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Poor procurement knowledge denies MSMEs access to govt contracts- Enoh

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Poor procurement knowledge denies MSMEs access to govt contracts- Enoh

By 4 min read

By Okeoghene Akubuike

Sen. John Enoh, Minister of State for Industry, says limited knowledge of procurement procedures and documentation requirements has prevented many Micro, Small and Medium Enterprises (MSMEs) from accessing government contracts.
Enoh said this at the unveiling of the MSMEs Public Procurement Training Programme and Digital Learning Portal in Abuja on Tuesday.

The News Agency of Nigeria (NAN) reports that the free online training portal by the Bureau of Public Procurement (BPP) is designed to equip entrepreneurs with the skills needed to participate effectively in public procurement.

The minister said many businesses lost contract opportunities, not because of poor products or services, but because of incomplete documentation and inadequate understanding of procurement processes.

According to him, the self-paced portal will provide training on bid preparation, compliance and technical requirements.

“It will also reduce travel costs and dependence on intermediaries while expanding opportunities for women- and youth-owned businesses and rural entrepreneurs,” he said.

The minister said MSMEs accounted for about 96 per cent of businesses in Nigeria, 87 per cent of employment and approximately 50 per cent of manufacturing activities.

He stressed the need to align procurement reforms with efforts to strengthen small businesses.

The minister recalled that the Federal Government had provided about N200 billion in intervention funds with approximately N75 billion allocated to MSMEs.

He, however, said it took the MSMEs about two years to access the funds due to missing documentation or misunderstood requirements.

Enoh expressed hope that the new portal would address some of these challenges.
He said the portal also supported the government’s policy of prioritising locally produced goods and services, which could create jobs, strengthen local industries and retain economic value within the country.

Enoh urged MSMEs to register on the portal and complete the training, while calling on procuring entities to publicise opportunities, divide contracts into manageable lots and ensure prompt payment to contractors.

He reaffirmed his ministry’s commitment to working with the BPP and other agencies to expand MSME participation in public procurement, adding that the portal’s success would depend on effective implementation and widespread adoption.

Speaking earlier, Nazaneen Ali, Regional Procurement Practice Manager, West and Central Africa Region, World Bank, said the portal’s success should not be measured only by registrations or numbers trained.

Ali said the most important question was what difference the training was making.

“First, monitor usage: who is registering, who is completing the modules, and whether different groups of businesses are being reached.

“Then look at outcomes: are trained MSMEs submitting more and better bids, winning more contracts, delivering, and growing and creating more jobs over time?”

Also, The Head of Civil Service of the Federation, Mr Abel Enitan, commended the BPP for the platform, saying it will be useful for retirees.

Enitan, who was represented by the Permanent Secretary, Mr Usman Kalba, said that retirees would have to key into the initiative because it would unlock potentials beyond imagination.

“It will not only improve the life of retirees, it will also boost the Nigerian economy.

“We are excited to see this partnership, and we thank our development partners for helping to bring the middle class back into the economy,” he said.

Dr Charles Odii, Director-General, Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), said public procurement was one of the largest, most reliable avenues for enterprises.

Odii said in spite of this, many nano and micro businesses still lacked information on entry requirements and processes.

“This portal is a practical step towards making government a more accessible market, and it aligns with the President’s Nigeria First policy.

“We count 39.65 million small and medium businesses. Imagine each one competing on favourable terms for government contracts,” he said.

Also, the Special Adviser to the President on MSMEs, Mr Temitola Johnson, said any serious-minded nation must make deliberate efforts to factor small businesses into policy.

Johnson said that the government had secured a fully private sector fund, adding that 50 per cent of it will be dedicated to the MSMEs training and learning portal.

NAN reports that the initiative was developed by the BPP with support from the World Bank under the Sustainable Procurement, Environmental and Social Standards Enhancement Project (SPESSE).(NAN)

Edited by Kadiri Abdulrahman

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