Sustainability Practice in Public Procurement in Nigeria

Sustainable development, according to UNDP, is the balancing of the fulfillment of human needs with the protection of the natural environment, so that these needs can be met not only in the present, but in the indefinite future. Sustainable development therefore does not focus solely on environmental issues. More broadly, sustainable development policies encompass the four key pillars of Human, Social, Economic and Environmental sustainability.

Human sustainability seeks to maintain and improve human capital in society. Investments in the health and education systems, access to services, nutrition, knowledge and skills are all programs under the umbrella of human sustainability. It requires that a business organization views itself as  a member of society and promote business values that respect human capital. Human sustainability focuses on the importance of anyone directly or indirectly involved in the making of products, or provision of services or broader stakeholders. societies are likely to be affected positively or negatively by business practices or be impacted by practices deployed to source raw materials. Human sustainability includes the development of skills and human capacity to support sustainability of the organization, whilst promoting the wellbeing of related communities.

Social sustainability seeks to preserve social capital by investing and creating services that constitute the framework of our society.  It encapsulates a larger view of the world in relation to communities, cultures and globalization. Social sustainability prioritizes the sustenance and improvement of social quality in the context of the principles of cohesion, reciprocity, honesty and the importance of relationships amongst people. This can be promoted by shared ideas of equality and rights supported by laws, and deliberate public or corporate policy and actions that maintain social equality.

SOCIAL SUSTAINABILITY

Social sustainability can be promoted through public procurement, ensuring suitable working conditions and fair employment practices, disability access, employee welfare, combating child labor, having diverse of competitive suppliers, training opportunities and skills development, community benefits and facilitating local SME participation.

Nigeria currently lacks a single ministry or law or regulation for social impacts and risk management, with the World Bank Environmental and Social Framework (ESF) provisions affecting labor, vulnerable group protection, community health, and livelihoods being managed by various ministries, departments, and agencies such as Ministry of Women Affairs & Social Development, Department of Lands (Federal Ministry of Works and Housing), Ministry of Labor and employment etc. These MDAs often lack policies and regulatory provisions to holistically address ESF requirements.

Economic sustainability:

If social sustainability focuses on improving social equality, economic sustainability aims to improve the standard of living. For businesses, it refers to the efficient use of capital and assets to maintain company profitability over time without causing damage to social cohesion, human rights and ecological systems.

Environmental sustainability:

This focuses on improving human welfare through the protection of natural capital (e.g. land, air, water, minerals etc.). Initiatives and programs are defined environmentally sustainable when they ensure that the needs of the population are met without the risk of compromising the natural environment for future generations. As a concept and a practice, its explores how governments and businesses can achieve positive economic outputs and outcomes, without the risk of harm to the natural environment in the short, medium or long run. 

As A.B Adjei writes in his article titled Sustainable Public Procurement; A new approach to good governance.  Sustainable Public Procurement is a process whereby Public Institutions meet their needs for goods, services and works in a way that achieves value for money on a whole life basis in terms of generating benefits not only to the organization, but also to society and the economy, whilst minimising damage to the environment and in my view existing social order. This means that achieving good governance in a developing country, where public budgets account for a large percentage of government spending and GDP  is reasonably dependent on levels of sustainable public procurement that is undertaken.

The OECD (2013) stated that public procurement accounts for a substantial percentage of global spending and total GDP. They estimated that OECD member nations spend over 12% of GDP on public procurement (representing around $5.026 trillion). According to the European Commission EC (2014), public procurement makes up a substantial share of world trade flows, amounting to €10 trillion per year. Public procurement in the EU area accounts for 16% of GDP ($2.95 trillion in monetary terms). In Nigeria, 45% of total government expenditure which is N4.45 trillion (approximately $25 billion) was spent on personnel, overhead and operational costs in 2015. BudgIT estimated that over N2 trillion (equivalent of $10 billion) was to be expended on government procurement in 2015 (BudgIT, 2015). The trend is similar in most countries as governments spend a significant percentage of their national revenue through public procurement[1].

For businesses, Sustainable procurement (SP) is a process used by organizations to satisfy their needs for goods, services, works, and utilities in a way that maximizes value for money over the course of its entire life cycle, benefiting not only the organization but also the society, the economy, and the environment (Defra 2005) SP focuses on incorporating social, environmental, and economic factors into procurement decisions. SP tries to achieve a competitive, responsible and enduring approach to producing and procuring goods, works and services in a way that minimizes environmental impact, focuses on promoting human dignity, social cohesion and supports enduring improvements in human capacity[2].

Implementing public procurement sustainably, supports the attainment of the Sustainable Development goals, which has been described by the 1987 Brundtland Report of the World Commission on Environment and Development as “Development that meets the needs of the present generations without compromising the ability of future generations to meet their own needs”. In fact, Target 12.7 of the 2030 Sustainable Development Goals, dealing with Sustainable Consumption and Production highlights the need to “Promote public procurement practices that are sustainable in accordance with national policies and priorities”. Thus it is largely left to national governments and institutions to progressively promote and institutionalize sustainable public procurement.

Sustainable Public Procurement in Nigeria or the Lack of it.

Unfortunately, here at home, many procuring entities and procurement officers mainly focus their procurement strategies on the three elements of price, quality and time without consideration of sustainability. In practice, the sustainability impacts of a potential supplier’s approach are rarely evaluated in our clime. In the jurisdictions where this is a focus, it is evaluated based on quality consideration, which is often sub-divided into social, economic and environmental factors.  Thus, it is not only about responsible purchasing or being ‘green’ as we often say, but also about good business practices that focus on delivering procurement of goods, works and services economically while minimizing the environmental and social impact throughout the supply chain. Thus, it is not sustainable public procurement, if the reason for low prices is that the product is produced with forced or child labor or by persons who are made to live and die in in-human conditions and who do not earn living wages.  History and experience have shown that the cost of such practices to humanity as a whole is far greater than the benefits that low prices and increased profits can generate. As we can see in real life, it is the same if production processes, packaging materials or our purchase or consumption options result in waste materials that are not easily biodegradable. In  an environment with low waste recycling facilities like ours, this results among other things into the clogging of our water channels with numerous non-degradable materials, which ultimately enter the food chain through fishes and other marine life and result in increasing new diseases that humanity has to battle.   

One industry more than any other exemplifies the perils of lack of sustainability in procurement both in the public and private sector in Nigeria. Since the discovery of oil deposits in the Niger Delta region of Nigeria, the country has generated over $600 billion in oil proceeds, with another $400 billion purportedly misappropriated[3]. This represents approximately a total of $1 trillion in oil revenue[4]. However, the region has faced numerous negative environmental consequences, including pollution, oil spillage, salinization, alkalization, and other negative environmental imports. These have had damaging effects on the human population, including the proliferation of slums, unsanitary housing, traffic congestion, air, noise, and water pollution, solid waste, diseases, and lasting damage to the ecosystem. Gas flaring in the Niger Delta is also a significant issue, with Nigeria being the second highest gas flaring country in the world, emitting around $1.8 billion worth of gas annually, an asset that could otherwise be usefully applied. The effects of absence of important social and environmental considerations in the award of oil & gas licenses and joint venture contracts by government besides its contributions to greenhouse effects, global warming, rise in sea levels, soil erosion, flooding, and draughts, led to the agitations, militancy and social upheaval that we have witnessed in the Delta in the last two decades[5]. The Niger Delta case exemplifies the effects of uncontrolled industrialization and political let-down, representing the failure of corporate social responsibility, as well as poor governance leading to mass insurgency and a new generation who have grown up with a militant approach to engagement with the government and the oil companies. This could have been avoided by effective sustainable public procurement in the Niger Delta.

A second example may be helpful. A week or two ago, the Federal Ministry of Works was compelled to suspend its highly publicized Lagos-Calabar coastal highway project. Investigations revealed that the project was not awarded through a competitive process as mandated by law. Additionally, the government proceeded without conducting an Environmental and Social Impact Assessment (ESIA), which is a legal requirement. The Honorable Minister, Eng. David Umahi, dismissed these concerns and went ahead to alter the route alignment from the originally approved plan. Construction began and payments were made despite the lack of an ESIA, in direct violation of legal and best practice standards that mandate such assessments before project approval[6]. Recently it was discovered that the new alignment will affect if not damage submarine cables and other telecommunication infrastructure on the Okun-Ajah community axis. This has forced the halt. The question is who knows what other effects that would have been discovered had the honorable minister patiently undertaken a proper and detailed Environmental and Social Impact Assessment of this project before award? Now that this ESIA process seems to be on, after full designs for the road has been made, and construction started, will the designs incorporate other issues that may be revealed by the ESIA? There is a reason why public consultation and engagement with affected communities, businesses and interests is an essential component of an ESIA. These project raises many fundamental questions about absence of sustainable public procurement in Nigeria. Beyond the questions of how easy and without consequence public officials have ignored the ESIA law, this calls to question the capacity of the staff and leadership of the ministry of works to design and implement modern infrastructure in a sustainable manner. It calls into question the effectiveness of the supervisory role of the Bureau for Public Procurement. How did this project receive No Objection Approval without an ESIA? This calls to question not only our current procurement procedures applied in all government procurement, but also the conditions, rules and practices of BPP No objection. In this instance the entire public procurement process from conception, design, procurement planning if any really occurred, to procurement document preparation, bidding, award, No objection certification and commencement of construction failed and ignored a statute mandated process of ESIA.  It is notable that this is said by the Hon Minister to have been awarded on a restrictive basis, it is doubtful that the facts now publicly available show that this project falls within either restricted tendering in section 40 of the Public Procurement Act or Direct procurement under Section 42 of the same law. First is that  by its threshold value, size and nature this project going by BPP current guidelines should be procured by International Competitive bidding. Thus, it ought to be advertised in at least one International Publication and two National newspapers for 6 weeks.to attract global bidders. It is therefore unfathomable to think that the current contractor is the only competent contractor globally able to carry out this assignment to entitle it to direct procurement. Even if it were a national competitive bid, I can name on my fingertips over six Nigerian registered companies that will qualify to bid . It is also difficult to claim that perhaps no more than three or five global companies exist with such capacities or that as required in section 40 of the Public Procurement Act that the cost and time for evaluation of bids will be disproportionate to the value of the project, given the large budget of this project. What is important however, for our discussion today is how is it that we have a system of procurement today that completely ignores the national and global sustainability principles, even the one enshrined in our statutes? If this can happen with a project so big it can consume forty percent of our annual budget this year. Your guess is as good as mine on what happens to smaller projects, to which less and less attention is paid by the general public. Consequently, it is not enough to look at the current Government, the Minister or our brothers and sisters at the BPP and point fingers. We who are in this room who are the procurement officers or procurement specialists must examine ourselves and our roles and ask ourselves deep and pertinent questions. By the way I believe that the value of close professional relationship and friendship  is that I always have people who tell me the truth no matter how bitter. Also, it does appear to me that perhaps one of the reasons we gather annually at his national conference is to tell ourselves some home truth, and to have an opportunity to each examine our year with a view to determining what exactly we can improve in the coming year.

For our discussion this morning the examples of oil exploration contracts and licenses in the Niger Delt/across Nigeria and the Lagos-Calabar Coastal roads suffice to illustrate the state of sustainability practice in public procurement in Nigeria. The question we therefore need to answer in this session is what can we do about this state of affairs? What is possible and doable? Before we tackle this all-important question. Maybe we should first ask ourselves what can deployment of sustainable public procurement practices help us achieve?

The African Development Bank Guidance note on sustainable Public procurement attempts to answer this question. It states that SPP is a tool in establishing synergies among the pillars of Sustainable Development under the principle of good governance:

It will support credible economic feasibility analyses

(i)        Economic feasibility

•           Value for money (VfM)

•           Economic growth

•           Job creation

•           Promotion of Small and Medium Enterprises (SMEs)

•           Environmental and social integration

•           Total cost of ownership and life cycle costing, etc.

(ii) It enhances Environmental balance which means

•           Efficient use of natural resources

•           Maintaining the quality of the ecosystems (air, water and land)

•           Conservation of biodiversity

•           Reduction of the ecological footprint

•           Alternative energies, etc.

(iii)      Regarding social progress, it supports

•           Protection of human rights

•           Reduction of poverty, hunger and inequality

•           Food security

•           Decent work and living conditions

•           Health and safety

•           Gender equality, etc.

And I will add from my experience that the consultative processes involved in implementing sustainable public procurement, can be effective in preventing corruption and achieving improved project outcomes. When you subject project briefs, designs and costs to stakeholder scrutiny, stakeholders including all related professionals groups and communities, it is more difficult to smuggle through padding and inflation of contract prizes. While some will argue that sustainable public procurement processes may take more time to implement. I will say that the benefits far out way the delay if any that may result. As we can see the breath-neck speed at which our Lagos -Calabar Coastal road was moving has now come to a screeching halt, with hundreds of billions already paid to a contractor, based on a road alignment, road designs and road contract that will now surely change. This project may now suffer more delay than would have been necessary and perhaps cost much more than it should have.  A well-articulated and enforced sustainable public procurement policy could have avoided or curtailed these issues. This mistake should not have been made.

It has been argued and successfully so, that as a consequence of the size, coverage of public procurement in a developing country like Nigeria. It can and should be used to promote social advancement. This T.Y Adewummi argues can be accomplished by ensuring that employees of contractors hired by the organization have suitable working conditions, installing or constructing offices with access for the disabled, and fighting against child labor or forced labor. Another illustration he gives quoting ( Brammer & Walker, 2011, Walker 2015)  is that buying products that were produced ethically and that are fairly traded can guarantee sustainability from the sources of supply to the areas of consumption. Thus, sustainable public procurement has progressed beyond incorporating principles that protect the environment, but has led to a shift of emphasis from  quality management systems only to inquiries about ethical and sustainable production and purchasing practices. A.B Adjei in his Article Sustainable Public Procurement; A new approach to good governance argues successfully that  SPP considers the environmental, social and economic consequences of design; non-renewable material use; manufacture and production methods; logistics; service delivery; use; operation; maintenance; reuse; recycling options; disposal; and suppliers’ capabilities to address these consequences. It upholds the principles of transparency, fairness (to both the supplier and society), long term economy, and accountability (from purchaser and supplier).

Government as the biggest buyer has a lot of control over what is manufactured, and how it is manufactured. Each time a product is purchased, the buyer is effectively “electing” or “voting” for the company that has provided it. When products are purchased from companies that are ethically irresponsible, e.g. companies that exploit their workers, or companies that degrade the environment through their operations, then these companies engaged in such un-sustainable practices are being encouraged to continue[7]. The purchasing power should rather be used to support companies that produce sustainable products, e.g. recycled paper, alternative and degradable packaging materials other than plastic.

Government procurement therefore needs to consider sustainability issues as it is the only way that it can be sure to offer real value for money over a longer term without compromising environmental and social responsibilities. This would ensure that development targets are achieved through the acquisition of goods, works and services without much damage to society and the environment. Thus, it has become more important to ensure that procurement professionals and their procuring entities are acting sustainably because they are responsible for keeping track of expenditures for their organizations and for the government as a whole.

So, what do we need to do to embrace sustainable Public Procurement?

Studies have shown that achieving sustainable procurement for publicly funded projects faces various obstacles, including lack of sustainability knowledge, transparency and governance, alignment between procurement and sustainability goals, and difficulties at the national and state policy level. The public procurement sector faces challenges such as lack of compelling legislation, poor initiative in at the policy level of national and state governments in deploying administrative instruments to promote public procurement sustainability, a lack of affordable alternative green products, and general lack of knowledge and unfamiliarity with sustainable procurement. Also, there are challenges faced by the Ministries, Departments, and Agencies (MDAs) of the Federal Government of Nigeria in implementing environmentally responsible procurement policies and procedures[8].

OBSTACLES WITH SUSTAINABLE PROCUREMENT PRACTICES

Major obstacles include a lack of commitments on the part of government officials to facilitate what is required, finances and resources, understanding, knowledge and awareness of sustainable procurement practice, regulatory constraint and lack of long-term perspective on sustainable procurement practices between public and private firms. To effectively implement sustainable procurement, this public sector agencies must address these obstacles and ensure projects adhere to sustainability guidelines.[9]

Despite the huge knowledge gaps and with over 40 federal government universities  and several more state and federal tertiary institutions, Nigeria lacked a structured dedicated line of study in public procurement, environmental standards, or social standards until the SPESSE project supported by the World Bank was instituted about three years back to build a foundation for improved capacity of procurement professionals across Nigeria. Time is still required to see how this program is doing and if it will achieve its objectives. This skills gap has slowed budget implementation, led to governance loss, diminished service delivery, and hindered the attainment of developmental objectives.

Some other problems include:

• Ignorance of sustainability principles and advantages amongst political leaders .
• Lack of commitment of political leaders to sustainability principles and goals
• Poor prioritization of sustainability by government leaders- absence of purposeful leadership
• Lack of regulatory framework for sustainable  procurement
• Lack of regulatory and administrative tools that promote sustainable public procurement.
• Poor enforcement and implementation of relevant laws
• Poor regulatory oversight over public procurement
• Lack of funding to prepare and implement sustainable procurement and projects
• Separation between capital budget and operational budget
• Lack of awareness of sustainability concepts and polices amongst public servants and procurement officers.
• Poor knowledge and skills on sustainability principles and practices on the contractor side in Nigeria.
• Fewer local examples of sustainability practice; fewer developers undertake green building projects locally.
• Poor knowledge and people pressure for sustainable public procurement practices
• Resistance to change; Unwillingness to change in the country due to cultural backgrounds
• Lack of continuity in government programs and initiatives  
• Risk associated with the implementation of new practices
• Poor awareness and delay in decision-making
• Lack of sustainability measurement tools and sustainability measurement practices
• Lack of market segmentation
• Lack of local body of knowledge on sustainability procurement experience
• Perceived high cost of adopting sustainable solutions
• Failure to match project needs to procurement options
• Lack of commitment to National Development Plan
• Inadequacy of an annual budget circle that does not support multi- year project implementation.
• Corruption
• Political interference
• Non availability of sustainable materials
• Lack of confidence in local contractors
• Delays in payment of contractors

To solve these kinds of challenges is exactly why the Public Procurement Act established the BPP as a Regulator with sufficient powers to initiate and institutionalize policy, procedural and substantive practice changes in public procurement.

STEPS TO IMPROVING SUSTAINABLE PROCURMENT PRACTICES

Whilst many people may argue, and I do agree to some degree that legislative change has been used by many countries to institutionalize sustainable public procurement and might to some extent be useful for Nigeria. I will argue that the current laws, though needing some improvement, have sufficient provisions on which to ground sustainable public procurement. Thus, the immediate task going forward may not necessarily be a change in the law but regulatory and administrative actions to fully utilize existing statutory provisions that support sustainable public procurement. 

The Public Procurement Act 2007 as amended empowers procuring entities i.e. ministries, departments and extra -ministerial departments to determine conditions for qualification of contractors to bid for projects, additionally it is the procuring entities that design projects, plan and set out project features, deliverables and establish the criteria for evaluation and award of bids to contractors. Section 32 (4) of the law empowers these entities to determine and stipulate in the solicitation documents for each public procurement relevant factors in addition to price that will be considered for the purposes of evaluation of each bid , and the manner in which such factors will be applied.  This section is to be applied in accordance with regulations, guidelines and standard documents issued by the Bureau for Public Procurement pursuant to powers granted it under Section 5 &6 of the Act.  Thus, a clear sustainable procurement regulations, guideline and revised bidding documents mainstreaming sustainable procurement principles, qualification conditions and bid evaluation criteria issued by the BPP will be sufficient to immediately require procuring entities to implement sustainable procurement and to lay out the specific processes, steps, features and criteria for ensuring sustainability of public procurement. Indeed, the BPP can by regulation require procuring entities to revise their conditions for qualification of contractors in categories of procurement to include sustainability compliance certifications and similar registrations that assure that they have the skills and personnel experience to implement specific projects in a sustainable manner. This requires no new legislation and avoids the politicking and self-interest consideration of politicians that has remained an obstacle to improvements in National procurement laws. If and when BPP does this, the Federal government and insist on states benefitting from Federal grants and partnerships applying the same procedures in their procurement. Indeed, already the national Public Procurement Act applies to all projects even if state projects where at least 35% of project costs will be derived from the national budget. 

Such regulations, guidelines and standard documents will of course capture the requirements of existing laws, national policies and programs including but not limited to;

 the Environmental Impact Assessment Act 1992

• the National Environmental Standards and Regulations Enforcement Agency (NESREA) Act.
• Child Rights Law
• National Policy on Environment
• National Forest Policy
• National Water Policy (2014/2016)

The second step required of the Bureau for Public Procurement, will be to revise its Conditions and Guidelines for No Objection to ensure that it includes a robust sustainability evaluation to determine whether a project seeking for No Objection has adequately taken account of sustainability requirements and to ensure that none which does not substantially comply in this regard  is approved for implementation. Since projects requiring No objection are large substantial undertakings, this effort will immediately set the tone for large infrastructure and related government projects.

Experience indicates that if the BPP takes these steps, the various state public procurement agencies will follow suit. This has been the trend in the sector. However, this does not mean that a state procurement cannot on its own deploy and implement sustainable public procurement on its own without the example of the BPP.

LAWS AND REGULATIONS SUPPORTING SUSTAINABLE PROCUREMENT PRACTICES IN NIGERIA

1. The Public Procurement Act (PPA), 2007: The Public Procurement Act outlines clear objectives for the Bureau of Public Procurement (BPP), including harmonizing government policies, ensuring probity, transparency, and fair practices, establishing pricing standards, and achieving professionalism in procurement. However, despite these stated goals, the practical implementation of sustainable procurement practices remains a challenge in Nigeria’s public construction sector, as highlighted in the study by Oyewobi and Jimoh. The BPP, mandated to formulate policies and guidelines for public sector procurement, must bridge this gap by integrating sustainability principles into its core objectives and operational practices. This entails developing a regulatory framework for sustainable procurement, enhancing government commitment, addressing economic barriers, and fostering knowledge dissemination to align with global sustainability standards. Achieving this alignment will contribute significantly to advancing sustainable procurement practices in Nigeria’s public sector.

• The National Environmental Standards and Regulations Enforcement Agency (NESREA) Act: The Agency is tasked with safeguarding and advancing Nigeria’s environmental and natural resource interests, focusing on environmental protection, biodiversity conservation, and sustainable development. This includes collaborating with stakeholders both domestically and internationally, such as the Bureau of Public Procurement, to enforce environmental standards, regulations, and policies effectively as stated in section 2 of the Act. The Agency’s mandate encompasses environmental technology and involves coordinating with relevant parties to ensure the responsible use of Nigeria’s resources. This aims to foster a sustainable balance between development and environmental preservation, promoting long-term well-being for current and future generations.

• Environmental Impact Assessment Act 1992:  This Act, among other things, sets out the procedures and methods to enable the prior consideration of environmental impact assessment on certain public or private projects. The Act also gives specific powers to the Federal Environmental Protection Agency to facilitate environmental assessment on the projects[10].

• The Fiscal Responsibility Act 2007: The Fiscal Responsibility Commission (FRC), established under the Fiscal Responsibility Act of 2007, plays a crucial role in promoting sustainable practices in public procurement in Nigeria. This is closely tied to Section 16 of the 1999 Constitution as amended, which outlines economic objectives for the country. The FRC is tasked with ensuring transparent and accountable financial management in the government. Its mandate includes overseeing revenue-raising policies, resource allocation, and debt management to ensure they are done prudently and transparently, aligning with the law. Specifically, Section 16 of the Constitution emphasizes economic objectives aimed at ensuring that the country’s resources are harnessed and distributed efficiently for the common good. The FRC’s functions, outlined in the Act, are designed to enforce these objectives. This includes monitoring and enforcing compliance with the Act, disseminating best practices for efficient public expenditure and revenue collection, conducting fiscal studies, and making rules to carry out its functions effectively. By fulfilling these functions, the FRC contributes to sustainability in public procurement by promoting transparency, efficiency, and accountability in financial management, which are essential elements of sustainable development as outlined in Section 16 of the Constitution[11].

• The Nigerian Extractive Industries Transparency Initiative (NEITI): It is the national chapter of the global Extractive Industries Transparency Initiative (EITI) mandated by law (The NEITI Act 2007) to promote transparency and accountability in the management of Nigeria’s oil, gas and mining revenues. NEITI is actively promoting sustainable procurement practices through collaborative efforts with Environmental Rights Action (ERA). By signing a Memorandum of Understanding, NEITI emphasizes environmental justice and capacity building on control of toxic and poisonous chemicals. Through public education, policy advocacy, and dialogue with stakeholders, NEITI influences the adoption of sustainable procurement policies. Additionally, NEITI prioritizes data transparency and workforce training to ensure effective implementation. These initiatives underscore NEITI’s commitment to integrating sustainability into procurement processes and fostering resilience in extractive industries and communities[12].

• Nigerian Open Contracting Platform (NOCOPO): NOCOPO is a National Database of Contractors, Consultants, and Service Providers. It’s an integral part of Nigeria’s e-Procurement platform managed by the Bureau of Public Procurement (BPP) to foster Competition, Transparency, accountability and Efficiency. It tracks and manage contracts files of the Federal Government of Nigeria, provides access to contract details, tenders, and procurement data which in turn reduces corruption risks, and encourages fair competition among suppliers and enables stakeholders to monitor compliance with sustainability criteria and their Procurement Plans[13].

• The Lagos State Public Procurement Law 2011: The Lagos State Public Procurement Agency (the Agency) was established on the 2nd of April 2012 under the Lagos State Public procurement Law, 2011 (the Law), The objectives of the Agency are to ensure probity, accountability and transparency in Public Procurement throughout Lagos State. The Law is based on the United Nations Commission on International Trade Law (UNCITRAL) model, which is a properly regulated procurement system benchmark on international best practice[14].          

In Europe, the European Union’s Green Public Procurement Program guides member states in incorporating eco-friendly criteria into their purchasing decisions.

In North America like in San Francisco, New York and Canada, The Green Government Procurement Order is aimed at giving additional focus on supporting local economies and reducing carbon emissions.

In Japan, The Green Purchasing Network promotes the procurement of environmentally friendly products.

In South Korea, The Green Public Procurement Program focuses on eco-labeling and sustainable consumption.

The Indian Government has imbibed sustainable sourcing of goods, supporting local artisans and reducing the ecological impact of most public projects.

South Africa and Kenya also emphasize on the empowerment of marginalized communities, ethical sourcing and environmental conservation.

Australia’s Sustainable Procurement Guide encourages government agencies to consider sustainability factors such as carbon emissions and social impact in their procurement decisions.

New Zealand has emphasized sustainability in its lifecycle costing and environmental management through the procurement process.

The United Kingdom has also implemented The Green Public Procurement Policy which mandates the inclusion of green criteria in the procurement of goods and services.     

BENEFITS AND RECOMMENDATION FOR SUSTAINABLE PUBLIC PROCUREMENT

Sustainable public procurement is crucial for governments to provide sustainable development and maintain good relations with development partners. It aims to have a lasting positive impact on the economy, society, and environment by supporting businesses that produce environmentally friendly goods. This includes ensuring value for money, sustainable economic growth, reducing emissions, improving ethical behavior, improving working conditions, and promoting a fair society.

Recommendations[15]

1. Procurement staff must possess necessary qualifications and organizational awareness to effectively implement sustainability initiatives.
2. Top management support is essential for businesses to implement sustainability effectively, as it connects external knowledge to internal needs.
3. The government should implement a public sector sustainability policy that will evoke a paradigm shift to greater sustainability awareness within the public sector.
4. The various agency’s strategic plans must align with one another.
5. Incorporation of sustainability objectives into strategic and operational plans.
6. Paying regular visits to suppliers to ensure compliance with labor laws.
7. A material valuation should be carried out in order to identify the relative importance of key environmental, social and economic issues.
8. The government must genuinely commit, both time and resources, to the advancement of sustainable practices.
9. The government should implement a comprehensive skills development programme to sensitize the workforce on the importance of sustainability.
10. Sustainability teams should be created to focus on key areas and align them with public procurement.
11. Need for training procurement professionals in the implementation of sustainable practices, taking into consideration local factors and elements of society
12. Whole life cycle evaluations should be adopted in procurement decision making processes and there should be improvements in procurement processes to optimize performance.
13. It is also important that the procurement departments are independent of oversight from the finance departments.

New consideration in Sustainable Procurement Practice – “Technological”- we need to consider the impact of technology in the form of materials, innovations, or working methods that can impact the organization’s operations.

CONCLUSION

It is essential to develop sustainable procurement guidelines that will reflect the local dynamics of the country. Presently, there are no clear guidelines, procedures or mechanisms in place in Nigeria to integrate the sustainable initiatives in the procurement process despite being a member of the United Nations movement for Sustainable Development. Most institutions lack clear policy guidelines and top management commitment to sustainability implementation. However, thorough skills development and training in sustainable procurement much can be achieved.

Written By Chibuzo Ekwekwuo

 Managing Partner A&E Law Partnership

[1] https://nuc.edu.ng/wp-content/uploads/2019/05/SPESSCE-Final-TOR-for-COE-Assessment-002.pdf (accessed on the 30th of May 2024)

[2] Defra, (2005), “Securing the Future: A new Strategy”. Ch.1, 2005, p.12.

[3] Economist, (2012), “Nigeria’s oil: A desperate need for reform”. The Economist Magazine.

[4]  Embedding Sustainability in the Public Procurement Framework

of Developing Countries- An Empirical Analysis of the Lagos

State Government, Journal of Economics and Sustainable Development http://www.iiste.org

ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online)

Vol.6, No.18, 2015. Available at https://core.ac.uk/download/pdf/234647246.pdf (accessed on the 30th of May 2024)

[5]  Ibid

[6] https://leadership.ng/netizens-tackle-umahi-for-trivialising-eia-on-lagos-calabar-road-project/

[7] A.B Adjei in his Article Sustainable Public Procurement; A new approach to good governance

[8] Oyewobi, L.O.; Mohammed, I.I.; Jimoh, R.A. Achieving Sustainable Procurement Practices in the Nigerian Construction Industry: Examining Potential Barriers and Strategies. ATBU J. Environ. Technol. 2017, 10, 63–84.

[9] Aghimien, D.; Aigbavboa, C.; Ngcobo, N.; Thwala, W. Barriers of Sustainable Construction Practices in Nigeria. In Proceedings of the 13th Built Environment Conference, Durban, South Africa, 2–3 September 2019; pp. 340–348.

[10] https://leap.unep.org/en/countries/ng/national-legislation/environmental-impact-assessment-act-1992

[11]https://fiscalresponsibility.ng/?page_id=11#:~:text=The%20Fiscal%20Responsibility%20Commission%20%28FRC%29%20was%20established%20by,and%20accountable%20government%20financial%20management%20framework%20for%20Nigeria

[12] https://neiti.gov.ng/media/news/neiti-seeks-stron ger-ties-with-csos-on-environmental-justice

[13] https://nocopo.bpp.gov.ng/

[14] https://www.lagosppa.gov.ng/

[15] Embedding Sustainability in the Public Procurement Framework

of Developing Countries- An Empirical Analysis of the Lagos

State Government, Journal of Economics and Sustainable Development http://www.iiste.org

ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online)

Vol.6, No.18, 2015. Available at https://core.ac.uk/download/pdf/234647246.pdf (accessed on the 30th of May 2024)

[1] https://nuc.edu.ng/wp-content/uploads/2019/05/SPESSCE-Final-TOR-for-COE-Assessment-002.pdf (accessed on the 30th of May 2024)

[2] Defra, (2005), “Securing the Future: A new Strategy”. Ch.1, 2005, p.12.

[3] Economist, (2012), “Nigeria’s oil: A desperate need for reform”. The Economist Magazine.

[4]  Embedding Sustainability in the Public Procurement Framework

of Developing Countries- An Empirical Analysis of the Lagos

State Government, Journal of Economics and Sustainable Development http://www.iiste.org

ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online)

Vol.6, No.18, 2015. Available at https://core.ac.uk/download/pdf/234647246.pdf (accessed on the 30th of May 2024)

[5]  Ibid

[6] https://leadership.ng/netizens-tackle-umahi-for-trivialising-eia-on-lagos-calabar-road-project/

[7] A.B Adjei in his Article Sustainable Public Procurement; A new approach to good governance

[8] Oyewobi, L.O.; Mohammed, I.I.; Jimoh, R.A. Achieving Sustainable Procurement Practices in the Nigerian Construction Industry: Examining Potential Barriers and Strategies. ATBU J. Environ. Technol. 2017, 10, 63–84.

[9] Aghimien, D.; Aigbavboa, C.; Ngcobo, N.; Thwala, W. Barriers of Sustainable Construction Practices in Nigeria. In Proceedings of the 13th Built Environment Conference, Durban, South Africa, 2–3 September 2019; pp. 340–348.

[10] https://leap.unep.org/en/countries/ng/national-legislation/environmental-impact-assessment-act-1992

[11]https://fiscalresponsibility.ng/?page_id=11#:~:text=The%20Fiscal%20Responsibility%20Commission%20%28FRC%29%20was%20established%20by,and%20accountable%20government%20financial%20management%20framework%20for%20Nigeria

[12] https://neiti.gov.ng/media/news/neiti-seeks-stron ger-ties-with-csos-on-environmental-justice

[13] https://nocopo.bpp.gov.ng/

[14] https://www.lagosppa.gov.ng/

[15] Embedding Sustainability in the Public Procurement Framework

of Developing Countries- An Empirical Analysis of the Lagos

State Government, Journal of Economics and Sustainable Development http://www.iiste.org

ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online)

Vol.6, No.18, 2015. Available at https://core.ac.uk/download/pdf/234647246.pdf (accessed on the 30th of May 2024)