EXAMINING PROCUREMENT PRACTICES AS A VULNERABLE GATEWAY FOR ILLICIT FINANCIAL FLOWS: A CASE STUDY OF PROCUREMENT SYSTEM IN NIGERIA

Abstract

This study examined the procurement practices as a vulnerable gateway for illicit financial flows in Nigeria, focusing on the country's procurement system. The research design employed a qualitative approach, utilizing a case study methodology to investigate the procurement practices in Nigeria. The study relied on secondary data sources, including reports from the Bureau of Public Procurement, the Economic and Financial Crimes Commission, and Transparency International, as well as academic journals and articles. The study found that weak procurement practices, inadequate regulatory oversight, and corruption are significant contributors to illicit financial flows in Nigeria. The research highlights the need to strengthen procurement regulations, enhance transparency and accountability, and improve regulatory oversight to prevent corrupt practices and reduce illicit financial flows. The study's findings have implications for policymakers, regulators, and practitioners seeking to improve Nigeria's procurement landscape and reduce the country's vulnerability to illicit financial flows. Based on the findings, the study recommended strengthening procurement regulations, enhancing transparency and accountability, and improving regulatory oversight to prevent corrupt practices and reduce illicit financial flows. Specifically, the study recommends the establishment of an independent procurement regulatory body, the implementation of e-procurement systems, and the enhancement of whistleblower protection mechanisms. The study's findings and recommendations have implications for policymakers, regulators, and practitioners seeking to improve Nigeria's procurement landscape and reduce the country's vulnerability to illicit financial flows. The research methods used in this study included a review of existing literature on procurement practices and illicit financial flows in Nigeria, as well as an analysis of reports from relevant government agencies and international organizations. The study concludes by emphasizing that weak procurement practices, inadequate regulatory oversight, and corruption are significant contributors to illicit financial flows in Nigeria and corrupt procurement practices, such as bribery, embezzlement, and money laundering, are prevalent in Nigeria's public sector. Thus, suggesting the strengthening of the procurement regulations, transparency and improved regulatory body.