The House of Representatives on Monday vowed to address incessant cases of delays in the execution of contracts in the country.
The Chairman, Committee on Public Procurement, Unyime Idem, made the pledge during a public hearing on a bill organised by the committee to “Amend the Public Procurement Act, 2004.”
According to the lawmaker, over 90 per cent of capital projects spread across the country face requests for variation, mostly occasioned by delays and poor project management.
He said that as a result of these delays, coupled with inflation and devaluation, project costs often hit the rooftop.
“The culture of project delays has existed even before inflation and devaluation became major concerns. It’s an issue that must be addressed from a legislative standpoint,” said Idem.
He added that contractors often delay projects with little regard for consequences, blaming the act on incompetence, lack of prioritisation of government projects, corruption, among others.
Idem also contrasted Nigeria’s project timelines with other countries, noting that in Egypt, contractors work around the clock, cutting project completion times by 50-60%. On the other hand, Nigerian projects often take five to six years to complete, with a 70-75% chance of abandonment.
“The current situation impacts governance and delays the delivery of public goods to Nigerians. As legislators, we face the challenge of providing answers to constituents when projects are delayed or abandoned,” the committee chairman added.
However, both the current Director-General of the Bureau of Public Procurement, Adebowale Adedokun, and his predecessor, Emeka Ezeh, opposed the amendment, arguing that sanctions for delays are already covered in the contract terms.
This is just as they argued that adding such provisions to the Public Procurement Act would be redundant.
Adedokun noted that the PPA Act 2007, already provides a legal framework for procurement processes, including setting standards for competition and transparency, stressing that the proposed amendment to sanction contractors for delays is unnecessary.
“The issue of contract implementation is governed by the terms of the contract, not the Public Procurement Act.
“Sanctions for delays are already included in the Standard Bidding Documents and contract agreements. The proposed amendment goes beyond the scope of the Public Procurement Act and would undermine its original purpose,” Adedokun stressed.
On his part, Ezeh faulted the proposed amendment, stating that it addresses the symptom rather than the root cause of delays.
He advocated a balanced approach that considers “the entire project delivery chain, from needs assessment and design to procurement and contract execution.”
The former BPP boss pointed out that delays can occur at any stage of the process, such as during project design or the selection of an incompetent contractor, and the non-payment or changes in government fiscal policies.