Page 112 - Procurement guidelines for smart sustainable cities - A U4SSC deliverable

Summary

The importance of public procurement can be perceived through the opening up of cities, the
provision of critical infrastructure, leading to the improvement of the quality of life of the citizens.
The adoption of e-Procurement is gaining global acceptability, and Nigeria has taken steps to
modernize its public procurement system by disseminating the federal e-procurement platform.
The introduction of e-Procurement came at an interesting period for the nation when the need
for improved fiscal discipline was vital. If the country is to achieve transparency and efficiency,
e-procurement is an inevitable option.

The problem

Over the years, the Nigerian Government procedure has been carried out manually by the process
of inviting contractors to bid for projects, the selection of successful bidders and then finally project
completion. In this procurement procedure, purchase order is not being processed in a timely
fashion and delivery dates are not being met. The failure is traced to poor procurement systems,
and the resultant effect is that Nigeria and Nigerians have had to suffer this defect for a long time.

The following highlights the overall problems with the traditional system of procurement in Nigeria:

• Absence of economic cost/benefit analysis of projects as a way of justifying the need for the
project.

• Projects are not prioritized and harmonized.

• Lack of completion and transparency in project procurement leading to high cost of projects.
• Unjustifiable gap existed between budget and actual release leading to underfunding, delayed
completion, price escalation and project abandonment.

• Absence of efficient and effective project monitoring.

• Frequency government policy reversal.

The approach

e-Procurement is the business-to-government purchase and sale of supplies, work and services
through the Internet, as well as other information and networking systems. e-Procurement tools and
technologies used by construction stakeholders to announce or notify, exchange project information,
conduct tendering and submission of a proposal, notification on the award of contract, monitor
the progress of work and make and receive payment for work done in the public procurement
sector. e-Procurement technologies can be used to eradicate corrupt behaviour and tendencies.
e-Procurement systems are needed to improve the environment for doing business and minimize
wastage. It offers appropriate solutions to the issues of transparency and accountability in public
expenditure. (International Journal of Construction Management)

98 Procurement guidelines for smart sustainable cities | May 2023