Effects of Political and Cultural Interference on Procurement Process among Selected Lagos State Ministries and Vendors
- Olabode Segun Oluwaseun
- Daniel Deborah Damilola
- 5269-5290
- May 17, 2025
- Project Management
Effects of Political and Cultural Interference on Procurement Process among Selected Lagos State Ministries and Vendors
Olabode Segun Oluwaseun Phd., Daniel Deborah Damilola
Department of Project Management Technology, Lagos State University
DOI: https://dx.doi.org/10.47772/IJRISS.2025.90400379
Received: 29 March 2025; Accepted: 10 April 2025; Published: 17 May 2025
ABSTRACT
The peculiarity of the public procurement process in developing countries have been characterized by corruption and other shady act. Though, some of these corruption in Nigeria could be traced to interference from top level management but past studies is yet to identify if political and cultural influence played a major role in the solicitation process and contract administration. This study examined the effect of political and cultural interference on the procurement process in term of solicitation and contract administration among selected companies and Ministries in Lagos State. Survey research design was adopted for this study while convenience sampling technique was employed in selecting four Ministries and three vendors. Data was gotten from primary source by use of structured questionnaire. The reliability test was 0.939. To test for relevant hypotheses, regression analysis was used. The study found out that political interference influence solicitation and contract administration by 50% and cultural interference by 29% approximately. It was therefore recommended that management and procurement department of the selected ministries and organization should ensure the enforcement of the policies in The Federal Government of Nigeria public procurement Act 2007 guideline which involves transparency, accountability, probity and non-discrimination in the award of contracts to reduce political interference in solicitation and contract administration, top management of the procuring entities should ensure that all organs involved in the procurement function operate independently and without interference, Professionals that are certified and well trained in the field of procurement should be engaged in managing procurement activities for the organization and institutions, The regulatory bodies should offer proportional punishment to institution and individuals that breaks the procurement Act, to repel others from breaking procurement Act, procurement documents language should be what is generally accepted and understood by all so not to hinder effective communication between contracting officers and potential bidders from different cultural backgrounds and the regulatory bodies should ensure that Ethnicity and religion should not determine appointment, job allocation, contract award and other gain that should be as a result of competency.
Keywords: Contract administration, Cultural interference, Political interference, Procurement process, Solicitation administration
BACKGROUND TO THE STUDY
An important aspect of project management that needs proper examination is procurement process, this is to overcome the challenges that may occur during each stage of the project. Problem can occur to the entire project if there is failure to effectively manage procurement process (Jacob, 2022). According to Jacob (2022), the act of obtaining all the materials and services that are required for the project is defines as procurement. On the other hand, the act of ensuring that the ordered goods and services are received on time and within budget to ensure successful project execution is refer to as project procurement processes.
Public procurement is the process of acquiring goods, and services needed for public projects implementation by the governments and other publicly funded entities. In African countries public projects accounts for at least 15% or more of the world’s gross domestic product (GDP) (World Bank, 2015). Public procurement is viewed in Nigeria as one of the major government activities which generates important financial resources. In 2007, Federal government of Nigeria promulgated the public procurement Act and was further amended in 2018 to reflect the realities on ground. This is with the view of bringing sanity and conformity to public procurement by setting up bodies and principles that harmonizes the public procurement process and activities (Kanu et al, 2020).
Mohammed et al. (2022) opined that the reason for setting up public procurement and the enactment of public procurement Act 2007 was to make public procurement processes more professional, efficient, and effective. This organization is to ensure compliance to transparency, accountability, and value for money in the procurement of goods, works and services, both for project planning and implementation. Mohammed et al (2022) states that, the Nigeria public procurement and award of contract has been identified as one of government activity most vulnerable to corruption. He further identifies some of these corrupt activities as unnecessary project fragmentation, initial bids inflation and over invoicing, gross change orders during project execution, adoption of inappropriate procurement methods, proliferation of incompetent contractors, poor project documentation, and a general lack of transparency in the tendering process despite the presence of the public procurement policy. These shows that there is a poor implementation of the policies. This poor implementation of policies has translated to cost overrun, time overrun, poor financial control, project delay, poor work quality, improper contract determination, abandonment of public buildings, legal disputes.
Yussuf (2023) identified the following as some of the factors that contributed to poor procurement performance and they are lack staff competence, ineffective monitoring mechanisms, poor procurement planning, political interference etc. Yussuf also observed how political leaders used their office to interfere with the procurement process for their personal interest in violation of stated recognized administrative and project processes. This is what Yussuf referred to as Political interference. It was revealed that, there are many ways politicians interfere with the procurement process, and this always leads to negativity of the procurement process which in turn has effect on both the social and economic development of the society. Majority of citizens in many developing countries will be unable to get important social services because of corruption and malpractices caused by politicians’ interference.
Kuruppu (2021) states that political interference in the procurement process is one of the main reasons for procurement malpractice in some regions of the world.
Therefore, this study tends to determine how political and cultural interference affects the procurement process in Lagos State.
Statement of the Problem
In both public and private sector, procurement practices are key functions in the sense that it is a critical part of open spending in organizations (Mena, Van & Christopher, 2018). Several studies such as Chimene et al. (2022), Silas and Sammy (2022), Afolabi et al. (2022), Yussuf (2023), Kanu et al. (2020) have examined both public and private sector procurement processes and their effects on the performance system. However, the peculiarity of the public procurement process in developing countries have been characterized by corruption and other shady act as stated by Kanu et al. (2020) and Nyiraneza (2023). Though researchers like Kanu et al. (2020), Morakinyo et al. (2020) and Chikwere at el. (2019) identifies the depth of corruption in public procurement process in Nigeria.
This study observed that it is not peculiar to only Nigeria but rampant in other developing countries as noted by Nyiraneza (2023) whose study area was in Rwanda and Yussuf (2023) whose study area was in Tanzania. Though Kanu et al. (2020) shows that some of these corruption in Nigeria could be traced to interference from top level management but it fails to identify if political influence could play a major role in the solicitation process and contract administration.
Also, the cultural orientation differs among societies (Shahab, 2016). With Nigeria having over two hundred and fifty ethnic groups (Ojo, 2022). However, stakeholders like Shahab (2016) observed how cultural interference had influence the choice of vendors and administration of the contract in their system. But there is a dearth of information on how culture influence procurement process in Nigeria. Thus, this study seeks to determine how political and cultural interference affects procurement process in public sector in Lagos State.
Objectives of the Study
The main objective of this study is to examine the effect of political and cultural interference on procurement process in the public sector in Nigeria. However, the specific objectives are to:
- Examine the effect of political interference on solicitation and contract administration.
- Determine the significant of cultural interference on solicitation and contract administration.
Research Questions
To guide the study and achieve the objectives of the study, the following research questions were formulated:
- How does political interference affect solicitation and contract administration?
- What is the significant of cultural interference on solicitation and contract administration?
Research Hypotheses
H01: Political interference has no effect on solicitation and contract administration.
H02: Cultural interference has no significant effect on solicitation and contract administration.
Significance of the Study
Procurement is an important and expensive business activity for organizations. One of the responsibilities of the government is to ensure that resources are used in the most efficient and effective way to improve the economy (Nyiraneza, 2023). The study will be of importance to Lagos state government parastatals, departments, ministries, agencies (Those that partakes in projects and procurement process) and the citizen to know the extent to which political and cultural interference affects procurement process.
Scope and Delimitation of the Study
Though, there are more than two processes in procurement management, this study limits it to both solicitation and contract administration because this are the two major processes that are involved in external interference.
Also, the focus of attention was limited to selected ministries in Lagos State and vendors and are selected through convenience sampling techniques because they are approachable and ready to fill the questionnaire.
LITERATURE REVIEW
This section involve the review of existing studies pertaining to the research study. It consist of the conceptual review (definition of variables and indicators according to school of thoughts) and theoretical review (models and theories underlying the research study), empirical review (methodological review of studies pertaining to the topic under study), and conceptual framework illustrating connection between variables and indicators.
Conceptual Review
Political Interference
Political interference, as cited in Yussuf (2023) is a situation whereby political leaders use their office to interfere with the procurement process for personal interest. Batalla et al. (2018) delineate political interference as actions by politicians, especially the appointed or elected ones, to influence or enact their will in violation of suitably recognized administrative and project processes and notions of propriety. According to studies, politicians interfere with the procurement process in a variety of ways and to varying degrees; however, all ways usually result in negative consequences for the procurement process, which definitely impedes the society’s planned social and economic development (Chikwere et al., 2019). Scholars show that the majority of citizens in many developing countries suffer from not getting important social services due to corruption and malpractices caused by politicians through the procurement process (Gray, 2015; Sarawa & Mas’ud, 2020).
Political interference in the procurement process, according to Kuruppu (2021), is one of the main reasons for procurement malpractice in some regions of the world. Authors from Malaysia and the United States of America (USA), Hui et al. (2011) and Goldman et al. (2013), respectively, provide a crystal-clear example of how politicians affect the procurement process and its overall outcome. The allocation of government contracts in the United States of America is influenced by political boards connected to the major political parties (Goldman et al., 2013). In Malaysia, politicians frequently meddle in the procurement process to further their own interests (Hui at el., 2011). According to the study, politicians influenced the creation of laws governing procurement that made it possible for it to take place with little oversight (Titl & Geys, 2019). Additionally, politicians influenced the procurement process by hiring and firing procurement professionals, appointing people who support political leadership to important positions, and ensuring that businesses connected to them profit from the procurement process (Charron et al., 2017; Knack et al., 2019). According to David-Barrett and Fazekas (2019), political connections in public procurement are also visible in scandals. They cited an example in which the son of Hungary’s Prime Minister’s company won 19 tenders in a short period of time and was the only bidder on at least eight occasions, even though there were 10-12 experienced suppliers. Some scholars argued that giving politicians control over appointment and promotion decisions undermines administrative checks and balances, which would otherwise prevent or detect corrupt activity (Brunette et al., 2019).
In Africa, as in other parts of the world, there is a lot of mismanagement in the public procurement process, which ultimately prevents value for money from being obtained from the purchased goods, works, and services (Sarawa & Ma’sud, 2020). Also, Adjepong and Anane (2022) claimed that political interference influenced procurement planning at Kumasi Metropolis, Ghana, by ensuring that the procurement projects are carried out at a time when politicians are likely to benefit from the procurement. According to Myeza et al. (2021) political interference has an impact on public procurement violations in South Africa and prevents the procuring entities from achieving their intended goals.
According to Basheka (2011), politicians in Uganda influence procurement procedures by ensuring that their preferred businesses or allies win contracts. Furthermore, Tukamuhabwa (2012) in Uganda, as cited in The Monitor (2010) argued that numerous political figures, particularly government ministers, have been linked to high-value procurement-related scandals such as the US$550 million Bujagali Dam hydroelectric project (Prayas Energy Group, 2002), the CHOGM Summit, where 1.6 billion Ugandan shillings was lost in shady deals, the Global Fund scandal, and influence peddling in the Temangalo purchase. Furthermore, as revealed by Badaso (2014), politicians interfered significantly with the effective implementation of procurement policies in Kenyan state corporations.
In Tanzania, as in other developing countries, the procurement function is also not without political interference (Gray, 2015; Matto, 2021). Muhoja and Mkulu (2020) argued that politicians interfere with the procurement process through supplier selection. The author claims that political leaders have their companies and their allies; therefore, they use their influence to ensure that contracts are awarded to them or their allied companies. The two most common scenarios where political figures interfered with the procurement process are the Radar and Richmond sagas (Gray, 2015). In the Richmond saga, the energy minister and prime minister interfered with the tendering process by giving ministry of energy officials instructions to award the contract for emergency power supply to Richmond Development Company Limited (Richmond), despite the fact that the tenderer had been disqualified for failing to meet the contract’s requirements (Matto, 2021).The amount of money lost in these two cases is significant, and it could have been used to build health centers, schools, and even purchase medicine, which the majority of citizens desperately need because they are living in abject poverty (Gray, 2015). Similarly, David (2022) argued that political interference affects procurement auditing by Tanzanian local government authorities. The author in the study contribution of internal audits on the effectiveness of procurement assignments in Tanzania’s Local Government Authorities (LGAs) stated that the internal audit has to be independent regardless of whether it is established by legislation or it is accountable to top management; and whether it reports to both top management and those charged with governance. Independence in this sense means being freed from external influence so that internal audit activities in procurement processes can be undertaken smoothly without any fear or favour (David, 2022).
In Nigeria, Morakinyo et al. (2020) argued that politician interference affects the effective implementation of Public Procurement Policy in Kaduna State. While, in the same vein Chikwere at el. (2019) argued that politicians occasionally interfere with the budget allocation and implementation of organizations’ procurement plans. The study further constitute proof of politicians allocating sufficient funds to specific projects that have political benefits and implemented in strategic political locations.
Cultural Interference
Karen (2023), explained the meaning of culture as a collective norms, beliefs, and behaviors shared by individuals in a community or group. Culture gives individuals the following a sense of who they are, how they should behave, and what they should be doing, therefore, impacting the individual’s behavior, morale, and attitudes. When looking at different countries, it is difficult to generalize for the entire region because within each region there are a variety of cultures.
Culture encompasses shared beliefs, values, practices, customs and artifacts that characterize a group or society, including language, religion, social organization, arts and technology (Mohammed, 2023).
Mohammed (2023), defines culture as a multifaceted phenomenon encompassing the following dimension material, symbolic, behavioral and cognitive. Material culture refers to tangible expressions of a society’s identity, such as its buildings, clothing, technology and food. Symbolic culture encompasses the non-material aspects of culture, including language, beliefs, values, norms and social duties. Behavioral culture encompasses the observable patterns of behavior that are characteristic of a society while cognitive culture refers to the mental models, knowledge systems and worldviews that shape the individual and collective identity. Understanding these different dimensions is crucial for promoting cross-cultural understanding and cooperation, and for analyzing complex interactions between societies and nations.
Cultural interference refers to the impact of cultural differences on various aspects of business operations, including solicitation and contract administration. Cultural interference can significantly impact solicitation process in several ways. Firstly, language barriers may hinder effective communication between contracting officers and potential bidders from different cultural backgrounds (Komakech, 2016). Stakeholders like Olakunle (2023) observed the huge extent Ethnicity and religion determine appointment, job allocation, contract award and other gain that should be as a result of competency in Nigeria. Olakunle concluded with the statement
“Ethnicity often led to crisis of a great magnitude that always shook the foundation of the country. Majority of people do not consider Nigeria as a nation but a country because of ethnicity”.
Thus, misinterpretation of requirements or instructions based on cultural preference can lead to misunderstandings and ultimately affect the quality of proposals received (Deaton & Cartwright, 2018). Moreover, cultural differences in business practices and negotiation styles can create challenges during the solicitation process (Ferraro & Briody, 2017). For instance, some cultures may prioritize building personal relationships before engaging in business transactions, while others may focus on formalities and contractual obligations. Failure to understand and adapt to these cultural nuances can result in strained relationships, reduced competition, and limited access to potential contractors.
Similarly, cultural interference can significantly impact contract administration phase, leading to various challenges. Firstly, cultural differences in work ethics and attitudes towards deadlines may affect the timely delivery of goods or services (Crane et al., 2019). For instance, some cultures may have a more relaxed approach to deadlines, while others prioritize punctuality. This can lead to delays and potential breaches of contract. Additionally, cultural differences in communication styles and decision-making processes can hinder effective contract administration (Kerzner, 2022). Some cultures may have a hierarchical approach to decision-making, requiring approvals from multiple levels of authority, while others may have a more decentralized decision-making structure (Bulthuis et al., 2021). Failure to understand and adapt to these cultural differences can result in miscommunication, delays in decision-making, and potential disputes (Sokro & Agbola, 2021).
Procurement Process
Public procurement is a prominent function for any government. It is concerned with the acquisition of goods, works, or services that organizations require (Yusuff, 2023). It accounts for average 29% of total general government expenditure in the Organization for Economic Co-operation and Development OECD countries (OECD, 2019), and closer to 50% of public spending in developing countries (David-Barrett & Fazekas, 2019). Due to the huge amount of public funds the governments have implemented numerous reforms to ensure efficiency and value for money (Odhiambo & Kamau, 2023). For instance, the governments have adopted the electronic procurement system, enacted the public procurement act and its regulations from time to time, established various organs to monitor the procurement function, and undertaken internal and external auditing periodically (Masoud et al., 2021: Torvatn & de Boer, 2017).
Despite government efforts, procurement performance is not impressive (David-Barrett & Fazekas, 2019; Masoud et al., 2021). The procurement process is associated with project delays, poor quality work, overpriced goods, corruption, malpractice, and the misappropriation of scarce public funds (Myeza et al., 2021). Because of the poor performance of the public procurement function, many scholars have been drawn to study in this field in hopes of finding the reasons for this misfortune and make constructive recommendations to minimize the tendency of poor performance (Basheka, 2011; Marendi, 2015). The scholars revealed many factors that contributed to poor procurement performance, for instance, lack of staff competence, ineffective monitoring mechanisms, poor procurement planning, political interference, and alike (David-Barrett & Fazekas, 2019; Basheka, 2017; Rendon & Rendon, 2016).
Solicitation Administration
The process of seeking information, proposals, and quotations from suppliers, contractors or consultants is refers to as solicitation, if the process is formalized as written or electronic document it will bring about quality, consistency, and commitment. Though solicitation can be verbal, but it must be further translated to written documents for documentation purpose (Rajesh, 2022).
Rajesh (2022) stated the types of documents needed for solicitations and are as follows.
- Request for Quotation (RFQ)
- Request for Bids (RFB)/ Invitation to Bid (ITB)
- Single Stage One Envelope
- Single Stage Two Envelope
- Two Stage Bidding
- Request for Proposal (RFP)
- Request for Expression of Interest (REOI)
There is a stated criteria in the bid document. Contract is awarded to the contractor, supplier, or service provider who meets the criteria, the tender document is expected to state very clearly the criteria that need to be considered in the evaluation of the tenders, the criteria involve are preliminary, technical, and financial stages. It is observed that the award of contracts is based on suppliers and contractors’ ties to the political parties in power at the time and received more tenders compared to opposition side companies (Yussuf, 2023).
As stated by Pastory (2019), some of the things he observed about politicians interfered with the procurement process are disobedient to the requirements to advertise tenders, conduct competitive procurement, obtain approval from the tender board, and sign procurement contracts.
Beauty and Modeni (2022) highlighted some of the challenges that occur because of political influence on contracts and tenders, and they are late service delivery, noncompliant with contracts agreement, delay decision making and unprocedural awarding of tenders and contract to ill-capacitated individuals who fail to deliver as per expectations of the contracts.
Alouis et al (2022), identifies some of the challenges faced in conducting tendering process and they are corruption, political Interference, lack of ethical and professional conduct, preferential treatment, delayed ICT adoption, Non-compliance (awarding contract to specific individuals and businesses without even completing the tendering process) and bureaucratic red tape.
Komakech, (2016), Deaton and Cartwright (2018) and Ferraro & Briody (2017) gave insight on how cultural interference can affects solicitation and they are language barriers which may hinder effective communication between contracting officers and potential bidders from different cultural backgrounds, Misinterpretation of requirements or instructions can lead to misunderstandings and ultimately affect the quality of proposals received, cultural differences in business practices and negotiation styles can create challenges during the solicitation process.
Contract Administration
Gunduz and Elsherbeny (2020) explained contract administration as the act of achieving project goals and objectives as stated in the contracts force through a series of coordinated activities. If the administration process is poorly carried out it can lead to poor project performance, though the process is complex. The focus of contract administration is on obtaining supplies and services of requisite quality on time and within budget. The specific nature and extent of contract administration varies from contract to contract. The nature of the work, the type of contract, experience and commitment of personnel involved are stated as some of the factors influencing the degree of contract administration (Anjay, 2021).
Contract administration includes seven (7) general processes as stated by contract management handbook by University of Texas System as follows planning, monitoring performance, change management, payment approval, dispute resolution, termination, and contract close-out. The primary tasks of contract administration include verification of performance for purposes of payment, identifying any material breaches of the contract, determining if corrective action is necessary and acting, if required; and development of a completion plan for contractor exit requirements, including acceptance of the goods/services, final payment, and contract close-out (The University of Texas System, 2022).
Beauty and Modeni (2022) opined that it is difficult to separate politics from public service operations because some of the key officials that are contract administrators in public procurement are political appointees, they pay less regards to their contractual mandates and are more committed member to their political party policies.
Normally, the contract is awarded to the contractor, supplier, or service provider who meets the criteria that have been stated in the bid document (United Republic of Tanzania, 2011). The tender document is required to state very clearly the criteria that need to be considered in the evaluation of the tenders. The criteria are for the preliminary, technical, and financial stages (United Republic of Tanzania, 2013). However, studies show that on occasion, politicians tend to interfere with the procurement process by ensuring their companies or their allies win the tenders without considering whether the company meets the criteria set for the evaluation (Hui et al., 2011). Other scholars, like Goldman et al. (2013) contended that the suppliers were awarded contracts based on their ties to the political parties in power at the time. The study insists that many companies which supporting parties which are in power for a given period are received more tenders compare to opposition side companies. In the same vein, Pastory (2019) illustrated how politicians interfered with the procurement process by disobeying the requirements to advertise tenders, conduct competitive procurement, obtain approval from the tender board, and sign procurement contracts. Similarly, Yusuff (2023) revealed that political interference in contract awarding, as well as the development and implementation of legal frameworks, has a negative impact on procurement performance. This means that when politicians interfere with contract awarding and the implementation of legal frameworks in the procurement function, performance suffers.
Matto 2021, identifies some challenges faced as a result of awarding contracts to companies based on political interference and they are poor execution of project, lack of facilities, expertise, equipment, machinery, or manpower required to complete the project. Which will result to failure in obtaining value for money, schedule and quality (Chikwere et al., 2019; Masoud et al., 2022).
Researchers like Crane et al (2019), Kerzner (2022) and Bulthuis et al. (2021) gave some highlight on how cultural interference can affect contract administration and there are through work ethics and attitudes to work which may affect the timely delivery of goods and services, communication styles and decision-making processes, hierarchical approach to decision-making, approvals from multiple levels of authority, others may have a more decentralized decision-making structure. Failure to understand and adapt to these cultural differences can result in miscommunication, delays in decision-making, and potential disputes.
Conceptual Framework
Figure 2.1: Conceptual framework explaining the relationship between political interference, cultural interference and procurement process (Solicitation and Contract administration)
Source: Researcher’s model (2023)
The framework explained that the relationship between the independent variables which are political and cultural interferences and the dependent variables which are solicitation and contract administration.
According to researchers like Boatemaa-Yeboah and Tamakloe (2019); Chikwere et al (2019) and Nuertey et al. (2018), they explained the involvement of politicians in solicitation and contract administration by ensuring that their companies or their allies wins the tenders, or by influencing the implementation of the procurement plan by directing at what time and place the procurement projects are to be executed so as to gain more popularity, or by influencing the employment of the procurement staff has high effects on public procurement. Therefore if politicians do not interfere in the procurement function it will operate better.
Researchers like Komakech, (2016), Deaton and Cartwright (2018), Ferraro & Briody (2017), Crane et al (2019), Kerzner (2022) and Bulthuis et al. (2021), explained cultural interference on solicitation and contract administration. The effect on solicitation is through language barrier which may hinder effective communication between contracting officers and potential bidders from different cultural backgrounds and this can be resolved by using language that are commonly accepted by all in communication and documents and contract administration through work ethics and attitudes to work which may affect the following; timely delivery of goods and services, communication styles and decision-making processes, hierarchical approach to decision-making, approvals from multiple levels of authority, others may have a more decentralized decision-making structure. This can result in miscommunication, delays in decision-making, and potential disputes. It can be resolved by stating what is expected in the contract documents which will identified methods of communication, delivery time etc. for everyone to know what is required of each parties.
Theoretical Framework
Stakeholder Theory
Freeman established the stakeholder theory in 1984, he defines the stakeholder as any group or individual who can affect or is affected by the achievement of an organization’s objectives. He categorizes stakeholders into four groups, which were suppliers, customers, investors, and employees. Also, Friedman and Miles (2006) define stakeholder to include media, the public, suppliers, government, regulators, political groups (politicians), trade associations, policymakers, and others who may have an impact on an organization’s goals. Organization interacts with many stakeholder groups. Politicians are an example of a non-contractual stakeholder group with whom an organization has an impact on its overall performance and survival.
The stakeholder theory illustrates the impact of stakeholder (politicians) involvement on organizational performance, and this occurs frequently in the public procurement process. Gray (2015), Nuertey et al. (2018), Chikerwe et al. (2019), and Matto (2022) indicates that politicians are more likely than other stakeholders to interfere with the procurement process given the enormous amount of money involved.
Public Interest Theory of Regulation
This was initially established by Arthur Cecil Pigou in 1932, and he stated that in response to public demand, regulation should be used for the correction of inefficient or inequitable market practices. This is the case because of the public interest theory (Hawkins, 2020). According to Hawkins (2020) stated that to achieve efficiency, regulations governing resource sharing need to be drafted in order to properly manage it.
It is suggested that government regulation plays a significant part in the process of developing efficiency by removing imperfect competition from the market (Thairu & Chirchir, 2016). Regulation from the state is one method that can be utilized to achieve efficiency in the distribution of resources (Shubik, 1970). Procurement policies should be put into action and this may involve implementation methods. It gives room for all a sundry to compete for contracts without receiving any special consideration during the procurement process (Simayi, 2005).
Public Value Theory
Moore (1995) states that public value theory is predicated on the idea that the primary objective of the government is to create something that the general populace views as beneficial to them. Two advocates of this theory, Williams and Shearer (2011), affirm that the theory benefits managers working in the public sector who despite being confronted with a large number of obstacles, are tasked with the responsibility of making procurement decisions that significantly improve the lives of the general public.
This first approach to the idea of public value is predicated on the hypothesis that value is created or generated because of the activities carried out by public institutions and the managers of those institutions (Benington & Moore, 2011). Procurement managers and personnel working under supervision control the bidding process, which in turn has an impact on the quality of both the items produced by suppliers and the services offered. However, procurement managers and employees should go above and beyond since they are obligated to avoid political decisions by focusing on what the public values (Silas & Sammy, 2022).
This study will be based on public interest theory of regulation and public value theory, because in general the priority of the public sector agencies is to gives room for all a sundry to compete for contracts without receiving any special consideration during the procurement process as stated by Simayi (2005) and also the public values should be of greatest priority according to Moore (1995) who stated that the primary objective of the government is to create something that the general populace views as beneficial to them.
Empirical Review
Yussuf (2023) conducted a research on the effects of political interference on procurement performance in the parastatal organizations in Dar es Salaam Region, the main reason is to investigate the impact of political interference on the contract award, project allocation, and legal framework implementation on procurement performance and make some recommendations for improvement, data were collected from heads of departments at 93 parastatal organizations in Dar es Salaam through structured questionnaire, The study’s population consisted of 712 respondents, with a sample size of 256 randomly selected, but only 241 questionnaires were returned, completed, and used for analysis, multiple regression was used for data analysis. The finding shows that political interference in contract award and legal framework implementation negatively influences procurement performance. In contrast, political interference in project allocation positively impacts procurement performance. The researcher recommended that the procuring entity should ensure that politicians were not involved in the procurement process and that only authorized officers were allowed to participate.
Alouis et al (2022) conducted a research on dynamics of patronage politics and the tendering process at Zimbabwe’s State procurement board. The magnitude of the impact was determined based on the administration of tender procedures, the permeability of governing frameworks, and the extent to which discriminatory politics obstructed tender awarding. Data was gathered through the use of questionnaires, interviews, and document analysis. 25 questionnaires were distributed, 15 interviews were conducted. The findings shows that transparency deficiencies in tendering processes have become widespread, shielding and snowballing tender corruption. The study makes several recommendations to alleviate the perpetuation of patronage politics, including effective and rapid ICT adoption to reduce human interface and its associated vices in tendering, detachment of political meddling as well as the implementation of punitive measures, and instilling integrity in the culture of tender processes to promote ethical and professional behaviours among bureaucrats involved in the tendering process, among others.
Gunduz and Elsherbeny (2021) conducted a research on critical assessment of contract administration using Multidimensional Fuzzy Logic Approach. The paper covers the development of a new multidimensional fuzzy model to quantify the performance of construction contract administration (CCA) processes at the project level. The proposed model contains 93 key factors and 11 project management process groups related to contract administration performance, data were collected through an online questionnaire to rate the importance of each factor and group, the study’s population consisted 223 responses from two construction projects in Qatar. The collected data were analyzed for normality, reliability, and intergroup differences. A two-part weighted fuzzy logic model was then developed to measure the CCA performance. The results indicate that change control management, financial management, and claims and disputes resolution management are the top process groups affecting the overall performance of contract administration. The study recommends that the contract administration organization establish further reasonable and practical performance indicators that would allow the contracting parties to track the overall project performance and establish action plans for underperforming areas.
Kelvin et al (2021) conducted a research on the impact of organizational culture on public procurement act compliance in Obuasi municipality in Ghana, the major reason of this research work was to appreciate how organizational culture impact on compliance with the Public Procurement Act in the Obuasi Municipality, data were collected from all members of the Obuasi Municipality’s staff and management, with an emphasis on the Municipal Assemblies. The study’s target group was personnel who were involved in all aspects of procurement through structured questionnaire, the study’s population consisted of 150 people working in the local government sector of Ghana, specifically Obuasi Municipality, multiple regression was used for data analysis. The finding concluded that organizational is a determinant of procurement Act compliance meanwhile socio-economic variables significantly predicts procurement compliance. The study recommends improvement in cultural practices in public institutions to enhance compliance with the Procurement Act.
Edmond et al (2020), conducted a research on procurement process risk and performance: empirical evidence from manufacturing firms. The paper employs the positivism paradigm, quantitative approach and explanatory research design. It analyses primary data obtained from manufacturing firms via structured questionnaires and uses the partial least square-structural equation modelling technique to establish the effect of individual procurement process risk on procurement performance. The findings shows that, five out of the six procurement process risks studied were found to be undermining procurement performance of manufacturing firms significantly. The results of this research imply that manufacturing firms’ procurement process is risk prone and the effect of risk surrounding each procurement process on procurement performance differs. Hence, the need to identify and analyse the risks surrounding each procurement process before making managerial decision to spend firms limited resources in response to the individual risk to improve procurement performance in the manufacturing sector. The study recommends that procurement managers should develop collaborative relationships with risk managers and key suppliers to frequently redesign or re-evaluate the procurement process to help eliminate possible risk at any stage; thereby, achieving better procurement performance and competitiveness.
Gap in Literature
Yussuf (2023), Adjepong and Anane (2022), Myeza et al. (2021), Muhoja and Mkulu (2020) all carried out their research in various countries such as Tanzania, Ghanaa and South Africa respectively and they all explained the political interference on contract award, project allocation, legal framework and procurement planning which can affects procurement performance.
Afolabi et al. (2022), carried out research in Nigeria but basically explained things that affects procurement methods in the Lagos construction industries and they include corruption, cost inflation, cost overrun, cumbersome prequalification and selection criteria, and project delays and delivery failures. Kanu et al. (2020) carried out research in Nigeria but basically explained the corruption in public procurement and traced it to interference from top level management.
Kerzner (2022), Bulthuis et al. (2021) and Crane et al., 2019, carried out research in Ghana, Uganda, Malawi and United Kingdom, they explained cultural differences in communication styles, decision-making processes, work ethics and attitudes towards deadlines, which can hinder effective contract administration.
Deaton & Cartwright (2018), Ferraro & Briody (2017), carried out research in United State of America and London explained cultural interference in terms of misinterpretation of requirements or instructions based on cultural preference, cultural differences in business practices and negotiation styles which can lead to misunderstandings and ultimately affect the quality of proposals received and can create challenges during the solicitation process.
From the above analysis, there is a dearth of information on how culture influence procurement process in Nigeria. This study therefore seek to determine how political and cultural interference affects procurement process in public sector in Lagos State.
Research Methods
This study identifies with the deductive approach and quantitative research. The reason is that this study starts with theory as a foundation and moves forward through hypotheses testing as observed in the work of (Phair & Warren, 2021). Moreover, the response of the respondents in public sector of Nigeria is needed to address the research questions formulated. This will be accomplished by implementing a research design.
Research Design
This study used a descriptive research design. The type of descriptive research design used is cross-sectional design this is because it involves the measurement of all elements of the population of interest and the sample of the survey at a point in time. Also, it is useful because it provides a quick snapshot of what is going on with the variables of interest in a research problem (Omotayo et al. 2016). This research design claimed to be more effective and accurate for seeking answers to the research questions (Abbott & McKinney, 2016; Nardi, 2018).
Population of the study
The population for this study were administrative staff in selected ministries and vendors in Lagos State. The choice of Lagos state as the study area was because it serve as the state with the highest number of construction works and also the economic nerve center of Nigeria and a place where construction activities abounds (Salau, 2016). The choice of the ministries is based on the fact that these ministries engaged more in construction works (Segun & Rasak 2023, Kehinde, 2023). The administrative staff were targeted staff that their judgment was paramount for this study. The Total targeted population for this study is 70 from both the ministries and vendors.
Sampling Technique and Sample Size
Sampling Technique
This study identified with non-probability sample techniques. It employed double sampling technique, which are purposive and convenience sampling technique. Purposive sampling techniques allows the researcher to select samples based on judgment or specific purposes, it is most suitable for small samples not all members of the population are qualified to be member of the sample. Convenience sampling was used to obtain those cases that are mostly conveniently available, it involve the use of respondent that are easy to get to constitute the sample (Omotayo et al. 2016). This respondent are willing and ready to complete the research instrument as carried out by the researcher.
Sample Size
In a bid to determine the sample size for the study, the researcher adopted the use of census techniques which is used for small population less than 200. Using entire population allows all element of the population to be considered and it removes sampling errors (Omotayo et al. 2016).
Data Collection Instrument
Data required for this study was generated from a primary source of information. The choice of a primary source is because, the two independent indicators in the specific objective- Political and cultural interference was measured by quantifying the perception of the respondents. The primary data source research instrument was a well-structured questionnaire distributed to respondents of the selected organizations.
The research instrument was divided into five sections. Section A shows the respondents biodata, Section B shows the independent variable which is political interference and it consist of eight items to measure solicitation and contract administration, Section C shows the independent variable which is cultural interference and it consist of seven items to measure solicitation and contract administration, Section D shows the dependent variable which is solicitation administration and it consist of seven items to measure the effect of political and cultural influence on solicitation administration, Section E shows the dependent variable which is contract administration and it consist of twelve items to measure the significant of political and cultural influence on contract administration. The items in this research instrument was adaptive from Yussuf 2023, Existing literatures were examined to ensure that the questions for the identified concepts/indicators are well structured and understandable for respondents to give their responses.
The responses were based on a five-point Likert scale measurement of strongly agreed, agreed, undecided, disagreed and strongly disagreed and were coded with numerical values for ease of analysis. The values assigned were 5 for strongly agreed (SA), 4 for agreed (A), 3 for undecided (UN), 2 for disagreed (D), and 1 for strongly disagreed (SD) (Pallant 2011).
Test of Validity and Reliability of the Research Instrument
To ascertain the correctness of the survey instrument content types of validity were adopted. Content validity was employed through the administration and distribution of the developed survey instrument which was reviewed by my supervisors to ensure it reflects what it was expected to measure before distribution to the targeted respondent.
To test for reliability of this study’s research instrument, the Cronbach’s alpha coefficient was used with value given as 0.939.
Cronbach’s Alpha | N of Items |
.939 | 34 |
Source: Field Study, 2023
The reliability test of the examined studies is given as 0.817, 0.907, and 0.911. This implies that this instrument is best for this research study.
Method of Data Analysis
The result given are presented in descriptive and inferential statistics. Furthermore, regression analysis was used to test the formulated hypotheses to verify the effect of political and cultural interference on procurement process in the public sector in Lagos State. The data collected were analyzed using the Statistical Package for Social Sciences (SPSS) software version 24.0.
Data Interpretation and Discussion of Findings
This chapter deals with the interpretation of the data gathered for the study using a questionnaire. A total number of fifty-five (55) questionnaires were returned from the seventy questionnaires expected. The data collected were analysed and presented in tables as follows.
Table 1: Descriptive Statistics of Respondents’ Biodata
Frequency | Percentage | ||
Sex | Male | 39 | 70.9% |
Female | 16 | 29.1% | |
Age | 20 – 25 | 8 | 14.5% |
26 – 30 | 10 | 18.2% | |
31 – 35 | 16 | 29.1% | |
36 – 40 | 9 | 16.4% | |
41 – 45 | 4 | 7.3% | |
46 – 50 | 3 | 5.5% | |
51 – 55 | 4 | 7.3% | |
56 – 60 | 1 | 1.8% | |
Educational Level | Higher National Diploma | 6 | 10.9% |
Undergraduate | 1 | 1.8% | |
Postgraduate | 48 | 87.3% | |
Years of Experience | 1 – 5 | 13 | 23.6% |
6 – 10 | 6 | 10.9% | |
11 – 15 | 18 | 32.7% | |
16 – 20 | 16 | 29.1% | |
21 – 25 | 1 | 1.8% | |
26 and above | 1 | 1.8% |
Source: Field Survey, 2023
Table 1 above showed that majority of the respondents – were Male given 71 approximately%; are between the age of 31 – 35 given 29% approximately; possess postgraduate educational level given as 87% approximately; and 11 – 15 years of experience given as 33% approximately.
Mean and Standard Deviation for Study Variables
The tables below show the degree upon which independent indicators (political and cultural interference) affects dependent indicators (solicitation and contract administration) in the selected parastatals. Research participants, which are the employees of these parastatals gave their responses to the statements. The responses were based on a five-point Likert scale coded with numerical values for ease of analysis. The values assigned were 5 for strongly agreed (SA), 4 for agreed (A), 3 for undecided (UN), 2 for disagreed (D), and 1 for strongly disagreed (SD). The width of class interval for the values assigned comprises of 4.50 – 5.00 for strongly agreed, 3.50 – 4.49 for agreed, 2.50 – 3.49 for undecided, 1.50 – 2.49 for disagreed and 0.50 – 1.49 for strongly disagreed. The following displays the averages and standard deviation of the replies:
Table 2: Mean and Standard Deviation for Political Interference
Statement | Min | Max | Mean | Std Dev |
The choice of procurement projects are not influence by political interference | 1 | 4 | 1.75 | .865 |
Recruitment or selection of suppliers and contractors is done fairly without party intrusion or influence. | 1 | 4 | 1.82 | .964 |
Procurement in your organisation is done fairly and satisfactorily without favouring cronies and party affiliates. | 1 | 4 | 1.84 | .898 |
Policies formulation for the procurement process is not affected with political involvement. | 1 | 4 | 2.13 | 1.123 |
Political involvement does not cause delay in procurement process. | 1 | 4 | 1.76 | .769 |
Political parties and individuals have no influence in the decision-making during the solicitation process. | 1 | 4 | 1.69 | .742 |
Political interference does not affect the timing of the implementation of procurement projects. | 1 | 3 | 1.78 | .599 |
Political influence does not affect the procurement methods to be used | 1 | 4 | 1.98 | 1.114 |
Source: Field Survey (2023)
The results show that the mean score was on below average, indicating that respondents disagreed with all statements relating to political interference.
Table 3: Mean and Standard Deviation for Cultural Interference
Statement | Mini | Max | Mean | Std Dev |
Hierarchical structure does not influence decision-making on contracts approval and purchases during the solicitation process. | 1 | 2 | 1.78 | .417 |
Language barrier has no impact in the fairness and transparency of solicitation processes. | 1 | 4 | 2.62 | 1.269 |
Bribery does not affect the adherence to procurement regulations and guidelines. | 1 | 4 | 2.27 | 1.027 |
Cultural interferences interference has no impact in the efficiency and effectiveness of contract administration. | 1 | 4 | 2.53 | 1.168 |
Tribalism has no impact in the overall integrity and credibility of contract administration. | 1 | 4 | 2.09 | 1.059 |
Cultural interference does not affect the type of procurement projects | 1 | 4 | 2.64 | 1.078 |
Award of contracts in not affected by cultural interference | 1 | 4 | 2.31 | 1.016 |
Source: Field Survey (2023)
The results show that majority of the mean score was below average indicating that respondents disagreed with all statements.
Table 4: Mean and Standard Deviation for Solicitation Administration
Statement | Mini | Max | Mean | Std Dev |
There is transparency and fairness of solicitation administration process in your organisation. | 1 | 4 | 2.38 | 1.063 |
Evaluation criteria are clearly communication for solicitation to all contractors/suppliers in your organisation. | 1 | 4 | 2.55 | 1.214 |
Stakeholder engagement and participation is notified during the solicitation process in your organisation. | 1 | 4 | 2.44 | 1.067 |
There is efficiency and effectiveness of solicitation administration process in your organisation. | 1 | 4 | 2.51 | 1.103 |
Solicitations administration process in your organisation involve favourism. | 2 | 5 | 3.75 | 1.058 |
Political influence does not affect methods of solicitation | 1 | 4 | 2.24 | .962 |
Cultural influence has no effects on solicitation method | 1 | 4 | 2.53 | .997 |
Source: Field Survey (2023)
The results show that majority of the mean score was more than average indicating that respondents were indecisive with all statements related to solicitations administration.
Table 5: Mean and Standard Deviation for Contract Administration
Mini | Maxi | Mean | Std. Dev | |
The contracts are not awarded to suppliers based on political parties of the suppliers. | 1 | 4 | 2.53 | 1.034 |
Award of contracts is not based on the relationship with politicians | 1 | 4 | 2.38 | .952 |
Contracts are never awarded based on ambitions of the politicians. | 1 | 4 | 2.64 | 1.078 |
There is political interference in the selection of suppliers/contractors. | 1 | 5 | 2.67 | 1.233 |
Contracts are awarded based on ethnicity. | 1 | 5 | 2.56 | 1.118 |
Cultural interference has no effects on the type of projects to be considered | 1 | 4 | 2.33 | .883 |
Contract types are not affected by politics | 1 | 4 | 2.51 | .998 |
Contracts methods are not affected by politics | 1 | 4 | 2.18 | .748 |
Contracts Value is not affected by political interference | 1 | 4 | 1.93 | .424 |
Political influence does not have effects on procurement laws amendment | 1 | 4 | 2.29 | .916 |
Political influence does not have effects on the development of procurement policy | 1 | 4 | 2.29 | .854 |
Delivery of contracts to the stated terms are not influenced by politics | 1 | 4 | 2.18 | .748 |
Source: Field Survey (2023)
The results show that majority of the mean score was more than average indicating that respondents were indecisive with all statements related to solicitations administration.
Test for Hypotheses
H01: Political interference has no effect on solicitation and contract administration.
Model Summary | |||||||||||||
Model | R | R Square | Adjusted R Square | Std. Error of the Estimate | |||||||||
1 | .710a | .504 | .494 | .40573 | |||||||||
a. Predictors: (Constant), Political Interference | |||||||||||||
ANOVAa | |||||||||||||
Model | Sum of Squares | df | Mean Square | F | Sig. | ||||||||
1 | Regression | 8.855 | 1 | 8.855 | 53.789 | .000b | |||||||
Residual | 8.725 | 53 | .165 | ||||||||||
Total | 17.579 | 54 | |||||||||||
a. Dependent Variable: Solicitation and Contract Administration | |||||||||||||
b. Predictors: (Constant), Political Interference | |||||||||||||
Coefficientsa | |||||||||||||
Model | Unstandardized Coefficients | Standardized Coefficients | T | Sig. | |||||||||
B | Std. Error | Beta | |||||||||||
1 | (Constant) | 1.283 | .171 | 7.522 | .000 | ||||||||
Political Interference | .657 | .090 | .710 | 7.334 | .000 | ||||||||
a. Dependent Variable: Solicitation and Contract Administration |
Source: Researcher’s Computation (2023)
The model summary table above shows that there is a strong positive relationship between political interference and solicitation and contract administration with a Pearson correlation value given as 0.710. The model also shows the extent to which political interference influences solicitation and contract administration with a coefficient of determination (R2 = 0.504) given as 50.4%.
This result is statistically significant because the p-value of the result (0.000) is less than the 0.01 level of significance used for the study. It is also observed from the and contract administration of the selected Ministries and Vendors. Therefore, the proposed coefficient table above that an evaluation of the unstandardized coefficient of political interference and its associated p-value (βPMF = 0.657, p < 0.01) is
statistically significant and can be used in predicting the solicitation research hypothesis is rejected.
SC = 1.283 + 0.657PL
H02: Cultural interference has no significant effect on solicitation and contract administration.
Model Summary | ||||||||||||||||
Model | R | R Square | Adjusted R Square | Std. Error of the Estimate | ||||||||||||
1 | .535a | .286 | .272 | .48669 | ||||||||||||
a. Predictors: (Constant), Cultural Interference | ||||||||||||||||
ANOVAa | ||||||||||||||||
Model | Sum of Squares | df | Mean Square | F | Sig. | |||||||||||
1 | Regression | 5.025 | 1 | 5.025 | 21.216 | .000b | ||||||||||
Residual | 12.554 | 53 | .237 | |||||||||||||
Total | 17.579 | 54 | ||||||||||||||
a. Dependent Variable: Solicitation and Contract Administration | ||||||||||||||||
b. Predictors: (Constant), Cultural Interference | ||||||||||||||||
Coefficientsa | ||||||||||||||||
Model | Unstandardized Coefficients | Standardized Coefficients | t | Sig. | ||||||||||||
B | Std. Error | Beta | ||||||||||||||
1 | (Constant) | 1.594 | .200 | 7.953 | .000 | |||||||||||
Cultural Interference | .376 | .082 | .535 | 4.606 | .000 | |||||||||||
a. Dependent Variable: Solicitation and Contract Administration |
The model summary table above shows that there is a positive moderate relationship between cultural interference and solicitation and contract administration with a Pearson correlation value given as 0.535. Furthermore, the table shows the extent to which cultural interference, the independent indicator, influences solicitation and contract administration with a coefficient of determination (R2 = 0.286) given as 28.6%.
This result is statistically significant because the p-value of the result (0.000) is less than the 0.01 level of significance used for the study. It is also observed from the coefficient table above that an evaluation of the unstandardized coefficient of cultural interference and its associated p-value (βPMF = 0.376, p < 0.01) is statistically significant and can be used in predicting the solicitation and contract administration of the selected Ministries and Vendors. Therefore, the proposed research hypothesis is rejected.
SC = 1.594 + 0.376CL
DISCUSSION OF FINDINGS
The findings from the analysed responses and tested hypotheses had revealed that political and cultural interference significantly influence the solicitation and contract administration of the selected Ministries and Vendors. This finding is in line with several literature on the studied topic.
This finding is convergence with the findings of Manu et al. (2018), stating that political interference, nepotism, and tribalism are major impediments to public procurement effectiveness in Nigeria. Chikwere et al. (2019) corroborate the finding of this study by stating that political interference occurred in the awarding of procurement contracts by instructing the procuring entity on which project to implement and when to implement it. Nuertey et al. (2018) demonstrated the same thing, asserting that political and cultural interference influences procurement through supplier or contractor selection by making sure that their companies or allies are selected and awarded the contracts. This has a significant impact on procurement process and performance, as most of the time, the companies awarded are incapable. As a result, they failed to complete the project on time, with the required quality, and at the agreed price claimed Nuertey et al. (2018).
Boatemaa-Yeboah and Tamakloe (2019) assert that politicians interfered with procurement process. The authors further stated that they preferred contracts to be implemented nearly during the election period to gather additional votes from their voters. Similarly, Swainson and Mahanty (2018) painted that the politicians proposed the project to be implemented in a particular area for the sake of getting political popularity for their voters. Titl and Geys (2019) also argued that politicians interfere with the procurement process through the amending of some sections and clauses for their personal interests. This statement contradicts that of Tsabora (2014), who argued that politicians were involved in the development of the procurement policy. Although, Masoud (2022) came out with the opposite observation that the politicians had no influence on the development of the procurement policy.
CONCLUSION AND RECOMMENDATIONS
The study’s main objective was to determine how political and cultural interference affects the procurement process in public sector in Nigeria, especially in Lagos state. The findings indicate that political and cultural interference in solicitation administration, as well as contract administration, which has a negative impact on procurement performance of the selected government parastatals and vendors. This means that when politicians, tribalism, nepotism etc interfere with supplier selection and contract awarding, then, procurement process suffers.
Based on the conclusion, this study believe public administrators and procurement department of the selected ministries and organization should enforce the policies in The Federal Government of Nigeria public procurement Act 2007 guideline to reduce political interference in solicitation and contract administration. Top management of the procuring entities should ensure that all organs involved in the procurement function operate independently and without interference
Contribution to Knowledge
The study was able to establish that cultural interference can also affects procurement process which is different to what has been reviewed by other past researchers.
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