Project Materials

THE PROCUREMENT PRACTICE IN THE PUBLIC SECTOR ECONOMY: PROBLEM AND PROSPECTS

Chapter one

Introduction

It is critical to understand that procurement in both the private and public sectors necessitates planning and management. As a result, there is an urgent need for the government to raise awareness and knowledge of the importance of effective procurement practices in the operation of its ministries, particularly the Ministry of Public Utils.

I am confident that the federal government of Nigeria has begun research to determine whether the procurement practice in the ministry of public procurement and the procured rest necessitates objective attainment and, if so, the likelihood of problems encountered during the process.

My primary writing focusses on procurement and the purchasing procedures that must be used to achieve an efficient and tactical purchasing function in this ministry.

The justification for this ministry is critical since there is always a need to acquire or obtain practice for rural development.

The maximum level of efficiency achieved in this procurement of all requirements may be the ministry’s last hope for finding solutions to its difficulties.

1.1 Background of the Study 

According to Uzor (2004), public procurement refers to the acquisition of products and services by the government and its subsidiary agencies, including parastatals.

The purchasing and supply management function, which is essentially a novel management function, has yet to be fully recognised and placed in the Nigerian business environment.

Non-recognition is more prevalent in sector organisations that use non-professionals to perform purchasing functions. Procurement of practice is an important part of purchasing and supply.

So, in procurement practice, many factors will be examined, including purchasing objectives, both general and specialised, which will help to bring out the allure of purchasing and supply claim management.

According to Oyeoku (2006), the general purpose of purchasing is to receive the appropriate quality goods and services at the right price and time from the right provider and delivered to the right place. According to him, this is referred to as the “right” of purchasing, or, more precisely, the purchase mix.

1.2 Statement of the Problem

The contract for research of this nature is frequently related with one type of problem or another. For any research study to fulfil its goal, the problem must be described clearly and precisely.

It is therefore vital to explore beneath the surface in order to determine the origin and size of the problem; failure to do so will result in a series of errors, which are the beginning of management or managerial, business failure.

The issues in procurement practice are caused by the realities of past, present, and future economic considerations as they affect the ministry in question, as well as the manner in which their specific economy is directed towards procurement operations amidst the complications.

When we consider the rising day-to-day unpredictability in price, quality, availability, and other aspects in relation to the items’ current and future movements, purchase design takes on a more sophisticated dimension.

Furthermore, a shortage of purchasing specialists has resulted in buying syndrome, incompetence, and inefficiency in the buyer’s act and way of purchasing specific things.

Again, the lack of a dedicated purchasing department has rendered the purchasing function easy and unappealing because the divisions handle the majority of its functions.

The study also discovered a complete lack of purchasing research as a vital tool for creating a data bank for discovering chances for purchasing action.