House of Reps: reducing wastages through public procurement law.

A bill to amend the Chartered Institute of Purchasing and Supply Management of Nigeria Establishment Act (CIPSMN) Act 2007, currently before the House of Representatives passes all hurdles and eventually becomes law, it will among other things tighten loose ends in the nation’s procurement processes, reduce wastages in public expenditure and noticeably reduce the cost of governance.

The import of this proposal resonates with one of the requests made by the youths during the recent nationwide protest.  The protests, which were orderly and peaceful in the south, witnessed some violence and destruction of public properties in the north.

However, weeks before the protests, the Green Chamber of the National Assembly had seen the need to engage Nigerians over the bill. This move aligns with procurement practice across the globe. Hence, stakeholders said the hearing could not have come at a better time.

Many stakeholders have contended that the days when low-calibre staff are dumped in the procurement and supply chain management field or department are gone.

To them, it is no longer a field, but a profession that requires organizations or countries to nurture by equipping it, with the appropriate quality and calibre of staff, that is strong, firm, diligent, excellent, and above all conscientious.

In their views, any nation or organization that still blindfolds itself and thinks it saves money by employing just anybody, with a complete head on its shoulder or low calibre personnel is in a state of denial of reality. Consequently, that particular organization or nation will keep on facing myriads of problems resulting in either blaming procurement and supply chain systems, policies, processes, procedures or personnel.

Experts therefore maintain that procurement is made for certified procurement professionals who are versed in the intricacies of effective management of resources, which comprises management, money, method, measurement, minute, market, ministry, material, manpower and machine.

According to them, procurement and supply chain, like any other profession, requires people with human skills, technical skills, and conceptual skills – this is a fact that an objective observer can base their judgment on who is who.

budget at all levels, is being managed by professionals within the sector, and, a huge portion of funds, is utilized in the acquisition of goods, supplies, works and services through a network of procurement and supply chain departments.

According to experts, countries that still adhere to traditional ways of purchasing are hurting themselves greatly, as such practice deprives the nation and its citizens of the benefit of best practices in procurement and supply chain.

These formed the fulcrum of a public hearing in the hallowed Chamber in mid-July. During the one-day hearing,  the Chairman of the Committee on Public Procurement, Unyime Idem, in his address to members of the House, representatives of CIPSMN, representatives of various ministries, departments and agencies, procurement practitioners recalled that the  House in plenary earlier in the year, considered a bill seeking to amend the Chartered Institute of Purchasing and Supply Management of Nigeria Act 21 of 2007 to be in tandem with what obtains in the Procurement Professional Practice Across the Globe and for Related Matters (HB. 346).

Idem acknowledged that the CIPSMN amendment bill is important because of its role in economic development, particularly in purchasing and supply chain management.

According to him, CIPSMN also plays a role in developing high-standard professional skills, ability and integrity among all those engaged in procurement practice.

Emphasizing the need to amend the Act, Idem reiterated the commitment of the House of Representatives Committee on Public Procurement to uphold the legal and institutional framework for the enthronement of transparency, accountability, value for money and efficiency in the procurement of goods, supplies, works, and services within ministries, departments, agencies, and parastatals as stipulated in the Public Procurement Act, 2007.

He further emphasized that strict adherence to the law and due process compliance with the PPA 2007 is mandatory for all MDAs, to avoid legal repercussions and ensure the efficient and ethical utilization of public resources.

Among the numerous changes proposed in the CIPSMN Establishment Act 21 of 2007, is the request for a change in name from “Purchasing and Supply Management to “Procurement and Supply Chain Management’.

In the summary of his presentation for the proposed amendment to the Act, Dr Abdul Mamman, Coordinator of CIPSMN, North Central Zone, Abuja, made reference to the Chartered Institute of Purchasing and Supply, UK that had effected a change of name and now being referred to as “Chartered Institute of Procurement and Supply, UK.

According to him, in conformity with global standards, the National Board for Technical Education (NBTE) has equally changed a course of study known as “purchasing and supply management” in the polytechnics and other higher institutions in Nigeria to procurement and supply chain management.

He said, “The professional training offered by the Chartered Institute of Purchasing and Supply Management of Nigeria is aimed at crowning the capacity and capability of her graduates to, as a matter of fact, face the demand in not just procurement but rather, in supply chain management functions too, for a minimum duration of two years as a graduate from the relevant field of study and depending on one’s performance.  The proposed change in name is sought for the main purpose of engendering good procurement practices, in line with best practices elsewhere in the world.

A “purchasing and supply professional” as captured in the interpretation section of the institute’s establishment Act, means any qualified member who is, into practice or employed by any organization, ministry, corporation and engaged in purchasing, supply, procurement, stores, logistics, materials or warehouse management.

“Supply chain management” denotes the general coordination of activities that involve procurement, purchasing, stores, warehousing, logistics, materials and supply management.

Mamman further emphasized the urgent need for various amendments to the CIPSMN Act 2007, saying the “New Hope Agenda” of the current administration under President Bola Ahmed Tinubu (GCFR) can be swiftly achieved through efficient and effective management of scarce resources in the realm of good management principles and reduction in procurement related corruption which he said, have crossed a figure amounting to N2.9 trillion as revealed by the Chairman, Economic and Financial Crimes Commission (EFCC), when he appeared before the Senate of the Federal Republic of Nigeria.

Mamman therefore, appealed to Idem led-House of Representatives Committee on Public Procurement to approve the request for name change from Chartered Institute of Purchasing and Supply Management of Nigeria to ‘Chartered Institute of Procurement and Supply Chain Management of Nigeria in line with global best practices.

“Every civil servant in Nigeria engaged in procurement and supply chain functions must undergo professional training and certification offered by the Chartered Institute of Purchasing and Supply Management of Nigeria, to become a member, as required.

“The institute should be accorded the same recognition as done to other established professional institutes in Nigeria, especially, in the fields of accounting, engineering, teaching and law profession (ICAN or ANAN, COREN, TRCN and Law School) respectively, and all these are aimed at maintaining a standard of practice and in consonance with the global best practices,” Mamman appealed to the Committee.

He added that the World Bank had been at the forefront of government efforts towards reform in procurement and contract management in Nigeria.

All these, he added, were embedded in the Country Procurement Assessment Report (CPAR 2000) and presented to the Federal Government in the year 2000 with a demand to professionalize the procurement function in Nigeria and allow these professionals to practice their profession to enhance the capacity and recognition of members of the institute in the practice of procurement and supply chain management in Nigeria.

Also, Mamman objected to the Bureau of Public Procurement (BPP) presentation made on its behalf by the Director of Civil Infrastructure, Mallam Nasir Bello.

According to Mamman, if such an amendment is granted, it will create conflict in the discharge of the BBP’s duties. This is because, the Bureau of Public Procurement (BPP), cannot act as an operator and regulator of the public procurement process and neither is the Bureau of Public Procurement (BPP) established as an institute, nor has it the power to certify procurement professionals.

He queried: “Why would the BPP organise Continuous Procurement Capacity Development Training Programme (CPCDTP) for parastatals, institutions, commissions and agencies of the Federal Government when such does not amount to a professional certification?”

Mamman argued that the Bureau of Public Procurement was empowered under Part II Section 5 (k) to: “organize training and development programmes for procurement professionals” and Part II Section 5(s) to “coordinate relevant training to build institutional capacity”

“The intention of the framers of the Public Procurement Act 14 of 2007 on the above-quoted sections, is being misconstrued by the BPP, to mean a different thing. What the Bureau of Public Procurement intend to do, is to continually stand on its head and liken its actions to a situation where: the Office of Accountant General of the Federation and the Office of Auditor General of the Federation begin to train some individuals selected across MDAs for two-weeks in accounting and at the end issue ‘Certificate of Attendance’ that certifies them as ‘professional’ and post them to their respective MDAs to function as professional accountants.

“This is unacceptable and must be corrected now because the current administration is determined to put square pegs in square holes by continuing to professionalize the civil service for better and enhanced service provision.

Though the institute expressed readiness to partner with the BPP to chart a way forward for procurement in Nigeria, it regretted that the bureau has, over the years, acted both as an operator and a regulator, saying procurement function should be handled by those not certified by the institute as provided for in the CIPSMN Establishment Act 21 of 2007.

Other amendments sought by the CIPSMN are Section I(c) and Section 1(1)(f) that seek to include training of “procurement auditors” into the scope of courses already granted in the principal Act with a view, to completing the cycle of statutory mandate of the institute as regards the procurement and supply chain management profession.

Section 2(a) sought a definitive statement on the position of the President of the institute with regards to council membership as the “Chairman of Council”

Section 2(d) seeks to correct the number of NACCIMA representatives in the Council to one instead of two representatives. This error was committed in the Principal Act.

A new part was introduced to the section, which seeks to establish an academy where, those desirous of becoming members shall converge and sit for prescribed examinations set by the council, as against the current arrangement across state chapters of the institute. The academy will be subject to the supervision and control of the council.

Section 13(2) seeks an amendment to the Principal Act to expand the scope of power of the institute to accredit institutions of higher learning on courses leading to the award of higher degrees, degrees, Higher National Diplomas, Diploma in Procurement and Supply Chain Management as currently obtained in our higher institutions as this will help, to maintain the standard, whereby certified professional members of the institute shall become faculty members in any institution offering courses in this field of endeavour.

Mamman concluded: “It is regrettable that procurement functions are not assigned to qualified professionals.

However, there is a growing mindset that procurement should be an all-comers affair and this must be corrected. We, therefore, plead with the Committee on Procurement to identify any vocation requiring a specialized skill to be established as a professional body and therefore, seeking the assistance of the Committee to allow CIPSMN to breathe and approve the name change from “Purchasing and Supply Management “To “Procurement and Supply Chain Management’ in line with what obtains in global practice.”

The Bureau asked the House not to pass the bill, saying the amendment being sought would largely bring the institute in conflict with the mandate of the Bureau. Bello, the director of civil infrastructure said allowing the amendment being sought by the bill will bring the institute into conflict with the mandate of the Bureau.

“It should not be allowed to delve into functions of the Bureau about procurement and public procurement in particular. In carrying out its mandate as stipulated in Section 5 (k) of the PPA, the Bureau has several higher institutions of learning handling courses on Procurement. The institute may change its name but the scope of its mandate should remain, as it is contained in its extant law”.

He said further “Notwithstanding the foregoing, should the House be inclined towards allowing the proposed amendment (without the Bureau necessarily conceding).

He said the provision of the intended training by the Institute, especially in the area of Public Procurement, must be coordinated by the Bureau, as the regulatory Agency for Public Procurement in Nigeria.

 He said the PPA, 2007 allow the National Council on Public Procurement and the Bureau of Public Procurement as the Regulatory Authorities responsible for the monitoring and oversight of Public Procurement, harmonizing the existing Government policies and practices by regulating, setting standards and developing the Legal framework and professional capacity for Public Procurement in Nigeria; and other related matters.