A recent report from the United States government has leveled serious allegations against Nigeria’s National Assembly and several public agencies, accusing them of widespread corruption and opacity in the country’s procurement processes.
In its latest National Trade Estimate Report on Foreign Trade Barriers, the U.S. government outlined challenges faced by American companies operating in Nigeria, citing irregularities and opacity in the award of public contracts.
According to the report, while the Public Procurement Act of 2007 established the Bureau of Public Procurement (BPP) as the central oversight authority, many government entities have continued to sidestep its regulations.
Notably, the Nigerian National Assembly operates an independent procurement process that is exempt from BPP scrutiny, a move the U.S. says compromises transparency.
“U.S. companies have expressed concerns about corruption and a lack of transparency in procurement processes in Nigeria,” the report stated, pointing out that even where guidelines exist, compliance remains inconsistent.
Under current Nigerian law, only majority Nigerian-owned companies are allowed to bid on procurements up to ₦100 million (approximately $64,000) for goods and ₦1 billion (about $640,000) for services and works.
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Above these thresholds, foreign-owned firms can participate, but the report notes that even in such cases, some agencies do not follow due process — failing to confirm funding or secure the required “Certificate of No Objection to Contract Award” from the BPP before proceeding.
Although some progress has been made, such as the BPP making procurement data available online and promoting open bidding, the report indicates that these efforts are undermined by institutional non-compliance and political interference.
Foreign government subsidised financing arrangements, in particular, are cited as key factors influencing contract awards, sometimes to the detriment of fair competition.
These concerns echo domestic criticism of Nigeria’s procurement culture. In January, the Chairman of the Economic and Financial Crimes Commission (EFCC), Ola Olukoyede, described public sector corruption — particularly contract and procurement fraud — as the nation’s most pressing challenge.
“Procurement and contract fraud accounts for over 90 percent of corruption in the public sector,” Olukoyede said during a meeting with the Bureau of Public Procurement. He highlighted practices such as contract splitting and commingling of funds as rampant and damaging to national development.
“Infrastructure and other developmental issues in Nigeria are directly linked to procurement fraud,” he added. “It lies with all of us to make a change.”
Despite U.S. companies securing contracts across various sectors, the report warns that ongoing issues — including delayed payments — continue to discourage investment and participation in Nigeria’s procurement market.
As calls grow louder for reform and greater accountability, observers say Nigeria’s anti-corruption agencies and oversight bodies must be empowered and supported to enforce procurement standards and restore trust in public sector contracting.
