MIRA INFORM REPORT

Report Date :

25.04.2013

IDENTIFICATION DETAILS

Name :	BUREAU OF PUBLIC PROCUREMENT
Registered Office :	No. 11, Sulaiman Barau Street, Presidential Villa, Abuja, FCT
Country :	Nigeria
Date of Incorporation :	Not Available
Com. Reg. No.:	Not Available
Legal Form :	Government Organization
Line of Business :	Subject is a regulatory authority responsible for the monitoring and oversight of public procurement, harmonizing the existing government policies and practices by regulating, setting standards and developing the legal framework and professional capacity for public procurement in Nigeria
No. of Employees :	Not available

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	No Complaints
Litigation :	Clear

NOTES:

Any query related to this report can be made on e-mail: infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30^th, 2012

Country Name	Previous Rating (31.03.2012)	Current Rating (30.06.2012)
Nigeria	B1	B1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Nigeria ECONOMIC OVERVIEW

Oil-rich Nigeria has been hobbled by political instability, corruption, inadequate infrastructure, and poor macroeconomic management, but in 2008 began pursuing economic reforms. Nigeria's former military rulers failed to diversify the economy away from its overdependence on the capital-intensive oil sector, which provides 95% of foreign exchange earnings and about 80% of budgetary revenues. Following the signing of an IMF stand-by agreement in August 2000, Nigeria received a debt-restructuring deal from the Paris Club and a $1 billion credit from the IMF, both contingent on economic reforms. Nigeria pulled out of its IMF program in April 2002, after failing to meet spending and exchange rate targets, making it ineligible for additional debt forgiveness from the Paris Club. In November 2005, Abuja won Paris Club approval for a debt-relief deal that eliminated $18 billion of debt in exchange for $12 billion in payments - a total package worth $30 billion of Nigeria's total $37 billion external debt. Since 2008 the government has begun to show the political will to implement the market-oriented reforms urged by the IMF, such as modernizing the banking system, removing subsidies, and resolving regional disputes over the distribution of earnings from the oil industry. GDP rose strongly in 2007-12 because of growth in non-oil sectors and robust global crude oil prices. President JONATHAN has established an economic team that includes experienced and reputable members and has announced plans to increase transparency, diversify economic growth, and improve fiscal management. Lack of infrastructure and slow implementation of reforms are key impediments to growth. The government is working toward developing stronger public-private partnerships for roads, agriculture, and power. Nigeria's financial sector was hurt by the global financial and economic crises, but the Central Bank governor has taken measures to restructure and strengthen the sector to include imposing mandatory higher minimum capital requirements.

Source : CIA

Company name

BUREAU OF PUBLIC PROCUREMENT

OPERATIONS

The Bureau of Public Procurement is a regulatory authority responsible for the monitoring and oversight of public procurement, harmonizing the existing government policies and practices by regulating, setting standards and developing the legal framework and professional capacity for public procurement in Nigeria.

COMPANY LOCATION

Subject is located at No. 11, Sulaiman Barau Street, Presidential Villa, Abuja, FCT, Nigeria

IDENTIFICATION

NAME: BUREAU OF PUBLIC PROCUREMENT

HEAD OFFICE ADDRESS: No. 11, Sulaiman Barau Street, Presidential Villa, Abuja, FCT, Nigeria

TELEPHONE: 234-9-6252377, 6252380

FAX: 234-9-6252379

WEBSITE: www.bpp.gov.ng

PRIMARY CONTACT: Mr. Adebowale Adedokun (Special Assistant to Director General)

(234-805-517-1713)

Currency: All monetary quoted in this report are in Nigerian Naira, the local currency or unless otherwise stated. The exchange rate is N155 to 1 US $.

SUMMARY

The organization belongs to Nigerian government and is not registered with Corporate Affairs Commission (CAC).

OFFICER

S/N	Name	Position
1.	Engr. Emeka Ezeh	Director General
2.	Engr. John Obinna Chukwu	Director, Public Procurement

BACKGROUND

The Public Procurement Act 2007 established the Bureau of Public Procurement (BPP) as the regulatory authority responsible for the monitoring and oversight of public procurement, harmonizing the existing government policies and practices by regulating, setting standards and developing the legal framework and professional capacity for public procurement in Nigeria.The corporate office is located at No. 11, Sulaiman Barau Street, Presidential Villa, Abuja, FCT, Nigeria.

The introduction of Public Procurement Reforms in Nigeria followed a World Bank Country Procurement Assessment survey conducted in 1999 which established the link between poor/weak public procurement procedures and corruption as well as its far reaching negative consequences on national development especially in the area of infrastructural development in Nigeria. The Assessment Report revealed that 60k was being lost to underhand practices out of every N1.00 spent by Government and that an average of ten Billion US Dollars ($10b) was being lost annually due to fraudulent practices in the award and execution of public contracts through inflation of contract cost, lack of procurement plans, poor project prioritization, poor budgeting processes, lack of competition and value for money and other kinds of manipulations of the procurement and contract award processes.

In order to address the above shortcomings, the Federal Government initiated the Public Procurement Reform as part of its Economic Reform agenda designed to restore due process in the award and execution of federal government contracts. This led to the setting up of the Budget Monitoring and Price Intelligent Unit (BMPIU known as Due Process) in 2001 to implement the Federal Government's Public Procurement Reform Policy aimed at minimizing open abuses to known rules, processes and standards in the award and execution of public sector contracts in Nigeria.

Following the growing Public demand that the reforms are sustained and institutionalized with legal backing, a Public Procurement Bill was articulated in 2003/2004 by the Leadership of BMPIU and presented to the National Assembly. The Public Procurement Bill was thereafter passed by the National Assembly on the 30th of May, 2007 and subsequently signed into Law by Mr. President on the 4th of June, 2007.

Nigeria has lost several hundred billions of Naira over the last decade due to flagrant abuse of procedures for award of public contracts, inflation of contracts and lack of transparency, lack of competence-based competition, and lack of merit as the fundamental criteria for awarding of public contracts. This finding made it imperative for reform of the procurement system if Nigeria is to reduce the large scale corruption and waste that has reduced the efficiency of the Nigerian public sector. These reasons brought about the birth of Bureau of Public Procurement in 2001 under the Act.

The Nigerian Bureau of Public Procurement (BPP) plays a significant role in ensuring efficient and integrity-based monitoring of the implementation of all Federal Government capital projects. The mission of BPP is to establish an open, transparent and competitive federal procurement system that is integration-driven, upholds spending within appropriation and ensures speedy delivery of projects, thus achieving value for money without sacrificing quality and standards.

The mission will be difficult to achieve without a deployment of a Databank Management System to assist BPP to ensure strict compliance with openness, competition and cost accuracy rules and procedures that should guide contract award within the Federal Government of Nigeria. The Nigerian Bureau of Public Procurement (BPP) is seeking a turnkey IT solution to automate its complex mandate. The United Nations Office on Drugs and Crime through its Information and Technology Service (ITS) has proposed a technical solution that is scalable to meet the current and foreseen future needs of BPP.

The solution encompasses three deliverable areas: ICT infrastructure and data center, procurement management software, and IT training. To facilitate the capacity-building of BPP staff and to enhance the absorption rate of BPP's relevant deliverables, a 3-year phased approach was proposed.

During our visit to the address, we were denied access into the premises by the security officers on duty. There was tight security everywhere. According to them, the insecurity situation in the country made the management of the Agency to give strict instruction that no visitor without prior appointment and/or clearance should be allowed into the premises. All efforts to speak with any officer or personnel proved abortive as they all decline information when asked.

We later spoke with Mr. Patrick (Assistant Secretary) through 234-9-6252377 who stated that there is no such name or department as Contract Award Committee (CAC) in Bureau of Public Procurement (BPP). We also spoke with Mr. Adebowale Adedokun (Special Adviser to Director General – 234-805-517-1713) who also confirmed that NO SUCH Committee in BPP and advised that any relationship with such should be suspended as it is fake, invalid and fraudulent.

Conclusion: Based on our visit to the address and available information, we are of the view that the organization is owned by the Federal government of Nigeria. However, having established that the Committed mentioned have no relationship with the BPP and is a SCAM, we therefore advised that any business transaction with the purported committee and individuals using BPP should be suspended with immediate effect. The e-mail address provided (cac_contactcommittee@live.com) does not belong to Bureau of Public Procurement.

FUNCTIONS

The Bureau of Public Procurement has the following functions amongst others:

• Formulate the general policies and guidelines relating to public sector procurement for the approval of the Council;
• Publicise and explain the provisions of the procurement act;
• Subject to thresholds as may be set by the Council, certify Federal procurement prior to the award of contract;
• Supervise the implementation of established procurement policies;
• Monitor the prices of tendered items and keep a national database of standard prices;
• Publish the details of major contracts in the procurement journal;
• Publish paper and electronic editions of the procurement journal and maintain an archival system for the procurement journal;
• Maintain a national database of the particulars and classification and categorization of federal contractors and service providers;
• Collate and maintain in an archival system, all federal procurement plans and information;
• Undertake procurement research and surveys;
• Organize training and development programmes for procurement professionals;
• Periodically review the socio-economic effect of the policies on procurement and advise the Council accordingly;
• Prepare and update standard bidding and contract documents;
• Prevent fraudulent and unfair procurement and where necessary apply administrative sanctions;
• Review the procurement and award of contract procedures of every entity to which the procurement act applies;
• Perform procurement audits and submit such report to the national Assembly bi-annually;
• Introduce, develop, update and maintain related database and technology;
• Establish a single internet portal that shall serve as a primary and definitive source of all information on government procurement containing and displaying all public sector procurement information at all times; and
• Co-ordinate relevant training programs to build institutional capacity 

POWERS

The Powers of the Bureau are to:

• Enforce the monetary and prior review thresholds set by the Council for the application of the provisions of this Act by the procuring entities.
• Subject to the paragraph (a) of this subsection, issue certificate of "No Objection" for Contract Award" within the prior review threshold for all procurements within the purview of this Act.
• From time to time stipulate to all procuring entities the procedures and documentation pre- requisite for the issuance of Certificate of 'No Objection' under this Act.

REASONS FOR ESTABLISHMENT OF BPP

Where a reason exist:

• Cause to be inspected or reviewed any procurement transaction to ensure compliance with the provisions of this Act
• Review and determine whether any procuring entity has violated any provision of this Act
• Debar any supplier, contractor or service provider that contravenes any provision of this Act and regulations made pursuant to this Act
• Maintain a national database of federal contractors and service providers and to the exclusion of all procuring entities prescribe classifications and categorizations for the companies on the register
• Maintain a list of firms and persons that have been debarred from participating in public procurement activity and publish them in the procurement journal
• Call for such information, documents, and reports in respect of any aspect of any procurement proceeding where a breach, wrongdoing, default, mismanagement and or collusion has been alleged, reported or proved against a procuring entity or service provider
• Recommend to the Council, where there are persistent or serious breaches of this Act or regulations or guidelines made under this Act for
• The suspension of officers concerned with the procurement or disposal proceeding in issue
• The replacement of the head or any of the members of the procuring or disposal unit of any entity or the Chairperson of the Tenders Board as the case may be
• The discipline of the Accounting Officer of any procuring entity
• The temporary transfer of the procuring and disposal function of a procuring and disposing entity to a third party procurement agency or consultant; or
• Any other sanction that the Bureau may consider of appropriate
• Call for the production of books of accounts, plans, documents, and examine persons or parties in connection with any procurement proceeding
• Act upon complaints in accordance with the procedures set out in this Act
• Nullify the whole or any part of any procurement proceeding or award which is in contravention of this Act
• Do such other things as are necessary for the efficient performance of its functions under this Act

GUIDELINES

• Approval Threshold
• Public Procurement Steps
• Complaints Procedure
• Budget Implementation Handbook
• Code of Conduct for Observers

PROCUREMENT DOCUMENTS

· Procurement Procedures Act

· Procurement Procedures Manual

· Procurement of Works

· Procurement of Goods

· Procurement of Small Works

· National Shopping Document

SELECTION DOCUMENTS

· Selection of Consulting Firms(Small Assignments Lump-Sum)

· Selection of Individual Consultants

· Selection of Consulting Firms(Small Assignments Time-Based)

· Selection of Consulting Firms(Complex Time-Based)

· Selection of Consulting Firms(Complex Lump-Sum)

OBJECTIVES

• The harmonization of  existing government policies and practices on public procurement and ensure probity, accountability and transparency in the procurement process
• The establishment of  pricing standards and benchmarks
• Ensuring the application of fair, competitive, transparent, value-for-money standards and practices for the procurement and disposal of public assets; and
• The attainment of transparency, competitiveness, cost effectiveness and professionalism in the public sector procurement system.

VISION STATEMENT

Building and sustaining an efficient country procurement system that meets international best practices

MISSION STATEMENT

To professionalize the process of procurement that ensures Transparency Efficiency, Competition, Integrity and Value for Money to support National Growth and Development

CORE VALUES

• Economic Efficiency
• Competition - Providing level playing ground for all strata of bidders
• Value for money
• Transparency

PHYSICAL VISIT

1. Company Premises
2. Corporate Affairs Commission

FINANCES

Subject is not a profit making organization, as such, no Audited Accounts was not available as at the time of compiling this report.

OFFICIAL REMARKS

Having carried out all necessary verifications on subject, our investigations revealed that Bureau of Public Procurement is located at No. 11, Sulaiman Barau Street, Presidential Villa, Abuja, FCT, Nigeria.

All information contained in the report is from secondary sources only.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.54.30
UK Pound	1	Rs.82.88
Euro	1	Rs.70.80

INFORMATION DETAILS

Report Prepared by :

MNL

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
----	NB	New Business	----

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.