Introduction
In view of the rapid nature of the spread and severity of cases, many countries including Nigeria adopted several forms of trade and travel restrictions to curb the COVID- 19 pandemic. The above restrictions resulted in the closure of most Ministries, Department and Agencies and the suspension/disruption of certain public procurement processes in Abuja, Lagos, and other states. E-procurement is not novel and was introduced five decades ago as electronic data exchange and only got better with the development of e-procurement software. Despite its deployment across the globe, the Nigerian public procurement sphere appears to be unenthusiastic in this regard.
The Need for Electronic Procurement in Nigeria
The term ‘e-procurement’ has been defined by SIGMA to mean a catch-all term for the replacement of paper-based procedures with information technology-based communications and processing throughout the procurement process. The end goal is to promote efficiency and effectiveness of the procurement process and e-procurement can be deployed at the different stages of the procurement process.
E-Procurement is not defined or expressly mentioned in the Public Procurement Act 2007 which is the extant public procurement legislation at the federal level, however it can be inferred by a combined reading of sections 2 (e) & (f) and section 5 (r)of the Public Procurement Act 2007. While Section 2 (e) of the Act allows the National Council on Public Procurement to approve changes in the procurement process to adapt to improvements in modern technology, Section 5 (r) of the Act allows the Bureau to introduce, develop, update, and maintain related database and technology.
Despite the above provisions, the public procurement process in Nigeria is still time consuming, leaves lots of paper trails and the level of transparency leaves much to be desired with an ineffective record keeping culture. From the above provisions, it appears that the Bureau of Public Procurement and the National Council on Public Procurement are jointly responsible for the passage and implementation of e-procurement regulations in Nigeria. At the moment, the National Council on Public Procurement is yet to be constituted and this may be contributing to the delay in the implementation of Section 2 (e) cited above.
However, it can be argued that in the absence of National Council on Public Procurement, the Bureau can utilise the provisions on section 5 (r) of the Act to initiate and enforce the use of the e-procurement system by the Procuring Entities. To ensure a seamless deployment and use of e-procurement system, the Bureau can either adopt a centralised e-procurement system for procuring entities or allow select procuring entities with high volume of procurement activities to set up and use their own e-procurement system as seen in the United Kingdom.
The Bureau should in line with international best practices issue a robust e-procurement regulation for the procuring entities, and such regulation should take into cognizance the following processes/modules such as:
E-sourcing:
E-Sourcing facilitates the full life cycle of the procurement process,and enables the procuring entity to connect with contractors and consultants irrespective of geographical boundaries, ensures transparency, improves feedback, and reduces administrative cost.
E-tendering: with e-Tendering, procuring entities can electronically open tenders, generate the report of opening and make it available to interested parties. This module enables competitive and transparent selection of the winning bid and improved time management.
E-auctioning: this is relevant at contract stage,and allows the procuring entity to post their requirements together with the reserve price and further provide the procuring entity and bidders with visibility of bid status and allows the bidders to bid against each other.
E-ordering and web-based ERP: this tool is used by the procuring entities for the planning and organisation of procurement for supplies and services and is generally accessible by authorised employees within the procuring entity.
The above processes are not exhaustive, there are several other modules such as: the e-Registration system module, the Searching system module, the e-Procurement Plan system module, the e-Publishing/Notification system module, the e-Evaluation/e-Awarding system module, the Non-functional aspects, the Contract Management system module, the e-Catalogue system module, the Vendor Management system module, and the Business Intelligence Reporting & Dashboard system module amongst others.
It is noteworthy to mention that, although e-procurement is not a one-fix solution to the challenges bedevilling the extant public procurement process, its advantages far outweigh its demerits. A case in point is section 42 of the Public procurement Act which states that a procuring entity may carry out emergency procurement where the country is threatened by disaster etc. In such situation, e-procurement is arguably the best option as it will save time and cost involved in traditional procurement. The e-procurement system when deployed will by implication eliminate the need for restricted tendering, request for quotation and other types of direct procurement. The use of e-procurement will also place Nigeria in the list of countries practicing ‘green procurement which entails any procurement that cause minimal adverse environmental impacts and ensures that high regards for human health and environmental concerns are taken into consideration in the search for high quality products and service.
Despite the outlined benefits of e-procurement, its implementation might be hampered by personnel capacity, paucity of funds, societal challenges such as lack of electricity, poor network infrastructure, computer illiteracy and indifference to change among policy makers.
Conclusion
E-procurement where appropriately deployed can be quite advantageous as it reduces administrative costs of procuring entities procurements and greatly improve their record keeping system.
Having examined the provisions of the Public Procurement Act, 2007, it is crystal clear that E-procurement is feasible in Nigeria and can be implemented, however it is advised that the Bureau should opt for a centralised e-procurement system to avoid misconceptions/uncertainties associated with using different e-Procurement systems. The above recommendation if implemented will avoid cases of uncoordinated efforts by procuring entities leading to unproductiveness and duplication of work and ensure unified collaborations to share best practices.
-Chidiebere Joshua Onyeme writes from A&E Law Partnership, Abuja, Nigeria.
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