CHALLENGES AFFECTING PROCUREMENT PROCESSES IN NIGERIAN PUBLIC ORGANIZATIONS
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FIRST PART
INTRODUCTION
1.1 Background of the Research
Procurement processes involve a variety of functions that extend far beyond the conventional notion that procurement’s primary duty is to acquire goods and services from external sources to fulfill an organization’s needs. Mlinga (2007) defines procurements as the process of evaluating and purchasing works, goods, and services.
In numerous nations, public procurement is now a topic of public interest and debate, and has been subjected to reforms, restructuring, and rules and regulations. Public procurement refers to the purchasing of goods, services, and works with public funds by a procuring entity (World Bank, 1995). The public sector has traditionally been a major customer with enormous resources; public procurement accounts for 18.42% of global GDP (Roodhooft & Abbeele, 2006; Mahmood, 2010). In developing nations, public procurement is increasingly acknowledged as crucial to service delivery and accounts for a significant amount of total expenditures (Hunja, 2003). Due to the enormous sums of money involved in government procurement and the fact that these funds come from the public, accountability and openness are required (Hui et al., 2011). As a result, a number of industrialized and developing nations have implemented procurement reforms involving legislation and rules. Insufficient regulatory compliance, however, has been the most significant hurdle. The problem of noncompliance affects not just developing nations but also countries with sophisticated economies. While analyzing procurement difficulties in Malaysia, Hui et al. (2011) determined that procurement officers were held accountable for malpractice and noncompliance with procurement regulations and procedures. Most developing nations are confronted with the issue of quick changes in procurements, which place pressure on how the procurement function executes its internal and external processes in order to fulfill its goals (Wambui, 2013). Its implementation is possibly influenced by development partners who have focused on persuading nations to adopt a standard law created by the United Nations Commission on international trade law (McDonald, 2008). Reforms of public procurement are currently centered on encouraging countries to adopt a standardized procurement law and system. Since pointed out by Thai (2001), this is an issue that governments must face, as public practitioners may have to contend with contradicting and contrasting procurement rules and objectives imposed by laws and trade agreements. These problems extend beyond procurement legislation to encompass processes, methods, procurement organizational structures, and personnel. The regulations governing public procurement are based on donor requirements that have been agreed upon, and the procedures should be commensurate with international standards (MoE, 2007). The execution of specified public procurement structures could determine whether or not public procurement regulations are implemented. This study’s main objective is to identify the obstacles affecting procurement processes in Nigerian public entities.
1.2 Description of the Problem
Government procurement has been rated as the activity most susceptible to corruption. As a significant interaction between the public and commercial sectors, public procurement offers several chances for both public and private actors to redirect public funds for private advantage. In OECD countries, bribery by multinational corporations is more prevalent in public procurement than in utilities, taxation, the judiciary, and state capture (OECD, 2007: 9). Therefore, the difficulty of protecting the integrity of public procurement processes is not unique to Nigeria or developing nations. International organizations may have urged governments to pay more attention to the public procurement process due to the lack of open processes and procedures and mismanagement of resources in the awarding of government contracts, to ensure that awarding contracts and other procurement matters are handled professionally and in accordance with acceptable global standards.
Also, the impact of issues influencing these processes in public organizations has not gotten much attention, as the majority of research has concentrated on central government procurement, in which taxpayer dollars are directly involved. Even if procurement processes have been carried out in accordance with existing regulations, there are still a number of obstacles to overcome and improvement issues to solve in this section.
1.3 Objective of the Research
This study’s primary objective is to identify the obstacles impacting procurement processes in public organizations in Nigeria. Specifically, the study aims to:
Determine the obstacles affecting procurement processes in Nigerian public entities.
2. investigate the impact of procurement procedures on the procurement processes of public entities
3. Propose remedies for the issues affecting the procurement processes of public organizations
1.4 Investigative Question
What are the obstacles affecting procurement processes in Nigerian public organizations?
The influence of procurement methods on the procurement processes of public organizations.
What is the solution to the difficulties affecting public organization procurement processes?
1.5 Scientific Hypothesis
There are no obstacles impacting procurement processes in Nigerian government agencies.
There are obstacles impacting procurement processes in Nigerian government agencies.
1.6 Importance of the Research
This study will be beneficial by shedding light on the consequences of public procurement processes for parastatal organizations in Nigeria. In addition, by achieving the intended purpose, the researcher expects the following to benefit: First, to augment the academic community’s understanding of the consequences of procurement processes on public and parastatal enterprises by incorporating the existing knowledge in public procurement.
The study’s conclusions will also help public organizations implement the best practices highlighted throughout the study. The findings will ensure work enhancements and lead to higher incentives and remunerations as a result of better resource usage for enhancing procurement and overall organization performance.
1.7 Scope of the Research
This research will focus on the public procurement processes in Nigeria and their obstacles; it will also be done in the state of Lagos.
1.8 Limitations of the Research
During the course of study, obtaining funding for general research will be a struggle. In addition, respondents may not be able to or want to submit the questionnaires provided to them.
However, it is anticipated that these limitations will be overcome by maximizing the use of available resources and devoting additional time to research. Therefore, it is strongly expected that despite these constraints, their impact on this research report will be small, allowing the study to achieve its purpose and significance.
1.9 Explanation of Terms
Procurement Processes: the method of locating, negotiating conditions for, and acquiring goods, services, or works from an external source, typically through a tendering or competitive bidding process.
Public Organization: any organization that is legally defined as part of the public sector at any level.
CHALLENGES AFFECTING PROCUREMENT PROCESSES IN NIGERIAN PUBLIC ORGANIZATIONS
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