Friday, March 17, 2017

Kemi Adeosun Removed as Chairman of Public Procurement Council

Nigeria's Finance Minister, Kemi Adeosun has been removed from her position as chairman of the National Council on Public Procurement.

This is as a result of the alteration made to the Public Procurement Act, 2007, passed by the House of Representatives.


A major amendment of the Bill was the removal of Minister of Finance as Chairman of the National Council on Public Procurement. The Minister will now be replaced with a person to be appointed by the President.

Section 35 (1) of the bill increased mobilisation fee to contractors or suppliers from 15 to not more than 50 percent or more as may be prescribed by the Bureau, while section 35(3) prescribes 2 years jail term as punishment for “any person or authority who accesses mobilisation fee and absconds or does not carry out the services or works commensurate to the fee paid shall be guilty of an offence and punishable with 2 years imprisonment or a fine equivalent to the fee paid or both.”

Section 25(3) of the law shortens the time provided in the bill for emergency procurement activity to ensure timely execution but “the procurement entity acting with respect to paragraph (i) of this section shall notify the Bureau within 7 days of such action.”

Similarly, the new law provides for the establishment of Parastatal Tenders Board in each Federal ministry, extra-ministerial department and all agencies of government, and includes the National Defense and National Security Agencies which hitherto were excluded from the procurement processes.

In an effort to increase public access to procurement activities, the House bill introduced a new section 5 (f) which mandates the Bureau to “publish the details of all contracts in the procurement journal, any other national newspapers and in their official website; while subsection (h) states that the Bureau shall maintain a national database of the particulars, classification, and categorisation of federal contractors, suppliers, consultants and service providers.”


PM News

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