Chris Okpoko
A story that went viral on social media last week alleged that FIFA officials were stunned after comparing two recently constructed mini-stadiums in Nigeria and Kenya, both reportedly budgeted at $1.2 million each. While the Kenyan facility—still under construction—boasts modern architecture, improved seating, and advanced design, the Nigerian version, already completed and commissioned, appears smaller, less equipped, and far less impressive. This comparison has reignited public debate over Nigeria’s public procurement system, raising fundamental questions about cost transparency, construction quality, and whether government spending truly delivers value for money.
Public procurement, the process through which governments acquire goods, services, and infrastructure, plays a pivotal role in shaping national development outcomes. In Nigeria, a country endowed with abundant resources yet burdened by inefficiency and corruption, the system has long been under scrutiny. Despite reforms such as the Public Procurement Act of 2007, Nigeria continues to grapple with inflated contract costs and substandard project delivery. According to the African Journal of Politics and Administrative Studies (Vol. 9, No. 1, March 2016), the high cost of executing public contracts has been a persistent source of concern, with the trend severely undermining the country’s development agenda.
Successive governments have poured vast sums into public projects, yet progress toward sustainable development remains slow. The outcome is a widening gap between government spending and the actual quality of infrastructure and services delivered. Studies and official records reveal that construction and procurement contracts in Nigeria cost 20–30 percent more than comparable projects elsewhere. Nigeria Exchange News (May 27, 2010) reported that a kilometer of road in Nigeria costs significantly more than in neighboring Ghana or Benin Republic—countries sharing similar terrain and climatic conditions. Economist Ahmed (2011) similarly observed that Nigeria pays at least three times more than most African nations for equivalent infrastructure projects. With about 65 percent of annual budgets consumed by construction and physical development, inefficiency in this sector poses a major drain on public resources.
“Value for Money” (VfM) in public procurement means optimizing resources to achieve the best possible outcomes—not merely the lowest price. It demands transparency, accountability, and competition to ensure government investments yield durable and efficient results. In Nigeria, however, inflated contracts, project delays, and poor-quality outcomes reflect deep systemic failures. The gulf between project costs and deliverables underscores the urgent need for a procurement system that aligns with international best practices.
At the heart of Nigeria’s procurement crisis lies corruption. Kickbacks, bribery, and fraudulent bidding have become entrenched, allowing politically connected contractors to win tenders regardless of competence. Such practices inflate costs and compromise quality. Regulatory weakness further fuels the problem. Although Nigeria established oversight frameworks under the Bureau of Public Procurement, enforcement is inconsistent. Many regulatory agencies lack the autonomy, resources, and expertise to ensure compliance.
Capacity gaps among procurement officials compound these challenges. Poor technical knowledge, inadequate project evaluation, and weak contract management often result in projects that fail to meet specifications or end-user needs. Security concerns, particularly in the country’s northern regions, also inflate costs and delay timelines, further eroding value for money and discouraging foreign investors.
Countries such as Singapore and Germany provide valuable lessons. Singapore emphasizes training and professionalization, equipping procurement officers with the skills to manage complex contracts. Its highly digitized procurement system minimizes corruption and ensures merit-based contract awards. Germany, on the other hand, fosters healthy competition and clear regulatory standards, giving all contractors equal opportunity to bid. The result is a culture of innovation, efficiency, and accountability—where quality, not connections, determines success.
In contrast, Nigeria’s procurement landscape remains opaque and politicized, with favoritism often overriding merit. The result is a widening gap between projected outcomes and actual project delivery, deepening public distrust in government processes. The consequences of Nigeria’s procurement inefficiencies extend beyond wasted funds. Mismanaged public spending stifles infrastructure development, disrupts service delivery, and widens socio-economic inequalities. Investor confidence is another casualty. Persistent reports of inflated contracts and project failures paint Nigeria as a high-risk investment environment, discouraging foreign direct investment. The result is fewer jobs, limited technological transfer, and stalled economic growth.
Reforming Nigeria’s public procurement system is critical for rebuilding public trust and driving national development. To achieve this, Nigeria must digitize procurement through full adoption of e-procurement systems to reduce human interference and enhance transparency. It must strengthen oversight by empowering regulatory bodies like the Bureau of Public Procurement with independence and adequate funding, professionalize the sector through continuous training for procurement officers, and encourage meritocracy, ensuring contracts are awarded based on capacity and competitiveness rather than political affiliation.
Nigeria’s public procurement system remains a paradox of potential and waste. Despite vast budgets and repeated reforms, corruption, weak oversight, and limited capacity continue to rob citizens of quality infrastructure and services. By learning from nations that have successfully embedded transparency and accountability into their procurement processes, Nigeria can reverse this trend. Ensuring true value for money in public procurement is not just about efficient spending—it is about restoring confidence, fostering development, and guaranteeing that every naira spent serves the people, not private interests.