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Fighting contract, procurement corruption in Nigeria using AI

Corruption is a destructive force that can cripple a nation’s progress if not confronted head-to-head with political will. It is widely believed among Nigerians that corruption is the primary obstacle hindering the country’s development, infiltrating nearly every aspect of the society with no apparent end in sight.

The most effective approach to combating corruption is prevention, rather than the traditional method of waiting for crimes to be committed, followed by arrest and prosecution. This conventional process is time-consuming, costly, and can even damage the economy. The first step in addressing corruption in Nigeria is to create conducive working environment that discourages public servants from engaging in corrupt practices before deploying artificial intelligence (AI) models to serve as a safeguard against corruption.

To create a conducive environment for public service, the salary and benefits structure must be reviewed comprehensively. First and foremost, the salary of public servants should be sufficient to cover their basic living expenses. A well-structured salary system should ensure that no more than 30 per cent of an employee’s income can be spent on food, leaving enough for other necessities and long-term savings. This will reduce the financial strain on public servants and minimise the temptation of engaging in corrupt practices to supplement their income.

Additionally, housing benefits should be improved to address the country’s current housing deficit. Public servants should have access to affordable housing through subsidised government programmes or hire-purchase agreements, ensuring that homeownership is achievable for all levels of public service.

Presently, housing schemes require public servants to pay N9 million depending on the category of the house with between 10 – 30 per cent down payment, which is unrealistic for someone earning N300,000 or less a month. More affordable housing solutions, such as rent-to-own programmes with reasonable repayment periods, should be implemented. This would not only address the housing deficit but also ensure public servants can secure stable living conditions without resorting to corrupt means.

Education is another essential area where policy reform is required. The government should introduce subsidies or payment assistance for the education of public servants’ children, depending on whether they attend public or private schools. This would help alleviate the burden of school fees, especially for lower-income workers.

Ensuring that public servants’ children have access to quality education, without excessive financial pressure, will boost morale and reduce financial anxiety, leading to rejection of bribes and corruption practices. Healthcare for public servants also needs significant improvement. While Nigeria offers health insurance for government employees, the healthcare infrastructure is severely underfunded and lacks modern facilities.

Upgrading hospitals with state-of-the-art medical equipment and ensuring that healthcare professionals are well-paid would reduce the need for public servants and the ruling class to seek medical treatment abroad. This investment in local healthcare would also serve as a vote of confidence in the national health system, encouraging trust and usage of domestic health services by all citizens.

As such, no need of corruption to earn ill funds for overseas medical trips. Regarding car ownership, public servants should be able to easily acquire vehicles through affordable hire-purchase schemes. Currently, owning a car remains out of reach for the majority due to unrealistic salaries and financial pressures.

By providing accessible financing options, the government can improve the quality of life for public employees, making transportation more convenient and efficient. This can also reduce the prevalence of bribes in a bid to own a car.

Lastly, the retirement benefits system needs restructuring. Retirement entitlements should be robust and efficient, with the final pension payments ready one month before an employee’s retirement. This ensures that pensions are paid promptly, starting immediately after retirement, based on the employee’s last salary.

A reliable retirement system would provide financial security and reduce the desperation that often leads to corrupt behaviour toward the end of one’s career. With these structural changes in place, the environment for public servants will discourage corruption and foster a culture of accountability, where only a few habitual offenders need to be targeted. I have had the privilege of working in two different countries, which conducive environment for public service significantly helped them eliminate corruption.  

It has been reported that over 90 per cent of corruption cases in Nigeria are committed through contracts and procurement processes. According to Pulse newspaper, the Chairman of the Economic and Financial Crimes Commission (EFCC) revealed that more than N2.9 trillion was lost to contract fraud during the administration of former President Muhammadu Buhari alone.

When combined with the losses from previous administrations, dating back to 1999, this figure grows into an enormous sum, potentially large enough to significantly transform Nigeria’s infrastructure and economy.

With such resources, the country could be rebuilt to a level that rivals major global economies, such as the United States and China. This highlights the immense impact of corruption on Nigeria’s development and the critical need for robust measures, including the use of AI, to safeguard the integrity of the procurement process.     

Fraud in the contract process often involves bribery, collusion, or the manipulation of bids. AI can help by analysing large datasets of procurement transactions, identifying patterns of irregularities, and flagging suspicious activities. It has successfully worked in many countries, for example, the Brazilian government uses AI to prevent fraud in public procurement.

The AI system known as “Alice” monitors bidding processes by examining bid patterns and supplier behaviours across multiple projects. The system compares historical bidding data and identifies discrepancies, such as unusually low bids or recurring winners, which could indicate collusion. By automating these checks, Alice helps auditors and regulatory bodies prevent and investigate potential fraud cases early, thereby minimising corruption in the contracting process.

The AI system “Alice” is explainable, meaning it can clearly articulate the decision-making process and justify its final conclusions regarding suspicious contract fraud. This transparency allows investigators to understand the reasoning behind flagged irregularities. It is recommended that the Bureau of Public Enterprises (BPE), EFCC, and Independent Corrupt Practices Commission (ICPC) collaborate to implement such an AI system with real-time monitoring terminals in all the relevant agencies. By doing so, contracts can be monitored in real-time simultaneously in different agencies, preventing fraudulent bidding and ensuring transparency throughout the procurement process.

 

By prioritising prevention and leveraging AI technology, Nigeria can address corruption at its root and build a more transparent and accountable governance system.

 

 

 

Chiroma is Asst. Professor of Artificial Intelligence, University of Hafr Al Batin, Saudi Arabia, [email protected]

 

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