SUBSIDY PALLIATIVES: PUBLIC PROCUREMENT AS STRATEGIC TOOL

  Olanrewaju O. Ogunmilua and Adewale Adelere  argue the Bureau of Public Procurement will ensure effective and transparent delivery process

The Public Procurement Act, 2007 and other relevant extant circular/laws of government provide the frameworks for expending public funds, and perhaps the procurement of palliative items. Therefore, it is strategic for the current administration to engage the Bureau of Public Procurement (BPP), the institution saddled with the responsibility of ensuring the delivery of effective and transparent federal government procurement process, through the engagement of reputable firms that has satisfied the baseline requirements for doing business with government. The BPP should provide guidelines and directives for timely and effective implementation of the procurement and disbursement of the palliatives/projects/programmes through the relevant government institutions. This will ensure transparency and accountability of a process that meets international best practices.

Socio-economic policies need measurable variables to determine their effectiveness. The major measurable variables of such policy are health, education, living conditions, and finance. It is the impact of any socio-economic policy on these measurable variables that determine its efficacy. Previous efforts of the last administration under the National Social Investment Programme (NSIP) had limited effectiveness and were not sustainable with the intended beneficiaries clearly not being able to access the benefits.

The current administration under President Bola Tinubu has decided to expend N500 billion on palliatives to cushion the effect of fuel subsidy removal on Nigerians. This measure is in line with the renewed hope agenda of his administration. The government suspended its plans for eight thousand Naira conditional cash transfer to vulnerable households for six months and is planning new measures. There is a need to look at global best practices for procurement and distribution of palliatives and to ascertain how best the funds should be utilized to achieve socio-economic objectives and infrastructural development through the Bureau of Public Procurement of Nigeria.

Lebanon, Pakistan, Philippines and Turkey have previously engaged in distribution of publicly funded palliatives in response to national disasters. The major focus of the relief efforts in Lebanon were directed at medical equipment, distribution of food and interim housing. The reports from humanitarian bodies revealed that the relief materials were unevenly distributed to privileged Lebanese affected by the explosion to the detriment of refugees and migrant workers. In South-East Turkey and Syria the devastating earthquakes left millions internally displaced. The emphasis of relief supplies was initially on temporary shelter, access to safe water, medical care, clothing and education for children. The situation was no different in Philippines were typhoon Odette hit the country on 16^th December 2021. The emphasis of supplies was on urgent needs like shelter, medicines, foods, and clean water. In 2022 in Pakistan, floods caused huge internal displacement in which the National Disaster Management Agency (NDMA) procured relief materials.

Whereas the Nigerian situation is not one of natural disaster, the removal of fuel subsidy creates a severe economic situation of similar proportion for many Nigerians and parallels can be drawn from the experiences of the aforementioned countries to ascertain the best approach to distribution of palliatives by the current administration which in substance are no different to relief materials both in terms of the institutional framework for addressing the crisis and the areas of focus.

The government can only reach out to disadvantaged groups and Nigerians at large by ensuring that at least 70% of government expenditure is through Nigerian companies engaging Nigerian people and spending Nigeria’s currency (we saw this happen in the United State of America under the Buy America Act of 1933 “Buy America”). When the government makes concerted effort to enforce that its purchases are from Nigerians, registered with the Manufacturers Association of Nigeria and Construction Works and services is done by domestic firms; then Nigerians will secure gainful employment, acquire technical skills, have money to pay for health care services, and look away from criminal acts like kidnapping, banditry, etc.

The administration of President Bola Ahmed Tinubu has started well on very noble footing with the “Renewed Hope Agenda” by the removal of the fuel subsidy which has done more harm to every Nigerian irrespective of size and age.

What next now? One,  using existing government institutions to provide quick wins that impacts directly on the poor populace in our rural communities. Two, only Nigerian -owned companies and local manufacturers (Manufacturers Association of Nigeria) should gain contract awards .  Three, accelerated procurement method should be adopted in all government MDA’s . Four, establishment of monitoring and evaluation department in all government agencies to ensure the implementation of government projects. Five, coordinate and partner with CSOs, NGOs that have local community coverage. Six, Ministry of Health and FMC’s workers should dispense drugs and services at reduced cost. Seven, procurement of mass transport vehicles and all government vehicles from only Local Manufacturers. Eight, provision of seedlings and fertilizers for farmers at subsidized amount through the Ministry of Agriculture. Nine,  open government business to the informal sector for full participation and financing instead of external borrowings while the FGN should direct the BPP to develop a framework for the utilization of the excess crude oil funds for infrastructural projects and Programmes.

Such projects will be better monitored through the Nigeria Open Contracting Portal of the BPP in the light of accountability and fairness to all Nigerians. Only at these, can the “poor breath”.

 Ogunmilua LLM, MCIPS, and Barr.Adelere Esq. write from Abuja