The Federal Government has approved new guidelines allowing contractors, consultants and service providers found guilty of misconduct to be barred from participating in Federal Government procurement for between three and five years.
The new policy, contained in a circular titled “Implementation of the National Guideline on Debarment of Contractors,” was signed by the Secretary to the Government of the Federation (SGF), Senator George Akume.
The guidelines identify six major grounds for debarment, including offering bribes or other benefits to influence procurement decisions, conviction for fraud, wilful failure to fulfil contractual obligations, a record of unsatisfactory performance, falsification of documents, and debarment by a multilateral organisation.
According to the Federal Government, the policy is aimed at promoting integrity, transparency and accountability in public procurement, ensuring value for money and protecting government from non-performing contractors.
Under the new guidelines, a contractor may be sanctioned if found to have offered or promised money, gifts or other tangible benefits to current or former employees of a procuring entity or the Bureau of Public Procurement (BPP) in an attempt to influence a procurement decision.
Offering employment or other financially measurable benefits to such officials for the same purpose is also prohibited.
Contractors convicted of fraud or other offences connected with obtaining, attempting to obtain or executing a public contract or subcontract may also face debarment.
The government further stated that contractors who wilfully fail to perform their contractual obligations or have a history of poor or unsatisfactory performance may be excluded from future procurement processes. Falsification of documents is another ground for sanctions.
A contractor already debarred by a multilateral organisation may also be considered for debarment by the Nigerian government.
Once debarred, Ministries, Departments and Agencies (MDAs) will be prohibited from soliciting offers from the affected contractor, awarding contracts to it or approving subcontracts involving the contractor.
The contractor will also be prohibited from conducting business with the government as an agent or representative of another contractor, consultant or service provider. The sanctions will also apply to partners involved in a joint venture.
However, an existing government contract or subcontract may continue after debarment if the relevant government agency determines that there are valid reasons for allowing it to proceed.
The guidelines provide that debarment may last for a minimum of three years and a maximum of five years.
The process requires the BPP to investigate allegations and notify the affected contractor before a final decision is taken. A contractor will generally have 10 working days to respond to allegations, although the BPP may grant an extension of up to five additional working days.
Where a notice cannot be delivered physically or electronically, the government may publish the proposed debarment in two national newspapers, the Tenders Journal and the BPP website for at least 10 working days.
After receiving a response, the Debarment Committee is required to consider the case and reach a decision on its merits. If debarment is approved, the BPP will issue a final notice stating the grounds, duration and consequences of the sanction.
The name of the debarred contractor will subsequently be entered into the BPP database and published on the Bureau's website, the Federal Tenders Journal and other relevant platforms.
The new guidelines build on the Public Procurement Act 2007, which provides the legal framework for public procurement in Nigeria and gives the BPP responsibility for regulating and monitoring federal procurement activities.
The Federal Government directed all Accounting Officers to ensure that the guidelines are brought to the attention of Tenders Boards, Procurement Planning Committees, Procurement Departments and all officials involved in public procurement.
The circular stated that implementation of the new guidelines is effective immediately and directed all relevant government institutions to ensure strict compliance.
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