Experts Warn Nigerian Firms to Automate Procurement Quickly
Procurement leaders at the Digital Procurement Africa Summit warn that Nigerian companies relying on paperwork face severe risks within 24 months.
Digital Procurement Experts Warn Nigerian Firms of High Risks from Manual Systems
Running a business efficiently requires keeping a close eye on spending. Yet, many companies in Nigeria still rely heavily on physical paperwork to manage their purchases and supplier contracts. At the Digital Procurement Africa Summit, top industry experts warned that businesses sticking to these manual habits face severe risks within the next 12 to 24 months.
Procurement is the process of finding, buying, and managing goods or services for a company. When done on paper, it creates massive bottlenecks. Leaders from prominent organisations, including Flour Mills of Nigeria and Berger Paints, explained that outdated methods expose companies to hidden financial leaks, high error rates, and a loss of competitive advantage.
The volume of paperwork in large operations is simply too massive to manage by hand. For example, Flour Mills of Nigeria processes over 6,400 purchase transactions and 2,900 bills in a single month. Without software to automate these workflows, tracking expenses accurately becomes nearly impossible.
One major issue highlighted at the summit is how manual systems trap senior managers. Executives often spend hours reviewing piles of repetitive approval documents. This paperwork takes away precious time that leaders should spend on growing the business and making strategic decisions.
Moving to digital systems also exposes hidden costs, particularly in indirect spending. Digital tools bring transparency to transactions, making it much harder for fraud or waste to go unnoticed.
However, switching to digital tools is not always easy. Experts noted that some corporate leaders resist the change because they do not see the immediate financial return, or they feel uncomfortable with the strict transparency that software brings. To fix this, tech and supply chain teams must work together from the start, showing executives exactly how much money the business loses through old methods.
The experts also mentioned that while artificial intelligence can help speed up purchasing decisions, humans must still stay involved to review the data and check for accuracy.
Ultimately, updating how a business buys its goods is no longer just about saving time. In a fast-moving market, it is necessary for survival. Companies that switch to automated platforms gain the speed and clarity needed to stay competitive, while those relying on old paperwork risk falling behind for good.
