How is the @NigeriaGov improving public procurement? Is SFTAS intervention working?
According to the @WorldBank SFTAS assessment report, only 15 of 36 states met the DLI 6.1 requirement, while 16 met the DLI 6.2 requirement and published data on all contracts awarded.
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Let’s take a step back to understand open contracting!
Open contracting is a system of procurement that allows disclosure of procurement data at all stages and engagement and feedback from other stakeholders. #FixOurOil
To improve public procurement, the @NigeriaGov created a portal that allows the increase and disclosure of procurement information to all stakeholders to ensure efficient service delivery, improved transparency, and accountability. #FixOurOil
By making contracts available to the public, more people can scrutinize them, allowing for more sophisticated policy development based on an independent analysis by many stakeholders. #FixOurOil
But because the industry is opaque, some of the people who will be responsible for making sure open contracting is done right have a stake in the outcome or are politically vulnerable.#FixOurOil
Adopting open contracting will no doubt improve procurement quality and facilitate proper coordination and effective management of a country's natural resources. But how can transparency in open contracting be improved? #FixOurOil
Transparency in open contracting can be improved if all aspects of the procurement process are supported by legal and regulatory frameworks. To facilitate data sharing and usage, relevant information for a procurement process must be published in a readable format.
It is also important to keep up with the implementation of the PIA as this helps to track its implementation. #FixOurOil
We conducted an analysis on the quality of @nassnigeria’s FG Budget reviews. Our findings point to gross abuse of appropriation powers, fueling inefficiency & waste that contribute to poor service delivery and ineffective economic policy.
1,522 projects with a cumulative cost of N186.61bn were inserted into the #2022budget of @FmardNg. Key allocations to projects that are crucial to achieving the strategic goal of the Nat Devt Plan were drastically reduced to create fiscal space for the @nassnigeria insertions.2/5
Worrisomely, a number of projects in the 2022 approved budget can be directly linked to principal officers of the National Assembly. It would seem that National Assembly members are becoming more emboldened to put their names on public projects funded with taxpayers' money. 3/5
President @MBuhari has proposed a record budget of N20.51tn for the 2023 fiscal year. This is anchored on a revenue projection of N9.73tn & a deficit of N10.78tn. The budget, If approved, will be 19.80% higher than the N17.12tn approved for 2022.
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Of the total N20.51tn, debt service has the highest allocation of N6.31trn, while personnel cost and capital expenditure will gulp N4.99tn & N4.93tn, respectively. N744.11b has been earmarked for statutory transfer, of which the @nassnigeria & @njcNig will receive N159b & N150b.
To finance the budget, the Federal Government projects an oil production of 1.69 million barrels per day at $70 per barrel. The projected GDP growth will be at 3.75% with an exchange rate of N435.57/$ and an inflation rate of 17.16%.
Open contracting is a procurement method that supports feedback and increases competition among potential contractors. It is crucial for transparency purposes and will help prevent fraud and corruption. #FixOurOil
Countries worldwide are adopting open contracting to promote best practices for public procurement disclosures and participation. Nigeria is one of the countries making great efforts to increase contract transparency. #FixOurOil
Between Jan & Apr 2022 alone, Nigeria spent >100% of its revenue on debt service, surpassing IMF's prediction for 2026.
This is amidst growing subsidy payments and a 13-month high inflation of 17.7% that has pushed many into poverty.
We are concerned.
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In our Consultation Memo released in Feb 2022, we highlighted several reform issues bordering on Nigeria’s public financial management that affect the very core of governance, separation of powers, expenditure efficiency, and the livelihoods of millions of Nigerians;
...83 million of whom live in extreme poverty.
4 months later, some of those challenges still persist, with additional ones that-if not properly managed, would fiscal crisis for an already impoverished nation.