PROJECT TOPIC: CHALLENGES AFFECTING PROCUREMENT PROCESSES IN PUBLIC ORGANIZATIONS IN NIGERIA
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Public Procurement Acts (PPAs) of most nations especially developing nations have not been able to achieve its desired purpose. This is because of the challenges, among others, faced by the stakeholders in the implementation of the Acts due to the economic, social and political environment where the Act is operating. The purpose of this study being to illustrate challenges affecting procurement processes it intended to describe observations as it exist. In this aspect descriptive research design has been used as it is considered to be suitable for the study. Through understanding educational research argues that all research is partly descriptive in nature, insofar as the descriptive aspect defines and describes the researchers who, what, when, where, why, and how, which are exactly some of the questions raised in the study. The descriptive research design also assisted in saving both time and money.
1.1 Background of the Study
Procurements processes entail various functions move far beyond traditional perception that procurement main role is acquiring works or services from outside sources for replenishing organization needs. Mlinga (2007), describe procurements as activity of assessing, buying of works, goods and service. According to Nditi (2014), Public procurement expenditure is the largest volume of expenditure in the annual development budget for Nigeria as about 75% of its budget during the particular financial year is spends in public procurements.
The public procurement processes for Public organizations in Nigeria has undergone various reforms back as 1970's to earlier 2000's whereby Independent Procurement Supervisory Body, The Public Procurement Regulatory Authority [PPRA] was established. Nigeria was operating state owned enterprises referred as Parastatal organizations/Enterprises. These organizations were established under Public Corporation Acts of 1970 whilst some of them were under the Companies Ordinance CAP 212.
In this aspects Public Procurement in Parastatal organizations/ Enterprises before PPRA came into effect were regulated by specific laws established under Parent Ministries, furthermore each Parastatal/Enterprise organization use to disseminate its own procurement regulations. Hence procurement processes challenges and practices used to differ a lot from one organization to another based on operations and functions of concerned Enterprise. Vividly example of these complications was Central Tender Board as governing entity for procurement for central government and some Parastatal Enterprises whereby its functions was both operational as well as regulatory hence creating conflict of interest during discharging procurements related functions.
Procurement management has become an important area of management particularly in the last few years. Although various studies have been conducted in this phenomenon but researchers still have a desire for exploring much in aspects of procurement processes in regards to Public organizations, this is due to the facts that poor performance has been observed in lieu to procurement practices, despite having good regulations in our country.
Efficiency procurements procedures has become one of the crucial factor for determining organization efficiency as inefficiently procurement procedures not only reducing organization profit margins but also impact on overall success of organizations. In this aspect procurement is considered to be of major strategic importance for organization successfulness, Paulraj et al. (2006). Procurement is amongst the important functions of any government, so as organizations and enterprises. It plays a significant role in organization performance.
According to Calendar and Mathews (2000); it is estimates that the budget allocated. For government procurements for various countries in the world varies from 10% to 30% of their respective GNP. As per PPRA Audit conducted on June 2013, PPF Pension Funds made various procurements transactions of the tune of Tshs 43 billion between April and August 2012; in development country like ours such procurement for a single public enterprise during a period close to quarter of its fiscal year is colossal. The Audit covers tenders in categories of Works, Goods, Non-Consultancy and Consultancy Services for the Fiscal Year 2011/2012. These procurements were done as per PPRA regulations; however, the Regulatory Body evaluate the overall procurement Processes and award the score as per evaluations criterions, during the assessment various recommendations for improvement was suggested. In normal practice Parastatal organizations abide with PPRA procurement procedures as well as International Procurement standards similar to International Contract Guidelines such as FIDIC Contract, but generally all procurements whether local or internationally are categorically based on three important aspects of price, delivery, and quality.
1.2 Statement of the Research Problem
Procurement Processes plays significant role in facilitating overall success of organization in view of acquiring goods, works or services from outside sources for attaining value for money. Even through Public Procurements has been studied extensively through Smith and Trybus, (Eds 2008) and Casanova, (2013). Impact of challenges affecting these processes in Public organizations has not received much attention, as most of the study focused in central government procurement whereby Government is directly involved through taxpayer’s monies. Although procurement processes have been followed as per existing regulations but still there are many challenges to overcome and addressed for improving in this portion. In this phenomenon issues for challenges affecting procurements processes for Parastatal Organizations in Nigeria has not been addressed much in literature.
1.3 Objectives of the Study
1.3.1 The General Objective
The general objective of this study is to investigate the factors affecting procurement, Processes for Parastatal Organizations with specific focus to PPF Pension Funds Head Quarters' in Dar es Salaam.
1.3.2 Specific Objectives
The specific objectives of this study are:
- To establish to what extent does procurement methods affects public procurement in Parastatal Organizations in Nigeria.
- To determine the extent of record keeping and management on who it influences procurement decisions for Parastastal Organizations in Nigeria.
- To examine the effect of training in procurement expertise for Parastastal Organizations in Nigeria.
- To determine to what extent does ICT applications and usage affects procurement for Parastastal Organizations in Nigeria.
1.4 Research Questions
The research questions are as stipulated below: -
- How does procurement methods affect public procurement in Parastastal organisations in Nigeria?
- What is the effect of record keeping and management in regards to procurement conducted at Parastastal Organizations in Nigeria?
- To what extent does training affects procurement decisions for Parastatal organizations in Nigeria?
- To what extent does ICT useful influences procurement decisions for Parastatal organizations in Nigeria?
1.5 Significance of the Study
This study was significant in the sense that has to put into perception the effects for public procurement processes for Parastatal organizations in Nigeria, through attaining the purpose the researcher is expecting this study has be of benefit through put into insight the effects for public procurement processes for Parastatal organizations in Nigeria, furthermore through attaining the intending purpose the researcher anticipates this study to be of benefit to the following:
First, to add the current existing knowledge in Public Procurement which contributes to academicians in developing knowledge regarding the effects of procurements processes for Public and Parastatal organizations. The findings of the study also will assist Parastatal and other organizations to utilize the best practices as suggested throughout this study. The findings will ensure work improvements and lead to better incentives and remunerations achieved through better utilization of resources in regards to improving processes for procurement and general organization performance. And finally, the findings shall provide useful information's in regards to Regulatory body for Procurement [PPRA] as well as policy makers for the same in view of taking necessary action to address challenges facing procurement practitioners so as to bring about an easily implementable suggestions in this focused area of the study.
1.6 Scope of the Study
The study involved few selected Parastatal organizations based in Ilala district at Dar es Salaam. The focus of study was to establish factors affecting procurement processes among Parastatal organizations in Nigeria, with PPF Pensions Funds being the main focus of the study. The study was carried out at PPF Pension Funds Head Quarters in Ilala district, Dar es Salaam Region. The envisaged targeted information's was 45 employees of organization.
1.7 Organization of Study
This study has been organized in five chapters. Chapter one entail introduction, background of study, statement of problem, objectives of study, research questions, significant and scope of study. Chapter two covers literature review, chapter three covers research methodology; meanwhile chapter four is envisaged to cover data analysis, presentation and interpretation. Chapter five is specifically for summary of the findings, discussions, conclusions and recommendations.
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myProject.ng (2022). Challenges affecting procurement processes in public organizations in nigeria. myProject.ng: retrieved December 7, 2022, from https://myproject.ng/business-administration/challenges-affecting-procurement-processes-in-public-organizations-in-nigeria/index.html
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Accessed 7, December, 2022
myProject.ng. "Challenges affecting procurement processes in public organizations in nigeria" , 7, December, 2022. Web. 7 December, 2022. https://myproject.ng/business-administration/challenges-affecting-procurement-processes-in-public-organizations-in-nigeria/index.html .
myProject.ng, . "Challenges affecting procurement processes in public organizations in nigeria" (2022). Accessed 7, December, 2022. https://myproject.ng/business-administration/challenges-affecting-procurement-processes-in-public-organizations-in-nigeria/index.html .;
myProject.ng (2022), . Challenges affecting procurement processes in public organizations in nigeria [Online] myProject.ng (2018). Available at: https://myproject.ng/business-administration/challenges-affecting-procurement-processes-in-public-organizations-in-nigeria/index.html . ( Accessed 7, December, 2022 ).