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Stakeholders Reject Amendment Of Public Procurement Act

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By Gloria Ikibah
Stakeholders in the public procurement sector have rejected amendment of the public procurement Act which seeks to punish contractors for unnecessarily delaying the completion, or abandoning projects awarded to them.
Director General of the Bureau for Public Procurement, Dr. Adebowale Adedokun and the immediate past Director General of the agency, Emeka Ezeh both stated this at a public hearing organised by the House of Representatives Committee on Public Procurement on Monday in Abuja.
The duo said that there was no need to amend the law to punish contractors as such provisions are always contained in the contract.
According to Adedokun, the Public Procurement Act, 2007 harmonized the existing Government policies and practices by regulating, setting standards and developing the legal framework for Public Procurement in Nigeria to give room for competition and transparency.
He said: “The intending amendment seeks to sanction contractors who delay in completion of contract within a stipulated time. This sanction globally is generally included in the conditions of contract and it is outside the intendment of the PPA.
“The Public Procurement Act does not regulate contract implementation rather the standard condition of contract and contract of agreement regulates whatever transpires after a validly awarded contract.
“In this regard, the clauses In the contract agreement prescribing sanctions for contractors as Included in the Bureau’s Standard Bidding Documents should suffice. Therefore, the proposal to incorporate contract implementation procedures into the Public Procurement Act is overbearing and will negate the intentions of its establishment.
“The Bureau, as the regulatory body and by the powers conferred on it by the Act, has issued Standard Bidding Documents and Standard Conditions of Contract, which are of global standards and have already catered penalty for erring contractors.
“The Bureau, therefore recommends that the Committee should rather help in the proper implementation and enforcement of the existing laws by ensuring that funds for contracts awarded should be provided as and when due. This is because the solution the amendment intends to provide is not a matter of law but rather of implementations, as a procuring entity who fails to release funds to a contractor for timely completion of a project, will be guilty of the contractor’s delay in completion of the project.
“In view of the above, the Bureau respectfully request the committee to reconsider the amendment and seeks for the Parliament’s support for proper implementation of the Public Procurement Act to enhance efficiency in the public Procurement space in Nigeria”.
The immediate past Director-General of BPP, Emeka Ezeh also argued that though the intention of the proposed amendment seems noble, but focuses on addressing an effect rather than the cause of an obvious challenge in our contracting environment.
He said: “I will rather advise that the challenge be seen from a holistic picture Starting from needs assessment to projects design/preparation/projects scoping through adequate budgetary provision to procurement process (selection of contractor) to contract execution( project implementation).
“The proposed amendment tends to focus on the last leg of the project delivery chain which is a contract management issue not usually covered by public procurement legislation.  However, a project can be compromised at any of the stages leading to delay in completion.
“For instance, if a need is not well articulated, the solution provided by the project could lead to the risk of abandonment or if the design was not competently done or due to time constraint detailed feasibility/engineering designs were not done, at the stage of implementation, issues of variations/augmentations could arise.
“In the same vein, if during procurement, an incompetent contractor is selected due to abuse in the application of relevant guidelines, the project is destined to be at risk of delays.
“Again, even if there were no risks up to contract award which is what the proposed amendment assumes, a project could be delayed due to nonpayment as and when due or due to new government fiscal policies that could impact on the cost of the project.
“The delays in adjusting the contract sum to align with such policies could pose a risk to the project.
“More importantly, the ill the amendment intends to cure is adequately contained as a standard provision in our standard conditions of contract. For every major project, this is part of the conditions of contract.
“Any engineer or Quantity Surveyor or Architect worth his certificate knows this as a matter of fact. Professionally, it is called “liquidated damage” —which is a penalty imposed on a contractor subject to a maximum of 5%, usually for delay in completing a part or all of a project in line with the program of work except if the delay is due to force majeure or an extension of time duly granted by the employer through the engineer”.
Chairman of the Committee, Rep. Unyime Idem said one mischief that has plagued the public procurement space in the country is the practice by contractors to delay projections unduly, intentionally, and without any fear of sanctions, and that this mischief is driven by a number of factors, including incompetence of the contractors, non – prioritization of Federal Government projects, intention to apply for price variation, bad faith, compromise, absence of patriotism, economic sabotage, corruption, among others.
He said members of the House have studied the difference in culture and approach in other jurisdictions when it comes to the issue of executing government projects, citing Egypt where contractors are required to work both day and night and all through the week as an example.
According to him, through that practice, project time is reduced by about 50 percent to 60 percent, and a project that should ordinarily take 24 months may take 12 months or less, while in Nigeria, a project that should take 12 months may take a minimum of 5 to 6 years, with the chances of such projects being abandoned standing at about 70 percent to 75 percent.
In addition, he said over 90 percent of capital projects are eventually subjected to requests for variation, which in part is driven by the issue of delay and poor project management that results in increased costs, driven by factors like inflation and devaluation.
“While a contractor may argue that inflation and devaluation may impact its costs, it is expected that each contractor must have shown enough financial capacity, which would have contributed to the award of the contract. It is therefore expected that the contractor should deploy the best project management practice by purchasing materials upfront and locking down prices, if possible.
“I must also add that this culture of project delays preceded the current problem of inflation and devaluation. Hence, it is a problem that we now must address from a legislative perspective.
“The instant problem impacts governance in Nigeria and has affected our ability to deliver the dividends of democracy to the Nigerian people. We as legislators engage with our constituents, who are at the grassroots level, and when we are confronted with the issue of delayed and/or abandoned projects, we struggle to find answers and explanations”, he added.
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Netizens Slam Lawmakers As They Sing Tinubu’s Anthem At Budget Presentation

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Netizens slam lawmakers after they were sighted singing “On Your Mandate We Shall Stand” as President Bola Ahmed Tinubu took the stage to present the 2025 national budget.

The incident, which is in a viral video clip, showed the lawmakers singing the song, which has become synonymous with Tinubu’s political supporters.

The gesture, however, has ignited outrage among Nigerians, who questioned its appropriateness in light of the country’s current economic challenges.

Many critics took to social media to express their disappointment, describing the act as insensitive and unprofessional. They argued that lawmakers should focus on addressing pressing national issues, such as a inflation, unemployment, and hardship, rather than engaging in political theatrics with Tinubu during a crucial budget session.

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“What kind of leadership did we vote for? Instead of scrutinizing the budget and ensuring accountability, they’re busy singing praises,” one commenter wrote.

Others questioned the mandate the lawmakers you were celebrating, with some accusing them of being disconnected from the realities faced by ordinary Nigerians. “What mandate are they standing on when the citizens are struggling to make ends meet?” another critic remarked.

The 2025 budget presentation, meant to outline the government’s financial plans and priorities for the year, has now been overshadowed by this controversy, with many calling for lawmakers to prioritize governance over partisan loyalty.

Read some netizens’ reactions as lawmakers sings for Tinubu during budget presentation;

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@emeka: This is really problematic 🤣🤣

@agwai: This is the reason the president don’t do well in Nigeria because the people around him feed him with lies. And praise him when things is not good. Just clapping

@abyusuf: The lawmaker’s rendition of “On Your Mandate” should serve as a wake-up call, reminding us that it’s time to take a closer look at the people we’ve elected to represent us.

@danleety: I now believe there’s serious disconnect between the lawmakers and their constituents.

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Tax Reforms: Those criticising it lack knowledge -Akpabio

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The Senate President, Godswill Akpabio, has flayed critics of President Bola Tinubu’s tax reforms as lacking an understanding of what the initiatives were truly about.

Akpabio disclosed this during his remarks at the presentation of the 2025 budget estimate by President Tinubu to a joint session of the National Assembly on Wednesday.

He said, “Your Excellency, we commend you on your groundbreaking tax reform initiative. The four tax reform bills—the Joint Revenue Board of Nigeria (Establishment) Bill, 2024; Nigeria Revenue Service (Establishment) Bill, 2024; Nigeria Tax Administration Bill, 2024; and Nigeria Tax Bill, 2024—represent a monumental shift in our fiscal landscape.

It is disheartening that those who have not taken the time to understand these bills are the loudest critics. I urge all Nigerians, especially those in public office, to engage with these vital reforms thoughtfully. This initiative marks the first comprehensive tax reform since Nigeria’s independence, presenting a transformative opportunity for rejuvenating small and medium enterprises and enhancing the livelihoods of ordinary Nigerians.

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“These reforms will not only improve Nigeria’s revenue profile but also create a more conducive and internationally competitive business environment, transforming our tax system to support sustainable development.”

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Tinubu presents N47.9trn 2025 Resurrection Budget

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Defence and insecurity , infrastructure, health and education were some of the sectors with high allocations in the N47.9tn Budget Proposal presented by President Bola Tinubu before a joint session of the National Assembly on Wednesday afternoon.

“It is with great pleasure that I lay before this distinguished joint session of the National Assembly, the 2025 Budget of the National Assembly of Nigeria titled, ‘The Resurrection Budget’ security peace, building prosperity,” Tinubu said as he concluded his 30-minute speech at 1:10pm on Wednesday.

Earlier in his presentation, the President listed some of the highlights of the budget as defence and security – N4.91tn, infrastructure – N4.06tn, health – N2.4tn, education – N3.5tn, among others.

He expressed commitment to economic renewal, thanking all Nigerians for embarking on the journey of reform and transformation in the last 18 months together.

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The President said the economy is responding to stimulus and that his government would continue to take the right steps for economic progress. “The reforms yielding results, no reversals,” he said.

Tinubu stressed that food security is non-negotiable, adding that the government is taking steps to ensure Nigerians feed and not go to bed hungry.

Tinubu said, “Our 2025 is not just another statement of projected government revenue and expenditure; it is one that calls for action.

It is disheartening that those who have not taken the time to understand these bills are the loudest critics. I urge all Nigerians, especially those in public office, to engage with these vital reforms thoughtfully. This initiative marks the first comprehensive tax reform since Nigeria’s independence, presenting a transformative opportunity for rejuvenating small and medium enterprises and enhancing the livelihoods of ordinary Nigerians.

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“These reforms will not only improve Nigeria’s revenue profile but also create a more conducive and internationally competitive business environment, transforming our tax system to support sustainable development.”

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