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Due Process And Public
Procurement Act, 2007 (Part 3)
It is interesting to observe that the passage of the Public
Procurement Act in 2007 marked the turning point in the attitude of
government towards transparency and accountability through public
procurement. This law gives the necessary statutory framework and
backing to the operations and application of Due Process principles
and objectives in Nigeria. Indeed, it is a compendium of a
procurement control mechanism.
As earlier highlighted, prior to the enactment of the Public
Procurement Act 2007, the implementation of Due Process was backed
by the powers conferred on the Ministry of Finance through the
Finance Act 1958. It is in the exercise of powers of the Ministry of
Finance that the Process of certification, the Federal Government
has issued the following circulars as major regulatory instrument in
the operations of Due Process. |
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1. New Policy Guidelines for
Procurement and Award of Contracts in Government Ministries/Parastatals
(circular EI5775 of 27 June, 2001).
2. Guidelines for implementation of Due Process certification of
contracts (circular Try/A4/B4/2002/OAGF/TS/026/l/168 of 5th July,
2002) and,
3. The ABC of the Contract of Due Process Policy A Manual on Public
Price Intelligence Unit (BMPIU), Abuja.
The signing into law, of the public procurement Act in 2007 brought
along with it tremendous opportunities and benefits for Nigeria.
Essentially, the enactment attracted a great lot of sympathy and
understanding from the international community, particularly
creditor Nations resulting in debt reliefs and concessions from
Donor Agencies and institutions.
In addition, the Public Procurement Act has equally encouraged good
governance through judicious application of public funds and assets
resulting in the reduction of corruption. Similarly, there is now in
place an improved system of planning and budget preparation leading
to accuracy of cost and effective implementation.
Importantly, the law has facilitated improved fiscal management
through more effective expenditure management, institutions,
processes and control mechanism.
Furthermore, there is no gain saying that the law has enhanced
transparency and accountability on the part of government. This is
particularly so, as the law listed the requirement to be followed
before contracts are to be awarded. The law equally allows for
quality job execution with the introduction of the element of
competitive bidding. Above all, the passage of the law save funds
through reduced contract cost of government in the budget process to
plan and allocate resources, account for their performance and
provide transparent and timely financial reports. The poser however,
is that, to what extend does this legal framework support
transparency and accountability in the budget process.
It is vitally important to stress that the main regulation guiding
budget planning, approval and implementation in Nigeria are:-
1. Finance (Control and Management) Act, 1958
2. The Revised Financial Regulations, 2000
3. The National Commission (NPC) Amendment Decree (Decree 71) 1993.
4. The 1999 Constitution of the Federal Republic of Nigeria.
5. The Public Procurement Act, 2007
Instructively, chapter 3 and 4 of the Revised Financial Regulations
(2000) which serves as a procurement control system specify
modalities and authorities for collection of government revenue and
disbursement of approved expenditure. While chapter 32 and 33 of the
regulation provides a comprehensive regulations and procedures
concerning local purchase of items, works and services. On the other
hand, section 148 (2) (A) of the 1999 constitution further empowers
the Federal Executive Council (FEC) to control the entire budget
formulation, implementation and monitoring process. In addition,
section 80 - 84 of the 1999 constitution of Nigeria sets out the
process for budget authorization, approval and completion of audit.
It is sufficient at this stage to say that the Revised Financial
Regulation (2000) and 1999 Constitution provide a legal framework
for budget management and implementation and monitoring.
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