Procurement Risk:
Critical
Score:
8/100
Government Policy
Q57
0/100
Does the country have legislation covering defence and security procurement with clauses specific to corruption risks, and are any items exempt from these laws?
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This indicator is not assigned a score in the GDI. Nigeria has a Public Procurement Act (PPA) which governs all procurements by public entities.…
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The Public Procurement Act of 2007 expressly excludes the defence sector and is subject to the president’s discretion (1). In practice, this suggests that…
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The case of the NIA Director and the IKOYI money suggests that there are regular exceptions to the procurement requirements in legislation and that…
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Q58
0/100
Is the defence procurement cycle process, from assessment of needs, through contract implementation and sign-off, all the way to asset disposal, disclosed to the public?
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The defence procurement cycle is not formalised or disclosed to the public. Occasionally, there may be some limited disclosure for what is considered ‘non-sensitive’…
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The defence procurement cycle is not formalised or disclosed to the public. Occasionally, there may be some limited disclosure for what is considered ‘non-sensitive’…
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The defence procurement cycle is not formalised or disclosed to the public. Occasionally, there may be some limited disclosure for what is considered ‘non-sensitive’…
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Q59
8/100
Are defence procurement oversight mechanisms in place and are these oversight mechanisms active and transparent?
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The National Security Strategy makes some reference to procurement. However, there is no legal or regulatory framework which encompasses the numerous security agencies and…
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There is some evidence of increased oversight activity; however, there has been no change to the ambiguity over the abridged procurement processes which deviate…
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There is some evidence of increased oversight activity. The publication of the CADEP report does suggest more activity (1). The oversight of the Defence…
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There is no forward planning as far as potential defence expenditure is concerned. The priorities shift from year to year. What is clear is…
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Recurrent expenditure may be subject to planned purchases as these appear in the budget from year to year. However, capital expenditures in the defence…
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Major and significant defence purchases are sometimes reported in the media. The aggregate spend might also be reported. However, there are significant gaps in…
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Data concerning defence spending is rarely in the public domain. Subjects such as technical specifications and price issues are largely undisclosed; neither is any…
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Capability Gap and Requirements Definition
Q62
0/100
What procedures and standards are companies required to have – such as compliance programmes and business conduct programmes – in order to be able to bid for work for the Ministry of Defence or armed forces?
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Given that the process is shrouded in secrecy and that the PPA 2007 does not apply, there are no laws or procedures disclosed to…
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Because there are no policies for compliance of contracts, this indicator is marked Not Applicable. Details of expenditures of the Nigerian Defence Budgets are…
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Q63
17/100
Are procurement requirements derived from a national defence and security strategy, and are procurement decisions well-audited? Are defence purchases based on clearly identified and quantified requirements?
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The procurement requirements are difficult to assess as they are subject to considerable secrecy. The National Audit Office has the responsibility to audit the…
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In theory, scrutiny is conducted by the National Audit Office. However, the reports are subject to considerable delay and not accessible to the public.…
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The connection between certain purchases and the national strategy is not always clear. Some purchases appear to be reactions to security crises and not…
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Tender Solicitation, Assessment and Contract Award
Q64
0/100
Is defence procurement generally conducted as open competition or is there a significant element of single-sourcing (that is, without competition)?
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Q65
13/100
Are tender boards subject to regulations and codes of conduct and are their decisions subject to independent audit to ensure due process and fairness?
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While conflict rules do exist as a part of departmental guidelines, adherence to the rules is difficult to determine as senior military officials have…
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Depending on the threshold, the Bureau of Public Procurement may need to give a certificate of “no objection” which ought to be an independent…
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“At present, high-ranking politicians are able to influence the outcome of the procurement process by putting undue pressure on civil servants who feel unable…
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Oversight agencies such as the Auditor General’s Office have limited powers to request documents and interview defence personnel. Furthermore, the auditor general’s most recent…
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Q66
33/100
Does the country have legislation in place to discourage and punish collusion between bidders for defence and security contracts?
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The PPA 2007 S.15 expressly excludes the defence sector from its ambit subject to presidential discretion (1). Sources confirmed that Tender Boards are subject…
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The Procurement Act expressly excludes the defence sector from its ambit subject to presidential discretion. In discussions with a source at the MOD it…
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Based on the investigation and prosecution of former defence chiefs following the Buhari administration’s creation of a Panel to investigate the defence sector, it…
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This indicator has not been assigned a score due to insufficient information or evidence.
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Contract Delivery and In-Service Support
Q67
13/100
Are there mechanisms and procedures that ensure that contractors meet their obligations on reporting and delivery?
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Although the PPA 2007 outlines clear policies and procedures on how to monitor, assess, and report on suppliers’ service given that the application of…
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There may be specifications in the contract which should be used to measure or maintain scrutiny. However, the information available suggests that there is…
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IIt was certainly the case that procurement officers were only formally involved in the procurement process to approve certain transactions irrespective of the quality…
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Before 2016 it appears that very few breaches of contract were acted upon at all. “The U.S. effort to sell weapons to the Nigerian…
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Q68
17/100
Are there mechanisms in place to allow companies to complain about perceived malpractice in procurement, and are companies protected from discrimination when they use these mechanisms?
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Given that the complaints mechanism under the PPA 2007 does not apply to the defence sector it would appear that there is no formal…
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Although a structured complaints procedure is included under the PPA 2007 to the courts, it is rarely used as litigation is costly and may…
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The dispute resolution system is not being used for a variety of reasons. Fear of retaliation in the form of the loss of future…
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This indicator has not been assigned a score due to insufficient information or evidence. The PPA 2007, contains numerous procurement-related offences that contain sanctions…
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Following the Buhari administration’s ascension in 2015, several high-profile investigations were conducted into military procurement. Several high-ranking officials are currently on trial for a…
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As the criminal trials are still on-going and have not been concluded, no sanctions have been imposed at this point. In the cases which…
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Offset Contracts
Q70
0/100
When negotiating offset contracts, does the government specifically address corruption risk by imposing anti-corruption due diligence on contractors and third parties?
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Given that the PPA 2007 does not apply to special goods and services such as weapons acquisitions, details of offset arrangements are difficult to…
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Given that the PPA 2007 does not apply to special goods and services such as weapons acquisitions, details of offset arrangements are difficult to…
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Offset conditions are considered particularly sensitive and receive an additional layer of protection from scrutiny because of their politically sensitive nature (1). Further, off-set…
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Offset conditions are considered particularly sensitive and receive an additional layer of protection from scrutiny because of their politically sensitive nature (1). Further, off-set…
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The government does not generally make any details about off-set agreements public. They are considered particularly sensitive and as a result, are shielded from…
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Enforcement is difficult to assess, as they are considered highly sensitive (1). Although investigations are taking place concerning the high-profile generals accused of fraud,…
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Offset contracts are secretive and not openly discussed in the media. Off-set agreements may be discussed where there is some particular benefit such as…
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Agents / Brokers
Q73
0/100
How strongly does the government control the company’s use of agents and intermediaries in the procurement cycle?
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There are no public policies on the use of agents. The government is often reluctant to acknowledge the use of such intermediaries. In discussions…
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The FGN rarely acknowledges the official use of intermediaries. The high cost of the Tucano purchase was “most likely through intermediaries in which case…
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Financing Package
Q74
0/100
Are the principal aspects of the financing package surrounding major arms deals, (such as payment timelines, interest rates, commercial loans or export credit agreements) made publicly available prior to the signing of contracts?
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Details of defence procurement transactions are not made public. In discussions with a source, details were described as “highly confidential” and unlikely to be…
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Seller Influence
Q75
NS/100
How common is it for defence acquisition decisions to be based on political influence by selling nations?
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This indicator is not assigned a score in the GDI.
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This indicator is not assigned a score in the GDI. The government often justifies acquisitions based on military need. The asymmetrical nature of the…
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This indicator is not assigned a score in the GDI. A recent example of this is the insurgency in the North East, which continues…
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