Fiscal Responsibility Act (2007)

The Fiscal Responsibility Act came into force on 30th day of July 2007, it is made as an Act to
provide for prudent management of the nation’s resources, ensure long term macroeconomic
stability of the national economy, secure greater accountability and transparency in fiscal
operations within a medium-term fiscal policy framework, and the establishment of the Fiscal
Responsibility Commission to ensure the promotion and enforcement of the nation’s economic
objectives and for related matters.

Fiscal Responsibility Commission

The Fiscal Responsibility Act, 2007 (as amended by Fiscal Responsibility Act, 2010) established
the Commission to carry out the following functions, among others:

(a) Monitoring and enforcing the provisions of the Act, thereby promoting the economic
objectives of the nation.

(b) Disseminating standard national and international practices that will ensure greater efficiency
in the allocation and management of public expenditure, revenue collection, debt control and
transparency in fiscal matters.

(c) Undertaking fiscal and financial studies, analysis and diagnosis and disseminating the result
to the general public.

(d) Make rules for carrying out its functions under the Act

(e) Perform any other function consistent with the promotion of the objectives of the Act

The Commission consists:

(a) A chairman, who will be the chief executive officer and accounting officer of the
Commission.

(b) One member representing;

(i) Organized private sector;

(ii) Civil society engaged in causes relating to probity, transparency and good governance; and
(iii) Organized labor.

(c) A representative of the Federal Ministry of Finance, not below the rank of a Director; and

(d) One member to represent each of the six geo-political zones.

Powers of the Fiscal Responsibility Commission

The Act empowers the commission to, among other matters:

(a) Formulate and provide general policy guidelines for the discharge of the Commission’s
functions

(b) Superintend the implementation of policy guidelines

(c) Appoint employees to ensure proper and efficient performance of its functions

(d) Determine the terms and conditions of service of employees and fix them remuneration,
allowances and benefits;

(e) Do other things, which in its opinion are necessary to ensure the efficient performance of the
functions of the commission; and

(f) Regulate its proceeding and make standing orders with respect to the holding of its meetings,
notices to be given, the keeping of minutes of its proceedings and such other matters as the
commission may, from time to time determine

Public Procurement Act, 2007

This is an Act which established the National Council on Public Procurement (NCPP) and the
Bureau of Public Procurement (BPP) as the regulatory authorities responsible for monitoring and
oversight of public procurement, harmonizing existing government policies by regulating, setting
standards and developing the legal framework and professional capacity for public procurement
in Nigeria. The Act sets standards for organizing procurements, methods of procurement of
works, goods, consultancy and non-consultancy services as well as procurement approval
thresholds for the bureau of public procurement, tenders’ boards and accounting officers for all
ministers, departments and agencies.

The public procurement act ,2007, established the national council on public procurement;

The council consists of the following;

(a) Minister of Finance, as Chairman.

(b) Attorney-General and Minister of Justice of the Federation.
(c) Secretary to the Government of the Federation.
(d) Head of Service of the Federation.
(e) Economic Adviser to the President.
(f) Six part-time members representing:
(i) Nigerian Institute of Purchasing and Supply Management;
(ii) Nigerian Bar Association;
(iii) Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture;
(iv) Nigerian Society of Engineers;
(v) Civil Society;
(vi) The media; and
(vii) Director- General of the Bureau who shall serve as the Secretary
to the Council
Objectives of Bureau of Public Procurement (BPP)
The Public Procurement Act, 2007, established the Bureau. Its objectives include:
(a) Harmonization of existing government policies and practices on public procurement and
ensuring probity, accountability and transparency in the procurement process;
(b) establishment of pricing standards and bench marks;
(c) ensuring the application of fair, competitive, transparent, value for money standards and
practices for the procurement and disposal of public assets and services;
(d) Attainment of transparency, competitiveness, cost effectiveness and
professionalism in the public sector procurement system.
Functions of Bureau
The Bureau’s functions as stated by the Act include:
(a) Formulating the general policies and guidelines relating to public sector
procurement for the approval of NCPP;
(b) Publicizing and explaining the provisions of the Act;
(c) Certifying Federal Government procurement prior to the award of the contract;
(d) Supervising the implementation of established procurement policies;
(e) Monitoring the prices of tendered items and keeping a national database of standard prices;
(f) Publishing the details of major contracts in the procurement journal

Fundamental principles of public procurement

All public procurements must be conducted:
(a) Subject to prior review of thresholds set by the Bureau.
(b) Based only on procurement plans supported by prior budgetary provisions/appropriations and
a “Certificate of `No Objection’ to Contract Award” from the BPP;
(c) By open competitive bidding;
(d) In a transparent, timely and equitable manner which will ensure accountability and
conformity with the Act;
(e) With the aim of achieving value-for-money and fitness for purpose;
(f) In a manner which promotes competition, economy and efficiency;
(g) In accordance with the procedures laid down in this Act and as may be specified by the
Bureau from time to time.