Nigeria: Procurement Knowledge Gap Shuts Small Businesses Out of Govt Contracts - Minister

What the report says

Nigeria’s small businesses are being shut out of federal government contracts because many lack a clear understanding of public procurement rules, according to Minister of State for Industry Senator John Enoh. He made the remarks in Abuja at the launch of the Micro, Small and Medium Enterprises (MSMEs) Public Procurement Training Programme and a digital learning portal run by the Bureau of Public Procurement (BPP).

Enoh said the main barriers include limited knowledge, weak internal systems and insufficient capacity to handle the steps needed to compete for contracts. He said entrepreneurs often struggle with registration, compliance, reading procurement documents, preparing bids and carrying out contract work. He also said some firms are disqualified because required documents are missing, and that the complexity of procurement rules raises costs and pushes businesses to rely on intermediaries.

The minister called on business associations to spread information about procurement opportunities and train members on bidding requirements. He also urged ministries, departments and agencies to simplify procedures, improve transparency and offer stronger support for small firms, including women-owned businesses.

BPP Director-General Adebowale Adedokun said MSMEs make up about 96% of businesses in Nigeria and contribute roughly half of GDP. He said the new portal will provide free training designed around Nigeria’s procurement system, highlighting the initiative as a way to widen access to public contracts and improve participation by smaller companies.