Procurement Act Outdated, Responsible For Many Abandoned Projects—Wike Tells Tinubu

Governor of Rivers State, Nyesom Wike said Nigeria’s procurement Act 2007 is responsible for many uncompleted projects in the country and wants the incoming administration to amend the law.

The procurement Act was last amended 16 years ago in June 2007 but a process to review the Act began under former Finance Minister, Kemi Adeosun in 2017.

Although it has passed the third reading in the House of Representatives, the review has been stalled.

Section 35(1) of the Procurement Act 2007 provides “In addition to any other regulations as may be prescribed by the Bureau, a mobilization fee of not more than 15 per cent may be paid to a supplier.

“Once a mobilization fee has been paid to any supplier or contractor, no further payment shall be made to the supplier or contractor without an interim performance certificate issued in accordance with the contract agreement.”

Wike on Wednesday at the commissioning of Rumuokwuta/Rumuola flyover bridge in Port Harcourt, Rivers State said the 15 per cent mobilization fee in the Act is frustrating many projects in the country.

But the document under review proposes the raising of mobilisation fee on contracts from 15 per cent to “not more than 50 per cent.”

According to Wike, he influenced the review of Rivers State procurement law to allow mobilisation fee of up to 70 per cent.

Wike said, “This project was awarded the same day with the 11th flyover in July and in August we did the flag-off of the two flyovers. As I speak to you, the two flyovers have been completed within 8 months period.

“I want to say clearly that we are not owing Julius Berger. I found out that part of the reason why we are having so many uncompleted projects have to do with our procurement law.

“If you follow the procurement law, it will take very long to complete projects because, the law allows 15 per cent to 30 per cent mobilisation. Before you give the contractor another money, inflation rises almost every day and they will comeback for revaluation because of the high cost of building materials.

“But in our own case, I called Mr Speaker for us to amend the procurement law. To allow us pay a company that has the capacity to deliver timely up to 70 per cent of the cost. That is why today, no project being handled by Julius Berger is uncompleted. Not one. That is why we have never failed in completing our project.

“Unfortunately, too, these projects ought to be Federal Government projects because they are federal roads too. If we had said because they are FG roads and we won’t do it, River’s people will suffer.”

The Rivers Governor said he expects the incoming administration to refund the billions spent by the state on Federal Government projects.

He said, “I also believe the FG should say look, you have done well for us. These are projects we should be doing; can you bring your bill for us let us refund your money on the projects..

“That is what it should be when you partner with a good Federal Government. I can assure that as you enter office and approve to pay the money, other states will do the same thing. I’m not asking what we are not entitled to.”