The fundamental principles for Public Procurement in Nigeria, under the Public Procurement Act 2007.
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2007 of Nigeria, all public procurement
Shall be conducted:
(a) Subject to the prior review thresholds as may from time to time
be set by the bureau and pursuant to section 7 (1) ( a)-(b ) of the
Public Procurement Act.
(b) Based only on procurement plans supported by prior budgetary
appropriations and no procurement proceedings shall be formalized
until the procuring entity has ensured that funds are available to
meet the obligations and, subject to the threshold in the regulations
made by the Bureau, has obtained a “Certificate of ‘No Objection to
Contract Award’ from Bureau.
(c) By open competitive bidding;
(d) In a manner which is transparent, timely, equitable for ensuring
accountability and conformity with this Act and regulations deriving
therefrom;
(e) With the aim of achieving value for money and fitness for
purpose;
(f) In a manner which promotes competition, economy and efficiency;
and
(g) In accordance with the procedures and timeline laid down in this
Act and as may be specified by the Bureau from time to time
(2) Where the Bureau has set prior review thresholds in the
procurement regulations, no funds shall be disbursed from the Treasury
or Account of the Federation Account or any bank account of any
procuring entity for any procurement falling above the set thresholds
unless the cheque, payments or other form of request for payments is
accompanied by a certificate of “No Objection” to an award of contract
duly issued by the Bureau.
(3) For all cases where the Bureau shall set a review threshold the
Bureau shall prescribe by regulations, guidelines and the conditions
precedent to the award of Certificate of ‘ No Objection’ under this
Act.
(4) Subject to prior review thresholds as may be set from time to
time by the bureau,any procurement purported to be awarded without a
Certificate of ‘ No Objection’ to the contract award duly issued by
the bureau shall be null and void.
(5) A supplier, contractor or service provider a natural person may
be, a legal person, or a combination of the two. Suppliers, contractor
or service providers acting jointly are jointly and severally liable
for all obligations and responsibility arising from this Act and the
‘non-performance or improper performance of any contract awarded
pursuant to this Act.
(6) All bidders in addition to requirements contained in any
solicitation documents shall:
(a) Posses the necessary:
(i) Professional and technical qualification to carry out particular
procurements;
(ii) Financial capacity;
(iii) Equipment and other relevant infrastructure; and
(iv) Shall have adequate personnel to perform the obligations of the
procurement contracts.
(b) Possess the legal capacity to enter into the procurement contract.
(c) Not be in receivership, the subject of any form of insolvency or
bankruptcy proceedings or the subject of any form of winding up
petition or proceedings; but where such status is the subject of
pending litigation the bidder may bid subject to disclosing it said
status in the bid and the substance and stage of the legal disputation
on the status;
(d) Have fulfilled all its obligations to pay taxes, pensions and
social security contributions;
(e) Not have any director who has been convicted in any country for
any criminal offence relating to fraud or financial impropriety or
criminal misrepresentation or falsification of facts relating to any
matter.
(f) Accompany every bid with a duly sworn affidavit disclosing whether
or not any officer of the relevant committees of the procurement
entity or Bureau is a former or present director, shareholder or has
any pecuniary interest in the bid and confirming that all information
presented in its bid dare true and correct in all particulars.
7) The procuring entity may require a bidder to provide documentary
evidence or other information it considers necessary as proof that the
bidder is qualified in accordance with this Act and the solicitation
documents and for this purpose any such requirements shall apply
equally to be bidders.
(8) WHENEVER it is established by a procuring entity or the Bureau
that any or a combination of the situation set out exist, a bidder
may have its bid or tender excluded from any particular procurement
proceeding if
(a) There is verifiable evidence that any supplier, contractor or
consultant has given or promised a gift of money or any tangible item,
or has promised, offered or given employment or any other benefit,
item or a service that can be quantified in monetary terms to a
current or former employee of a procuring entity or the Bureau, in a
attempt to influence any action, or decision making of any procurement
activity;
(b) A Supplier, Contractor or consultant during the last three years
prior to the commencement of the procurement proceedings in issue,
failed to perform or to provide due care in performance of any public
procurement;
(c) The bidder is in receivership or is the subject of any type of
insolvency proceedings or if being a private company under the
companies and Allied Matters Act, is controlled by a person or persons
who are subject to any bankruptcy proceedings or who have been
declared bankrupt and or have made any compromises with their
creditors within two calendar years prior to the initiation of the
procurement proceedings;
(d) The bidder is in arrears regarding payment of due taxes, charges,
pensions or social insurance contribution, unless such bidders have
obtained a lawful permit with respect to allowance, deference of such
outstanding payments or payment thereof in installments.
(e) The bidder has been validly sentenced for a crime committed in
connection with a procurement proceeding, or any other crime committed
to gain financial profit;
(f) The bidder has in its management or is in any portion owned by any
person that has been validly sentenced for a crime committed in
connection to gain financial profit;
(g) The bidder fails to submit a statement regarding its dominating or
subsidiary relationship with respect to other parties to the
proceedings and persons acting on behalf of the procuring entity
participating in same proceeding or who remains in subordinate
relationship with other participants to the proceedings.
(9) in such cases the procuring entity shall inform the Bureau and
person referred to in subsection (8) (a)-g) of this section, in
writing that the bid or tender in question has been excluded and the
grounds for the exclusion and to keep a record of same in the file
pertaining to the public procurement proceeding in question.
(10) All communications and documents issued by procuring entities and
the Bureau shall be in English Language;
(11) All communications regarding any matter deriving from this Act or
proceedings of public procurement shall be in writing or such other
form as may be stipulated by the Bureau.
(12) Every procuring entity shall maintain both file and electronic
records of all procurement proceedings made within each financial
year and the procurement records shall be maintained for a period of
ten years from the date of the award.
(13) Copies of all procurement records shall be transmitted to the
Bureau not later than 3 months after the end of the financial year and
shall show:
(a) Information identifying the procuring entity and the contractors;
(b) The date of the contract award
(c) The value of the contract; and
(d) The detailed records of the procurement proceedings.
(14) All unclassified procurement records shall be open to inspection
by the public at the cost of copying and certifying the documents plus
and administrative charges as may be prescribed from time to time by
the Bureau.
(15) The criteria stipulated as the basis upon which suppliers or
contractors would be evaluated shall not be changed in the course of
any procurement proceedings
(16) The burden of proving fulfillment of the requirements for
participation in any procurement proceeding shall lie on the supplier
or contractor.
17. A contract shall be awarded to the lowest evaluated responsive bid
from the bidders substantially responsive to the bid solicitation.
(18) Notwithstanding subsection (16) of this section; the Bureau may
refuse to issue a ‘Certificate of ‘No Objection” to Contract Award’ on
the grounds that the price is excessive.
(19) Pursuant to subsection (17) of this section, the Bureau may
direct either that the procurement proceedings be entirely canceled or
that the procuring entity conduct a re-tender.
(20) Pursuant to subsection (18) of this section, the Bureau may
direct either that the procurement proceedings be entirely canceled or
that the procuring entity conduct a re-tender.
(21) The accounting officer of a procuring entity and any officer to
whom responsibility is delegated are responsible and accountable for
any actions taken or omitted to be taken either in compliance with or
in contravention of this Act.
(22) The accounting officer of a procuring entity has the
responsibility to ensure that the provisions of this Act and the
regulations laid down by the Bureau are complied with, and concurrent
approval by any Tenders Board shall not absolve the accounting officer
from accountability for anything done in contravention of this Act or
the regulations laid down hereunder.
(23) Procurement and disposal decisions of a procuring entity shall be
taken in strict adherence to the provisions of this Act and any
regulations as may from time to time be laid down by the Bureau.
(24) Persons who have been engaged in preparing for a procurement or
part of the proceedings thereof may neither bid for the procurement in
question or any party thereof either as main contractor or sub-
contractor nor may they cooperate in any manner with bidders in the
course of preparing their tenders
(25) A procuring entity shall not request or stipulate that a bidder
should engage a particular sub-contractor as a requirement for
participating in any procurement proceedings;
(26) All procurement contracts shall contain provisions for arbitral
proceedings as the primary mode of dispute resolution.
(27) The values in procurement documents shall be stated in Nigeria
currency and where stated in a foreign currency shall be converted to
Nigerian currency using the exchange rate of the Central Bank of
Nigeria valid on the day of opening a tender or bid,
(28) All procurement contracts shall contain warranties for durability
of goods, exercise of requisite skills in service provision and use of
genuine materials and inputs in execution.