Procurement Risk:
Very High
Score:
23/100
57
50/100
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 (Public Procurement Act, 2007) that serves as a…
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The legislation in Nigeria recognises the risk of corruption [1]. Article 58(4)b recognises ‘conducting or attempting to conduct procurement fraud by means of fraudulent…
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The exemptions provided in public procurement acts with reference to national deference or national security creates room for opaqueness in defence procurement process in…
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58
25/100
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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Nigeria has established regulations intended to promote transparency in defence procurement. However, full public disclosure of all details related to the procurement cycle is…
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The Public Procurement Act (2007) and the Freedom of Information Act (2011) provide exemptions with reference to National Defence. For instance, according to Section…
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The policies on public procurement are defined in the relevant laws and regulations governing procurement in Nigeria. There are formal policies and procedures in…
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59
42/100
Are defence procurement oversight mechanisms in place and are these oversight mechanisms active and transparent?
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Defence procurement oversight mechanisms in Nigeria include relevant committees of the National Assembly [1]; Bureau of Public Procurement (BPP); Auditor General’s Office; as well…
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There is some evidence that legislative control of the security sector in Nigeria has progressively improved. The standing committees of the NASS have become…
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The transparency of defence procurement oversight is severely constrained. Many aspects of the oversight process, such as the findings of the National Assembly committees…
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Potential defence purchases in Nigeria are not typically made public. However, in some instances, government is pressured to make public some potential defence procurements…
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The Nigerian government does not publish detailed plans for defence purchases in advance. The planning and budgeting process for defence procurement is generally classified,…
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Occasionally, some defence purchases in Nigeria are not made public. The details of what has been purchased, from whom, and for how much are…
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Although the budget allocation of the MOD is usually accessible in the consolidate annual budget of Nigeria, specifics of defence spending is rarely in…
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62
25/100
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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There are quite a few laws in Nigeria guiding procurement, even that of defence, though their application has usually been inconsistent at best in…
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In the Nigerian case, the level of compliance to the procedures and standards prescribed by relevant laws and institutional frameworks is very weak, plagued…
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63
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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Nigeria does have a national defence policy and various strategic documents that outline the country’s defence priorities and objectives, such as the National Defence…
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In theory, institutions responsible for oversight, such as the National Assembly, Auditor General’s Office; as well as Anticorruption agencies such as ICPC and EFCC…
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Nigeria’s defence purchases to some extents are reflective of the contemplations in its national defence strategy, although some acquisitions are opportunistic in nature. As…
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64
13/100
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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While there is no publicly available comprehensive data detailing the exact percentage of defence procurements conducted through open competition in Nigeria, it is generally…
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The prevalence of a culture of secrecy about defence and security budgets and procurements in Nigeria despite the legislature’s formal authority to oversee it…
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65
31/100
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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The MOD’s Tenders Board is under the Procurement Department. Although officials with a role in designing tender specification, or in tender board decisions, are…
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While regulatory frameworks do exist, including the Public Procurement Act (2007), its application within the defence sector is inconsistent. The Ministry of Defence (MOD)…
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Tender boards in Nigeria’s defence sector are formally guided by the Public Procurement Act (2007), which mandates the establishment of Ministerial Tenders Boards (MTBs)…
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The NASS has the authority to supervise defence procurement and spending, especially through the Public Accounts Committees [1]. However, due to political constraints, the…
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66
31/100
Does the country have legislation in place to discourage and punish collusion between bidders for defence and security contracts?
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Bureau of Public Procurement conducts public reviews and auditing to verify due process and fair and open competition. Part XI of the PPA provides…
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The laws and regulations governing public procurement in Nigeria such as the PPA empowers relevant authorities to exclude companies or individuals implicated in bribery…
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While the legal framework allows for the exclusion of corrupt entities, enforcement can be inconsistent due to factors like political interference, corruption within the…
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The Public Procurement Act 2007 empowers the Bureau of Public Procurement (BPP) to harmonizse existing government policies and practices in setting standards and developing…
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67
19/100
Are there mechanisms and procedures that ensure that contractors meet their obligations on reporting and delivery?
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Contractors are required to comply with the guidelines set out by the BPP, which include provisions for contract performance and reporting as dictated by…
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Information on contract failures and modifications post award is rarely released. Such information only becomes public when anti-corruption agencies or other institutions of the…
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Given the huge inflow of public funds to the defence sector, it is only reasonable that the processes through which these funds are expended…
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Nigeria has mechanisms and procedures in place to ensure that defence contractors meet their obligations on reporting and delivery [1]. However, the effectiveness of…
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68
50/100
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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The Public Procurement Act (2007) grants companies the right to request an administrative review if they believe there has been a violation of procurement…
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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 clear…
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Despite the legal frameworks in place, companies may still fear retaliation or being discriminated against in future contracts, especially in the defence sector where…
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Part IV, section 8 of the Public Procurement Act outlines that a bidder may have its bid or tender excluded from any particular procurement…
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The PPA 2007, contains numerous procurement-related offences that stipulates sanctions such as imprisonment upon conviction, debarment from public procurement and fines [1]. In March…
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On paper, conviction of offences should result in a variety of sanctions, including criminal prosecution, financial penalties, debarment, contract termination, and reputational damage. Despite…
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70
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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Nigeria’s defence budget has steadily increased since Buhari’s first term in 2015 as has the total national budget. This has enabled expansive defence acquisitions…
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The Public Procurement Act (2007) does not explicitly regulate offset contracts, especially in the defence sector. Instead, such arrangements are often treated as national…
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General information about major defence procurements—and their stated purpose—is occasionally disclosed through media statements or government press releases (for example, regarding UAV purchases or…
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Even though the Bureau of Public Procurement (BPP) oversees general contract compliance, there is no evidence that offset agreements in defence are subjected to…
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There is no evidence that offset contracts in Nigeria’s defence sector are systematically enforced or sanctioned for non-compliance. While the Office of the Auditor…
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Offset contracts are excessively secretive arrangement in the defence procurement realm. As such, it is hardly made public. However, government officials can mention ongoing…
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73
0/100
How strongly does the government control the company’s use of agents and intermediaries in the procurement cycle?
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Nigeria has historically relied on intermediaries in defence procurement, with several high-profile cases highlighting the associated risks of corruption and mismanagement. One such case…
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There is no evidence that sanctions have been applied for violations of the directive banning intermediaries in defence procurement [2]. For example, when the…
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74
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 in Nigeria is often cloaked in secrecy and rarely made public [1]. Even when such procurement transactions are reported…
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75
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. Western sanctions on Russia and Belarus, Chinese arms suppliers are actively working to displace…
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This indicator is not assigned a score in the GDI. Nigeria in recent times has witnessed an unprecedented level of insecurity such as terrorism,…
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Amidst escalating insecurity, President Bola Tinubu has repeatedly pledged to use his constitutional powers to continue to equip, arm and empower the Nigerian military.…
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0
NA/100
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Government Policy
Q57
NA/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?
View Question
Q58
NA/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?
View Question
Q59
NA/100
Are defence procurement oversight mechanisms in place and are these oversight mechanisms active and transparent?
View QuestionCapability Gap and Requirements Definition
Q62
NA/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?
View Question
Q63
NA/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?
View QuestionTender Solicitation, Assessment and Contract Award
Q64
NA/100
Is defence procurement generally conducted as open competition or is there a significant element of single-sourcing (that is, without competition)?
View Question
Q65
NA/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?
View Question
Q66
NA/100
Does the country have legislation in place to discourage and punish collusion between bidders for defence and security contracts?
View QuestionContract Delivery and In-Service Support
Q67
NA/100
Are there mechanisms and procedures that ensure that contractors meet their obligations on reporting and delivery?
View Question
Q68
NA/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?
View QuestionOffset Contracts
Q70
NA/100
When negotiating offset contracts, does the government specifically address corruption risk by imposing anti-corruption due diligence on contractors and third parties?
View QuestionAgents / Brokers
Q73
NA/100
How strongly does the government control the company’s use of agents and intermediaries in the procurement cycle?
View QuestionFinancing Package
Q74
NA/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?
View QuestionSeller Influence
Q75
NA/100