processes and verifying contract sums from 2009 to 2023.

The Director-General, Dr. Adebowale Adedokun, stated during a budget defense session with the House of Representatives Committee on Public Procurement on Monday in Abuja.

He said: “Mr. Chairman, the Bureau’s Price Intelligence mechanism has generated significant savings to the federal government. The prior review of procurements and the verification of contract sums and approach, has resulted in cumulative savings of over N1.9trillion , and this has prevented funds from being diverted into personal pockets.

“This process also helps to reduce excessive projects costs and release more funds for other development investments”.

According to the BPP Boss these include in 2009 N46.519bn, 2010 N216.690bn, 2011:NN77.652bn, 2012:N124.113bn, 2013: N95.797bn, 2014: N127.368bn and 2015:

N49.519bn.

The rest are 2016: N32.398bn, 2017:N78.977bn, 2018:N170.485bn, 2019: N49.142bn, 2020:N172.676bn, 2021:N146.961bn, 2022:N365.568bn and 2023: N146.410bn totalling N1,900,282,844,421.28 trillion.

He said that beyond the direct savings, the bureau’s compliance mechanisms have also played a role in boosting revenue by ensuring bidders are up-to-date on their tax, pension, and social security payments before participating in any procurement process.

However, the Director-General expressed concern over the budgetary ceiling imposed on the agency, which he feared could undermine this and other strategies designed to enhance the system.

During the budget planning process, the Bureau requested N72,775,250,713, but the Budget Office allocated only N3,283,021,838, excluding the Personnel budget of N649,558,451.59.

Regarding the 2024 budget performance, he noted that N2,234,785,641 was allocated, with N2,110,061,164 utilized. However, the capital allocation of N289,418,688 was insufficient to achieve significant reforms or address the core mandates needed for effective contract administration. So far, only N184,024,690 of the capital expenditure allocation has been released.

For the 2025 budget, Adedokun highlighted the agency’s focus on addressing office accommodation needs, improving project monitoring and evaluation across the country, implementing an electronic procurement system, and enhancing capacity building.

While thanking the Committee for its continued support, he appealed for additional funding to help the Bureau meet its objectives.

“We also realise that we need to also intensify our audit exercise. It is better to prevent than to prosecute. Under our watch our strategy is to ensure we prevent misuse of funds through real time IT tools in procurement audit.

“We want to go digital in terms of our workflow, which means even if DG is not on seat, certification can be done anywhere in the country. We also provided for an upgrade of our national database of contractors and service providers.

“Under the 2025 budget, it would no longer be business as usual. We will be categorizing contractors meaning that contractors of equal competence must bid for projects within their funding capacity.

“I want to assure you that we have the capacity to transform the procurement space within the shortest possible time. We will do more if empowered financially.

“If we use procurement as a tool for good governance, it would reduce corruption and poverty and increase employment and industry if this appeal is given due consideration.

“BPP has the capacity to contribute significantly to the GDP of the country through the innovations we are bringing on board”, he stated.

Adedokun said the various achievements by the Agency over the years has been with very limited funding.

He said under his administration the Bureau is committed to making the contracting process even more efficient, transparent and competitive for foreign and local contractors.

Chairman of the Committee, Unyime Idem, said they were mindful of the ceiling imposed on the agency and would do something about that.

“I want to assure you that what you have seen before us the proposal, so we would engage the committee in charge of appropriation to ensure that those inadequacies in terms of funding are addressed,” he added.

Idem also said the BPP remains a vital institution for the ability of any government to achieve good governance and deliver the dividends of democracy.

He said if the BPP improves its productivity in playing its full role, it will improve the quality of governance, procurement and project management.

“However, how can the above be achieved without an empowered BPP? I have looked at the data with respect to the allocation to the BPP in 2024, which indicates that it was allocated N2,234,785,641 and N2,110,061,164 was released under the 2024 budget.

“Under the budget proposal before the National Assembly, the Budget Office of the Federation and the Ministry of Budget and National Planning allocated to the BPP a maximum ceiling of N3,383,021,838, excluding personnel cost. This is notwithstanding the impact of inflation between January 2024 and January 2025″.