Nigeria To Save $152.3m With E-Procurement Solution
According to this report, the Federal Government of Nigeria has announced its plans to begin testing its electronic procurement (E-Procurement) system in six of its ministries. These ministries include health, education, agriculture, transport, water resources, and the ministry of works, power and housing.
The plan was said to have been announced by Mr. Ahmed Abdu, Acting Director General of the Bureau for Public Procurement on Monday while speaking at a procurement gathering in Abuja, Nigeria.
Cushioning Declining Oil Revenue
The government expects to save about $152.3m as a result of deploying this solution. The savings according to Abdu, would represent five per cent of savings from the recurrent expenditure and three per cent on capital expenditure. This is part of the plans by the Nigerian President, Muhammadu Buhari to cut down the cost of governance in order to cushion the nation’s declining oil revenue. The government is also doing this in order so it can cater for the two trillion Naira deficit in its 2016 budget.
Oil production in Nigeria has declined by almost 50% owing to attacks on oil pipelines. This has consequently resulted in a drop in the country’s revenue as it tries to fund its 2016 budget. The attacks were started majorly by a group called the Niger Delta Avengers that initially leveraged Twitter to promote its activities. Production output went from about 2.2 million barrels per day in January 2016, to 1.7 million in April. By mid-May, production output was down to 1.1 million bpd. This has necessitated the search for new streams of income for Nigeria asides oil.
While Agriculture has been the major sector being touted as the solution to cushioning declining oil revenue, the government is also taking baby steps in funding innovative startup ideas from young Nigerians. The government should also look into using technology solutions to address challenges in the Agriculture sector.
Advantages Of An E-procurement Solution
- Saves Cost of Paperwork: E-procurement will save the headache of dealing with a lot of paperwork. This will reduce the cost of purchasing paper which can be a huge cost. It’s easier to retrieve information stored digitally and one will avoid errors that the manual procurement process will bring about.
- Transparency: Everyone with access to the solution can see what is going on. Using paper means someone can decide to hide it or even take it away. It’s easier to track spend and analyze it. Reports can easily be generated. Historical data will also be easier to retrieve. This is a major boost to President Muhammadu Buhari’s goal to decimate corruption in Nigeria.
- Time and Speed: It’s quicker to use and should be less tedious. Traditional solutions can be time-wasting e.g. having to sort through several paper documents. It will increase the speed at which ministries in Nigeria operate. A lot of them are typically slow in responding or taking action.
These are among several benefits that an e-procurement solution can present. There is a great read here.
One can only hope that the solution will be implemented quickly and without any challenges that might shut down the project. Got any thoughts? Do let us know in the comments section.
Cover Image Credit: NAN
Originally published at Techvoize.