Procurement: ‘Why We Are Seeking Amendment To CIPSMN Establishment Act 21 2007’

The recent public hearing on “a Bill for an amendment to the Chartered Institute of Purchasing and Supply Management of Nigeria establish­ment Act (CIPSMN) Act 2007 to be in tan­dem with what obtains, in the procurement professional practice across the globe and for related matters” (HR.346/2024) could not have come at a better time than now.

This is because professionalism means being a role model for politeness and good behaviours of manner to everybody by upholding the professional code of ethics, in performance of his/her duties, not just those you need to impress rather, to every­one.

Gone are the days when low caliber staffs that are not professionals are dumped in procurement and supply chain manage­ment field or department.

It is no longer a field, but a profession which requires organizations to be nur­tured by equipping it, with the appropriate quality and caliber of staff, that is strong, firm, diligent, excellent, and above all con­scientious.

Any nation or organization, which still blindfolds itself and think it saves money by employing just anybody, with complete head on his shoulder or low caliber per­sonnel is in a state of denial of reality and consequently, that particular organization or nation will keep on facing problems re­sulting in either blaming procurement and supply chain systems, policies, processes, procedures or personnel.

Therefore, procurement is made for cer­tified procurement professionals that, are versed in the intricacies of what it takes for the purpose of effective management of resources, which comprises of manage­ment, money, method, measurement, min­ute, market, ministry, material, manpower and machine.

Procurement and Supply Chain, like any other profession, requires people with human skills, technical skills, and concep­tual skills- this is a fact that, an objective observer can base their judgment as regard who is who.

We are talking about the personnel, who manage or handle the bulk of the nations/ organizations’ budgets/expenditure- re­search as indicated that, will manage a proportionate amount of between 70-75% of the firm’s expenditure or government budget at all levels, and this huge portion of fund, is utilised in the acquisition of goods, supplies, works and services through net­work of procurement and supply chain departments.

Therefore, if your country is still tradi­tional and stick to low caliber of untrained personnel, there is a need to advise correct­ly, that it deprives the nation and its citizens the benefit of best practice in procurement and supply chain, hence the CIPSMN re­solve to seeking for an amendment to its establishment Act so that, organizations and governments at all levels in Nigeria, will not be deprived of the nation’s bottom line.

The 15th of July, 2024 public hearing organised by the House of Representa­tives, Committee on Procurement for the CIPSMN Act amendment was with a great hope that the institute’s submission in terms, of benchmarking performance, re­suscitation and post mortem of all of us, that will bring a great benefit to Nigeria and Africa as a continent.

During the one–day Public hearing, the Chairman, Committee on Public Procure­ment, Rt. Hon. Unyime Idem, in his address to members of the House, representatives of CIPSMN, representatives of the various Ministries, Departments and Agencies, Procurement Practitioners recalled that, the House in plenary on Wednesday 28th February, 2024 considered a Bill seeking to amend the Chartered Institute of Purchas­ing and Supply Management of Nigeria Act 21 of 2007 to be in tandem with what obtains in the Procurement Professional Practice Across the Globe and for Related Matters (HB. 346).

Rt.Hon. Unyime Idem acknowledged that, the CIPSMN amendment Bill deserve a priority because of the important role it has played in the economic development and shaping professionals in the field of purchasing and supply chain management in Nigeria.

According to him, CIPSMN also played a role in developing high-standard profes­sional skills, ability and integrity among all those engaged in procurement practice.

Emphasising the need to amend the Act to be in tandem with global best practices, he reiterated the commitment of the House of Representatives Committee on Public Procurement to uphold the legal and insti­tutional framework for the enthronement of transparency, accountability, value for money and efficiency in the procurement of good, supplies, works, and services with­in Ministries, Departments, Agencies, and Parastatals as stipulated in the Public Pro­curement Act, 2007.

He further emphasised that strict adher­ence to the Law and due process compli­ance with the PPA 2007 is mandatory for all MDAs, to avoid legal repercussions and ensure the efficient and ethical utilization of public resources.

Reasons For Name Change in CIPSMN Establishment Act 21 of 2007

Among the numerous changes proposed in the CIPSMN establishment Act 21 of 2007, is the request for change in name from “Purchasing and Supply Management to “Procurement and Supply Chain Manage­ment’.

In the summary of his presentation for the proposed amendment to the Act, Dr Abdul Mamman, Coordinator of CIPSMN, North Central Zone, Abuja made reference to the Chartered Institute of Purchasing and Supply, UK that had effected a change of name and now being referred to as “Chartered Institute of Procurement and Supply, UK

According to him, in conformity to glob­al standards, the National Board for Techni­cal Education (NBTE) has equally, changed a Course of Study known as “Purchasing and Supply Management” in the Polytech­nics and other Higher Institutions in Ni­geria to “Procurement and Supply Chain Management”

He said: “The Professional training offered by the Chartered Institute of Pur­chasing and Supply Management of Ni­geria is aimed at crowning the capacity and capability of her Graduates to as a matter of fact, face the demand in not just Procurement but rather, in Supply Chain Management functions too, for a minimum duration of two years as a graduate from relevant field of study and depending on once performance. There is no more any course of study, designated as “Purchas­ing and Supply Management” anymore due to the power of strategic thinking and changes as regards this specialised field of study”.

The proposed change in name is sought for the main purpose of engendering good procurement practice in Nigeria and in line with what obtains in global best practices.

A “Purchasing and Supply Professional” as captured in the interpretation section of the institute’s establishment Act, means any qualified member who is, into practice or employed by any organization, ministry, corporation and engaged in purchasing, supply, procurement, stores, logistics, ma­terials or warehouse management.

“Supply Chain Management” denotes the general coordination of activities that involve procurement, purchasing, stores, warehousing, logistics, materials and sup­ply management.

Dr Abdul Mamman, further empha­sised, the urgent need for the various amendments to the CIPSMN Act 2007, saying the “New Hope Agenda” of the Current Administration under President Bola Ahmed Tinubu (GCFR) can be swiftly achieved through, efficient and effective management of scarce resources in the realm of good spend management princi­ples and reduction in Procurement Related Corruption which he said, have crossed a figure amounting to N2.9trillion as revealed by the Chairman, Economic and Financial Crimes Commission (EFCC), when he ap­peared before the Senate of the Federal Re­public of Nigeria, as reported in the media.

Dr. Mamman appealed to the Rt.Hon. Un­yime Idem led- House of Representatives, Committee on Public Procurement to ap­prove the request for change of name from Chartered Institute of Purchasing and Sup­ply Management of Nigeria to ‘Chartered Institute of Procurement and Supply Chain Management of Nigeria in line with global best practices.

“Every Civil Servant in Nigeria that is engaged in Procurement and Supply Chain functions must undergo, the professional training and certification offered by the Chartered Institute of Purchasing and Supply Management of Nigeria, to become member, as a requirement for developing a full professional career path in procure­ment and supply chain management.

“The institute should be accorded the same recognition as done to other estab­lished, professional institutes in Nigeria, especially, in the fields of Accounting, En­gineering, Teaching and Law profession (ICAN or ANAN, COREN, TRCN and Law School) respectively, and all these are aimed at maintaining standard of practice and in consonance with the global best practices,” Mamman appealed to the Committee.

According to him, the World Bank had been at the forefront of government efforts towards reform in Procurement and Con­tract Management in Nigeria.

All these were embedded in the Coun­try Procurement Assessment Report (CPAR 2000) and presented to the Federal Govern­ment in the year 2000 with a demand to professionalise the procurement function in Nigeria and allow these professionals to practice their profession with a view to enhancing the capacity and recognition of members of the institute in the practice of procurement and supply chain manage­ment in Nigeria.

At the hearing, Dr Mamman raised ob­jection to the presentation made by the Bureau of Public Procurement (BPP) rep­resented by the Director of Civil Infrastruc­ture, Mallam Nasir Bello.

He objected to the Bureau’s position and claims that, if such amendment is granted, it will create conflict in the discharge of the BBP’s duties. This is because, the Bu­reau of Public Procurement (BPP), cannot act, as an operator and regulator of public procurement process and neither, is the Bu­reau of Public Procurement (BPP) estab­lished as an institute, nor has it the power to certify procurement professionals.