NRS, BPP Move to Reform Procurement System, Seek Better Value for Public Spending

• Adedeji aims to replicate tax reform success in procurement to cut waste, boost confidence in tax spending

James Emejo in Abuja

The Nigeria Revenue Service (NRS) and the Bureau of Public Procurement (BPP), yesterday strengthened their  collaboration to reform the country’s public procurement framework, with a focus on improving value for money, reducing administrative bottlenecks and strengthening the economic returns on government expenditure.

Executive Chairman of NRS, Dr. Zacch Adedeji, said the engagement with the procurement regulator would help align the ongoing review of the Public Procurement Act with the operational realities of government institutions, ensuring that reforms deliver tangible benefits to the economy.

Speaking when he hosted the Director General of BPP, Dr. Adebowale Adedokun, and their respective technical teams at the Revenue House in Abuja, Adedeji stressed the importance of making public spending more effective, noting that visible results from government expenditure could strengthen citizens’ confidence in the tax system and encourage voluntary compliance.

He said the engagement provided an opportunity for both institutions to exchange ideas on proposed amendments to the procurement law and identify practical challenges that should be addressed in the reform process.

Adedeji, who acknowledged the BPP’s support for the NRS team in navigating procurement procedures, said closer collaboration would help the revenue service avoid administrative pitfalls while ensuring that projects were executed efficiently and in accordance with the law.

He also invited the procurement regulator to consider the specific operational challenges confronting the NRS in the ongoing review of the legal framework, emphasising that the outcome should benefit public institutions across the country.

Technical team lead/Group Director, Support Services, NRS, Mr. Kunle Ogidi, while briefing the meeting, said the BPP had provided guidance and capacity-building support to the service, helping officials understand procurement requirements and manage the complexities associated with project execution.

The team lead said the engagement was particularly important as the BPP worked towards reforming the Public Procurement Act, adding that closer consultations would enable the proposed changes to accommodate the practical needs of institutions responsible for delivering public services.

He said the NRS considered the meeting an opportunity to contribute operational insights to the review process and strengthen cooperation between both agencies.

Adedeji however, stated that the connection between tax collection and public procurement was critical to building confidence in government.

According to him, citizens are more likely to appreciate their tax obligations when they can see that public funds are being deployed effectively to deliver infrastructure and other essential services.

He maintained that demonstrating the benefits of public expenditure could serve as an important incentive for taxpayers to comply with their obligations, thereby supporting revenue generation and the government’s capacity to finance development.

The NRS chairman Adedeji, reiterated the need for both agencies to sustain their partnership, stressing that efficient public spending could reinforce public confidence in government and its revenue mobilisation efforts.

He said the visible impact of expenditure was important to encouraging taxpayers to recognise the benefits of paying taxes, adding that improved collaboration between revenue collection and procurement institutions would support better economic outcomes.

In his remarks, Adedokun said the BPP was seeking a fundamental shift from a uniform procurement model to a sector-based approach that would reflect the different requirements of projects and services.

He explained that applying identical procurement criteria to dissimilar sectors could undermine efficiency, adding that construction, healthcare and other specialised activities required approaches tailored to their distinct operational demands.

The BPP director general said the proposed reforms would be supported by stronger professional capacity, technology and improved contractor classification, enabling procuring entities to identify qualified service providers and apply appropriate standards.

He called for the NRS’s support in strengthening the national database of contractors and businesses participating in public procurement, noting that broader coverage could improve transparency, support compliance and enhance government revenue generation.

Adedokun also clarified that procurement decisions should not be driven solely by the lowest bid, but by the overall value delivered to the public.

He said the objective was to secure value for money and ensure that public contracts produced the intended results, even where the cheapest offer was not necessarily the most suitable option.

According to him, a technology-driven procurement system, supported by reliable contractor data and appropriate categorisation, would reduce cumbersome processes and improve the efficiency of public contracting.

Adedokun said the BPP had submitted recommendations on the proposed amendments to the National Assembly and expressed the agency’s readiness to continue engaging stakeholders to ensure that the revised framework addressed existing challenges.

He added that the bureau was pursuing measures to strengthen its institutional capacity and expand its operational presence across the 36 states, while encouraging greater collaboration with government agencies.

The BPP chief said effective procurement was central to national development, given its implications for project delivery, job creation, infrastructure provision and the efficient use of public resources.

He urged public officials to comply with established procedures, warning that adherence to due process remained essential to protecting them and the institutions they served from procurement-related violations.

Both institutions expressed commitment to continued engagement on the procurement reform process, with the aim of improving transparency, strengthening accountability and ensuring that public funds deliver greater value to Nigerians.