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Anti-Corruption Day: Nigeria loses over $200billion through procurement, inflating contracts

The Deputy Director, Africa Office, MacArthur Foundation, Amina Salihu, has disclosed that over $200 billion has been lost in Nigeria through procurement, inflating contracts and asset disposals that are not straightforward from 1970 to 2008.

Salihu stated this at an event to mark the 2024 International Anti-Corruption Day, tagged, “Tackling Procurement Fraud and Its Far-Reaching Consequences: A Collective Responsibility,” organized by Accountability Lab Nigeria, in partnership with the Public and Private Development Centre (PPDC) and the United Nations Office on Drugs and Crime (UNODC), and supported by John D. and Catherine T. MacArthur Foundation.

She said: “A whole lot of we hear budget padding, however you translate that we hear about constituency projects that don’t get to constituents, and having the courage to look these things in the eye and demand accountability is something we have to do”

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The Country Director of Accountability Lab, Friday Odeh, said in Nigeria, a lack of accountability in public service remains a significant challenge, leading to abuse of procurement processes and misuse of public resources and has cost Nigeria huge loss in terms of money and time.

“Currently, public procurement processes are carried out without transparency, such as unpublished procurement information, which leaves citizens in the dark about how decisions are made and deprives them of the chance to track the progress of projects,” he said.

He said that Accountability Lab has been on the forefront of championing accountability and transparency in government engagement, mobilizing for more support and corporation from local and international partners to amplify the campaign for transparency and accountability in government activities.

The UNODC Representative, Maximilian Menhard said the International anti corruption day offers a crucial opportunity to raise awareness about procurement fraud, to commit to integrity in public procurements and to agree on relevant follow up actions.

He said: “Corruption in public procurement has profoundly negative impacts on government spending, undermining market competition and impeding economic and sustainable development. It leads to governments paying inflated prices, often resulting in substandard goods and services, a lack of accountability and an erosion of public trust.”

“A procurement system lacking transparency, competition and integrity is a fertile ground for corrupt behavior and while implementing a public procurement system based on these principles can be challenging.”

Speaking, the Chief Executive Officer of PPDC, Lucy Abagi said a report carried out by PPDC, shows that accessing procurement information through Freedom of Information (FOI) requests often proves challenging, with over 56 per cent of such requests receiving no response, reflecting a significant lack of transparency in public procurement processes.

The event offered a platform for meaningful dialogue, focusing on leveraging innovative technologies, such as AI-driven open contracting and gender-responsive procurement frameworks, to enhance transparency and accountability.

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