Procurement knowledge gap shuts small businesses out of FG contracts — Minister

By Yinka Kolawole

Many small businesses in Nigeria are missing out on Federal Government contracts due to inadequate knowledge of public procurement procedures, Minister of State for Industry, Senator John Enoh, has said.

Enoh stated this in Abuja at the launch of the Micro, Small and Medium Enterprises (MSMEs) Public Procurement Training Programme and digital learning portal organised by the Bureau of Public Procurement (BPP), adding that limited knowledge, weak internal processes and inadequate capacity were hindering small businesses from competing effectively for government contracts.

He said many entrepreneurs lacked the skills to register, meet compliance requirements, interpret procurement documents, prepare competitive bids and execute government contracts. 

“Many businesses are excluded because of capacity constraints, limited knowledge, weak internal processes and insufficient capability,” the minister said.

Enoh added that some businesses were disqualified because of missing documents, while the complexity of procurement procedures further restricted their participation. 

He said the knowledge gap increased the cost of doing business and deepened small businesses’ dependence on intermediaries, stressing the need to give women-owned enterprises and other small businesses equal opportunities to compete. The minister urged business associations to publicise procurement opportunities and educate their members on bidding requirements. He also called on ministries, departments and agencies (MDAs) to simplify procurement procedures, improve transparency and strengthen support for small businesses.

Director-General of BPP, Adebowale Adedokun, said MSMEs account for about 96 per cent of businesses in Nigeria and contribute approximately 50 per cent of the nation’s Gross Domestic Product (GDP).

He said despite their economic importance, many face barriers to public procurement, including inadequate technical knowledge and difficulties navigating bidding requirements, adding that the digital learning portal would provide free training tailored to Nigeria’s procurement system.