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 http://www.iaeme.com/IJMET/index.asp 1431 editor@iaeme.com International Journal of Mechanical Engineering and Technology (IJMET) Volume 10, Issue 03, March 2019, pp. 1431-1440. Article ID: IJMET_10_03_144 Available online at http://www.iaeme.com/ijmet/issues.asp?JType=IJMET&VType=10&IType=3 ISSN Print: 0976-6340 and ISSN Online: 0976-6359 © IAEME Publication Scopus Indexed
CAUSES OF NON-COMPLIANCE WITH PUBLIC PROCUREMENT ACT, 2007 AMONG FEDERAL AND STATES TERTIARY INSTITUTIONS IN PROJECT DELIVERY IN SOUTHWEST, NIGERIA
Ebenezer Olutide. Bamidele, Timothy O. Mosaku, and Olabosipo I. Fagbenle
Department of Building Technology, Covenant University, Ota, Ogun state, Nigeria.
ABSTRACT
The procurement system in Nigeria is known to be bedeviled with mismanagement and corruption. The scenario prompted the enactment of Public Procurement Act, (PPA) 2007 which regulates all procurement of projects made with public funds. The  Act was enacted to be complied with by both the federal and state governments together with Ministries, Departments and Agencies (MDAs) in their procurement of goods, works and services. Studies however, have shown that compliance with the Act by the various procurement entities is affected by diverse challenges. This study investigates and compares the various causes of non-compliance with the PPA, 2007 among two  prominent categories of government sponsored tertiary institutions in Southwest,  Nigeria namely; Federal Tertiary Institutions (FTIs) and State Tertiary Institutions (STI). A questionnaire survey research approach which involved a field survey of  Federal and state Tertiary Institutions in Southwest, Nigeria was carried out 
.
 In all, 44  Higher Education institutions comprising 17 federal tertiary institutions and 27 state
tertiary institutions were used for the study. The perception of the institutions’
 Procurement Officers on the problems associated with the implementation and compliance with the provisions of the Act and their consequences were sampled using  structured questionnaires.The results revealed that unfamiliarity with the provisions of the Act, poor record management, unprofessionalism, inadequate organizational incentives and media publicity were the major causes of non-compliance.
 
The study concluded that there is need for understanding of the Act by the parties involved in the implementation of the Act in both the FTIs and STIs in Southwest,  Nigeria for effective compliance. The study recommended among others, trainings in  form of conferences, seminars and workshops to the procurement officers of the institutions for better and improved compliance with the Act.
Keywords
: Public Procurement Act, Construction procurement, University, Polytechnic, College of Education, Higher Education Institution.
 
Causes of Non-Compliance with Public Procurement Act, 2007 among Federal and States Tertiary Institutions in Project Delivery in Southwest, Nigeria
 
http://www.iaeme.com/IJMET/index.asp 1432 editor@iaeme.com
Cite this Article
 Ebenezer Olutide. Bamidele, Timothy O. Mosaku, and Olabosipo I. Fagbenle, Causes of Non-Compliance with Public Procurement Act, 2007 among Federal and States Tertiary Institutions in Project Delivery in Southwest, Nigeria, International Journal of Mechanical Engineering and Technology, 10(3), 2019, pp. 1431-1440. http://www.iaeme.com/IJMET/issues.asp?JType=IJMET&VType=10&IType=3
1. INTRODUCTION
Public procurement refers to the overall process of acquiring, purchasing or obtaining materials, services or properties from outside a government, governmental agencies, ministries, departments or extra ministerial department (PPDC, 2012). The process is usually guided by different laws or regulations in all the nations of the world. The regulation guiding public  procurement in Nigeria is referred to as the Public Procurement Act, 2007 (BPP, 2007). The regulatory authorities for the monitoring and implementation of the Act are the Bureau of Public Procurement (BPP) and the National Council on Procurement (NCP). The Act was enacted in 2007 as a regulatory framework for all public procurement in Nigeria. It stipulates clear cut  procedures for achieving competitiveness, credibility, accountability and transparency in all  procurement financed with public funds. However, several years after the enactment, compliance with the Act is still a major challenge (Ayangade, Wahab and Alake, 2009; Wahab, 2014; Hyancinth & Yibis, 2017). PPDA 2006 reported that non-compliance with set  procurement process, performance and procedure has led to irregular and subjective decisions and that such decisions had resulted into costly consequences for most public entities, and the country at large. Federal Tertiary Institutions (FTIs) and State Tertiary Institutions (STIs) are two levels of institutions owned by the federal and state governments respectively. They have three categories of tertiary institutions each namely: Universities, Polytechnics and Colleges of Education. These institutions with the help of funds obtained from their internally generated revenues, allocation from governments, as well as grants from several organizations and Agencies like Tertiary Education Trust Fund (Tetfund), World Bank, UNESCO, among others,  procure several projects. Such projects include classrooms, hostels, lecture theatres, studios, workshops, laboratories, among others. The tertiary institutions from these two levels of governments are part of government MDAs expected to comply with the PPA, 2007 in all their  procurement activities. The two levels of government in Southwest Nigeria have 44 Public Tertiary Institutions (JAMB, 2016). These institutions increased in population as a result of
yearly students’ enrolment as well as the corresponding staff recruitments. Resulting from this,
an enormous capital outlay is required in terms of physical infrastructural developments. In view of their enormous infrastructural capital projects requirement and the attendant contributions to success and development of the institutions and the nation in general, this study seeks to examine the causes of non-compliance with the procurement Act, 2007 among the Federal and State Tertiary Institutions in Southwest Nigeria, with a view to comparing the effect of the causes of non-compliance with the Act among the two levels of government sponsored tertiary institutions.
2. REVIEW OF LITERATURE
Tertiary institutions in Nigeria refer to the post-secondary section of the national education system which comprises of Universities, Polytechnics and Colleges of Education. Its contribution to the advancement of education and economic development of the nation cannot  be over emphasized (Okpareke, 2007). They are involved in the procurement of diverse
 
Ebenezer Olutide. Bamidele, Timothy O. Mosaku, and Olabosipo I. Fagbenle
 
http://www.iaeme.com/IJMET/index.asp 1433 editor@iaeme.com
construction projects for different purposes ranging from classrooms, offices, recreation, residences among others. Procurement processes in public organizations are done by rules, regulations and Acts. These regulations seek to check corruption and also to ensure that award of contract is based on competition and not on favoritism. This is because of the contribution of public procurement to the economic development of the nation. It constitute between 15-30% of the Gross Domestic Product, GDP (Transparency International, 2006). Public procurement is so significant that it cannot be over emphasized as it involves a very huge financial commitment. It accounted for about 20% of government expenditure globally (Mlinga, 2009). The practice of public  procurement dated back to 2400 and 2800 BC and has a great impact on economies of developed and developing nation and requires prudent management (Thai, 2009). Good governance has been traced to existence of clear and unambiguous procurement  policies and practices. This ensures a reduction of cost and timely results in government transactions. Poor practices on the other hand lead to waste and delays and are often the cause of allegations of corruption and government inefficiency (BPP, 2011). Efficient, effective and  professional application of public procurement regulations can contribute towards sound management of public funds (Hunja, 2003). Past government in Nigeria before the year 1999 experience periods of frauds, corruption and many unwholesome procurement practices. This was attributed to prolonged military rule and absence of statutory laws upon which public  procurement are based (Musa, Success & Nwaogu, 2014; Kareem,Asa & Lawal 2014 ). In attempt to address this issue, the Nigeria government established the Budget and Price
Intelligence Monitoring Unit (BMPIU) popularly called ‘Due Process’ in 2001 to implement
 public procurement reforms as one of the transparency pillars in the overall federal government economic reform programmes (BPP 2001). This name was later changed to Bureau of Public Procurement (BPP) with the enactment of Public Procurement Act 2007 (Kareem,
et al 
 2014). After the enactment of the Act the challenges remain that of compliance, however the questions remain as what are the likely causes of non-compliance with the Act among the tertiary institutions owned by the two levels of government and their attendant effects? The answers to these questions is expected to assist the two levels of government, the BPP as well as the two categories of tertiary institutions to achieve the objectives of the procurement Act and ensure good procurement practice. This study therefore seeks to provide the required solutions needed to achieve the objective.
3. RESEARCH METHODOLOGY
In order to achieve the objectives of this study a field survey was carried out. The study area consists of six states in the southwest Nigeria namely; Lagos, Ogun, Oyo, Osun, Ondo and Ekiti.. The population of the study comprises of two subjects namely; 44tertiary institutions divided into 17 Federal Tertiary Institutions (FTIs) and 27 State Tertiary Institutions (STIs) in southwest Nigeria and 44 completed building projects done by the institutions in the year 2016. The project with the highest value procured by each institution in 2016 was selected by  purposive sampling technique to make a sample size of 44 projects. Procurement officer of each institution who was either a builder, architect, engineer or quantity surveyor was adopted as the respondents of the study. To assess the causes of non-compliance with PPA, 2007 respondents were requested to indicate the scale that represented the effect of each cause of non- compliance with the Act in their institutions on a 5-point Likert Scale; very low = 1, low = 2, moderate = 3, high = 4, and very high = 5. Structured questionnaires administered to the respondents of the study and collected by trained research assistants were used as instrument for collection of data for the study. The instrument was first validated by lecturers in the Department of Building Technology, Covenant

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