An Evaluation of the Adoption of Sustainable Procurement Practices in Ministries, Departments, and Agencies (MDAs) in Nigeria
Chapter One
Preamble of the Study
Current research on sustainable procurement in Nigeria reveals several notable gaps. Firstly, there is a significant lack of focused research on public-sector Ministries, Departments, and Agencies (MDAs) within Nigeria. Much of the existing literature emphasizes private-sector procurement or is concentrated in developed countries, leaving a gap in understanding the unique challenges and practices of Nigerian MDAs (Komolafe, 2022). This limited focus undermines efforts to tailor sustainable procurement strategies to the specific needs and conditions of Nigeria’s public sector. Additionally, there is a noticeable scarcity of longitudinal studies that track the long-term impacts of sustainable procurement practices. Most existing research provides a snapshot of current practices without examining how these practices evolve or their sustained effects over time (Alexander et al., 2022). This absence of long-term analysis limits the ability to understand and enhance the enduring effectiveness of sustainable procurement strategies.
Moreover, the field suffers from inadequate risk management models for sustainable procurement. Although many studies identify various risk factors associated with sustainable procurement, there is a notable lack of robust, practical models designed to effectively mitigate these risks (Ogunsanya et al., 2019). This gap highlights a need for comprehensive frameworks that can address and manage the complexities of risk in sustainable procurement initiatives. Furthermore, there is insufficient analysis of stakeholder engagement in the context of Nigeria’s sustainable procurement practices. Few studies delve deeply into the roles of key stakeholders, such as suppliers and policymakers, and their influence on sustainable procurement outcomes (Kolawole & Idris, 2020). This lack of detailed stakeholder analysis impedes efforts to develop inclusive and effective procurement strategies that fully engage all relevant parties and drive successful implementation.
CHAPTER TWO
LITERATURE REVIEW
Conceptual Review
Sustainable Procurement (SP)
Sustainable procurement (SP) refers to the acquisition of goods and services in a manner that ensures environmental, social, and economic sustainability throughout their lifecycle. SP integrates considerations such as resource efficiency, environmental preservation, and social responsibility into procurement processes. It ensures that the needs of the present are met without compromising the ability of future generations to meet theirs, which aligns with the broader definition of sustainability (Elkington, 2020). In this context, procurement goes beyond just purchasing goods and services; it involves a commitment to sustainability at every stage of the supply chain.
The principles of SP revolve around the triple bottom line: environmental, social, and economic sustainability. Environmentally, SP aims to reduce waste, minimize resource consumption, and mitigate pollution, ensuring that the production and delivery of goods have the least environmental impact (Lemprière, 2020). Socially, SP fosters ethical sourcing, prioritizing suppliers that adhere to fair labour practices, human rights, and community development. Economically, SP aims for long-term cost efficiency by promoting investments in sustainable goods and services, which may have higher upfront costs but offer significant savings over time due to durability and reduced environmental impact (Seippel, 2020).
One of the key characteristics of SP is its holistic approach, ensuring that environmental and social considerations are embedded in the entire procurement process. This holistic view emphasizes not just the final product but the sourcing, production, and disposal processes. For example, organizations that adopt SP prioritize suppliers that reduce their carbon footprint, utilize recycled materials, or have energy-efficient production processes (Kannan, 2021). Moreover, SP encourages innovation, as businesses are driven to develop products and services that are both sustainable and meet consumer demands, thus fostering the growth of green technologies and practices.
Another critical aspect of SP is its emphasis on transparency and accountability within the supply chain. SP requires the assessment of suppliers’ sustainability practices, often through certifications, environmental impact assessments, and compliance with international sustainability standards (Alexander, Walker, & Naim, 2022). These measures ensure that suppliers are held accountable for their environmental and social impacts. This transparent relationship builds trust between organizations and their stakeholders, ensuring that sustainability claims are credible and measurable.
The focus on life-cycle thinking is also central to SP. This approach evaluates the environmental and social impacts of a product or service from the extraction of raw materials to its end-of-life disposal. Organizations that practice SP prioritize products that have minimal negative impacts throughout their lifecycle. This approach not only ensures environmental protection but also reduces long-term operational costs (Komolafe, 2022). For instance, procuring energy-efficient machinery or recyclable materials may have a higher initial cost but can significantly reduce operating expenses and waste management costs over time.
Sustainable procurement further promotes stakeholder engagement. It encourages collaboration between public and private sectors, suppliers, and consumers to drive sustainability initiatives. In this regard, SP is not limited to the procurement department but involves the entire organization, ensuring that sustainability is embedded in its core values and operations (McMurray et al., 2020). Moreover, SP engages external stakeholders, such as governments and non-governmental organizations (NGOs), to promote policies and frameworks that support sustainable practices in procurement.
In terms of policy, many countries and international bodies have implemented regulatory frameworks to promote sustainable procurement. For example, in Sweden, green procurement practices are encouraged through legislation that mandates the consideration of environmental impacts in public procurement decisions (Varnäs, Balfors, & Faith-Ell, 2021). Similarly, in other parts of the world, organizations are adopting SP frameworks that align with global sustainability goals, such as the United Nations’ Sustainable Development Goals (SDGs).
One of the challenges of SP is balancing sustainability with cost-effectiveness, especially in industries where immediate financial returns are prioritized. However, with the growing emphasis on corporate social responsibility (CSR), more organizations are recognizing that sustainable procurement is not just a moral obligation but a business strategy that can enhance brand reputation and foster customer loyalty (Gunatilake, 2023). As a result, SP is becoming an essential practice for organizations that want to remain competitive in today’s sustainability-conscious market.
In essence, sustainable procurement is a comprehensive approach that integrates environmental, social, and economic considerations into the purchasing process. By adopting SP, organizations can reduce their environmental impact, promote ethical labour practices, and ensure long-term economic viability. As global awareness of sustainability continues to rise, SP will play a critical role in shaping the future of responsible business practices and environmental stewardship (Omwoha, 2023).
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