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FG cites study indicating public procurement accounts for about 30% of GDP

FG says research revealed that public procurement accounted for an average of 25 to 30 per cent of GDP in developing and emerging market economies.

• December 14, 2023
Federal Ministry of Agriculture and Food Security
Federal Ministry of Agriculture and Food Security[credit: Fda.Fmard]

The federal government says research revealed that public procurement accounted for an average of 25 to 30 per cent of gross domestic product (GDP) in developing and emerging market economies.

The permanent secretary at the Ministry of Agriculture and Food Security, Ernest Umakhihe, stated this on Thursday in Abuja at a workshop on public procurement organised by the ministry.

Mr Umakhihe said the African Development Bank said in 2009 that public procurement accounted for 70 per cent of government budgets and expenditures across Africa.

He said the workshop aimed to keep everyone abreast of the latest developments in the procurement process towards a seamless and efficient delivery of goals and objectives of the agricultural sector.

Mr Umakhihe explained that it was instructive that the workshop took place when all federal government ministries, departments and agencies (MDAs) were defending their 2024 budgets.

“While presenting the 2024 budget tagged ‘Budget of Renewed Hope’ to the National Assembly, President Tinubu made it clear that its top priorities are Nigeria’s national defence and internal security. Others are local job creation, macro-economic stability, investment, environmental optimisation, human capital development, poverty reduction and social security.

“You will all agree with me that virtually all the priorities mentioned above are directly linked to the agricultural sector. No wonder, then, that the sector is the mainstay of the Nigerian economy. It is imperative that we are all kept abreast of the latest developments in the procurement process towards a seamless and efficient delivery of the goals and objectives of the sector,” added Mr Umakhihe.

The government official also mentioned that enhancing and improving the public sector procurement systems required good governance and procurement practices.

Mr Umakhihe said there is a need to be conscious of all the elements of the Finance Act 2020 as it affects Public Procurement and the Revised Service-Approval Thresholds.

“In order for the country to achieve its food security goal in line with the present administration’s eight-point agenda, we must all be more proactive than ever,” the permanent secretary noted.

(NAN)

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