United States’ companies have expressed deep concerns and displeasure over what they described as widespread corruption and lack of transparency in Nigeria’s procurement processes.
This was contained in the latest report released by the 2025 National Trade Estimate Report on Foreign Trade Barriers from the Office of the United States Trade Representative (USTR).
The report highlighted persistent challenges faced by American businesses operating in Nigeria, citing inconsistencies in the application of procurement regulations and allegations of favouritism in the awarding of contracts by the Nigerian government.
“The Public Procurement Act of 2007 established the Bureau of Public Procurement (BPP) as the regulatory authority responsible for the monitoring and oversight of public procurement in Nigeria,” the report noted.
However, it pointed out that Nigerian government agencies often fail to adhere to procurement guidelines, including the required issuance of a “Certificate of ‘No Objection’ to Contract Award” before formalising procurement proceedings.
The report also criticized protectionist measures that limit competition, noting that under current rules, only majority Nigerian-owned companies are allowed to bid on procurements valued up to N100 million (approximately $64,000) for goods and up to N1 billion (approximately $640,000) for services and works.
While both Nigerian and foreign-owned firms can bid above these thresholds, U.S. companies report that opaque processes and hidden barriers continue to limit fair competition.
“Only majority Nigerian-owned companies may bid on procurements above N2.5 million (approximately $1,600 thousand), up to N100 million (approximately $64,000 thousand) for goods, and up to N1 billion (approximately $640,000 thousand) for services and works,” according to the report.
“Above those thresholds, both majority foreign-owned and majority Nigerian-owned companies may engage in competitive bidding.
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