The Federal Government has raised alarm over massive financial losses through corrupt procurement practices, revealing that Nigeria loses approximately $18 billion annually to corruption and financial crimes in public contracting.
Massive Financial Drain Exposed
Secretary to the Government of the Federation, George Akume, delivered the shocking revelation during the 2025 Mandatory Continuous Public Procurement Capacity Training Programme held in Port Harcourt. The event, themed "Strengthening Procurement Capacity for National Development," brought together procurement officers from across the country.
Speaking through his Special Technical Adviser, Olusegun Adekunle, Akume emphasized that contract and procurement fraud accounts for roughly 90% of all corruption cases in Nigeria's public sector. This staggering figure highlights the critical need for reform in how government contracts are awarded and managed.
Transparency as Anti-Corruption Tool
Akume stressed that public procurement represents one of the most powerful weapons in the fight against corruption when properly managed. "When the procurement process becomes opaque or compromised, it becomes the single biggest loophole through which public funds can be misappropriated," he warned.
The SGF emphasized that every naira lost to fraudulent contracts directly impacts national development. Each misappropriated fund represents resources taken away from essential services such as building schools, hospitals, roads, and water supply systems that citizens desperately need.
He described transparent and well-regulated procurement systems as crucial for preventing corruption and ensuring value for money in public spending. The training program aims to equip procurement officers with necessary skills and knowledge to deliver better outcomes for Nigerians.
BPP's Reform Initiatives
Meanwhile, the Director-General of the Bureau of Public Procurement (BPP), Dr. Adebowale Adedokun, outlined several measures being implemented to strengthen Nigeria's procurement framework. These include:
- Revision of procurement thresholds to reflect current economic realities
- Introduction of a comprehensive debarment policy for corrupt contractors
- Development of a National Procurement Strategy to standardize processes
Adedokun emphasized the importance of ethical conduct and professionalism in procurement operations, warning that misconduct would not be tolerated under the new regime. The BPP is taking a firm stance against practices that have previously enabled massive financial leakages.
The government's renewed focus on procurement transparency comes as Nigeria continues to grapple with development challenges exacerbated by financial mismanagement. The $18 billion annual loss represents a significant drain on resources that could otherwise be channeled toward critical infrastructure and social services.
