Crude-oil-barrelsNigeria may have lost an estimated $39 billion to corruption in contracts procurement in various sectors, particularly the oil and gas sector, Public Procurement Development Center (PPDC) hinted at the weekend.

PPDC’s Chief Executive Officer, Seember Nyager said this at a workshop on contracts monitoring and reporting for journalists in Lagos at the weekend.

According to Nyager, “the Country Procurement Assessment conducted in 1999/2000 revealed that before 1999 Nigeria, which got independence in 1960 lost $10 billion every year to corruption by award of contracts.

She stressed further that the “principles of procurement, which these contracts lacked are the principle of basic value for money; equal treatment/non-discrimination; accountability and ethical standards; fairness and transparency.

“This is what led to the enactment of Procurement Bill, which is for public institutions in 2007.

“Uptill today, we have too many federal Agencies and departments and as at the last count the public procurement development centre discovered that we have over 180 Agencies that have overlapping functions and as we all know, part of their functions is to award contracts.

“We agree with the Oransanye’s report that some of these agencies could be merged.”

The Presidential Committee on the Rationalisation and Restructuring of Federal Government Parastatals, Commissions and Agencies headed by Stephen Oronsaye had earlier advised the federal government to scrap and/or merge many of its agencies with overlapping functions.


Information from Daily Independent was used in this report.