Procurement, long treated as a routine back-office function in many Nigerian organisations, is emerging as a critical control point in efforts to curb corporate fraud, as companies deploy digital systems to tighten oversight, improve transparency, and enforce compliance across supply chains.
Insights from Dr Olumide Olusanya, Founder of Gloopro, indicate that the growing adoption of digital procurement platforms is helping businesses address structural inefficiencies and governance gaps that have historically enabled fraud in procurement processes.
Speaking in an exclusive interview with Technology Times TV on Thursday in Lagos, Olusanya links the persistence of procurement fraud in Nigeria to a deeper systemic issue: the disconnect between formal enterprise systems and the largely informal supplier ecosystems that underpin business operations across the country and much of sub-Saharan Africa.
“There is a significant difference between what you have in the Nigerian or sub-Saharan business context compared to Western developed markets,” he says.
This divergence, the Gloopro founder explains, has created a structural mismatch between globally standardised enterprise resource planning (ERP) systems and the realities of local supply chains, where many vendors operate outside formal digital frameworks.
“There is no meeting point between that informality compared to the standard platforms that most of our customers use,” Olusanya adds.
Speaking in an exclusive interview with Technology Times TV on Thursday in Lagos, Olusanya links the persistence of procurement fraud in Nigeria to a deeper systemic issue: the disconnect between formal enterprise systems and the largely informal supplier ecosystems that underpin business operations across the country and much of sub-Saharan Africa.
This lack of alignment has historically forced organisations to rely heavily on manual workarounds to bridge the gap, a condition that has introduced inefficiencies and created fertile ground for fraud.
Gloopro: Fragmentation, manual processes widen fraud exposure
The absence of seamless integration between enterprise systems and supplier networks has left procurement workflows fragmented, with multiple touchpoints requiring human intervention.
In practice, this means procurement officers often manage supplier onboarding, purchase approvals, invoice processing, and fulfilment tracking across disconnected systems or, in some cases, entirely offline processes.
According to Olusanya, this fragmentation is a primary driver of fraud risk.
“There’s a lot of inefficiency there’s opportunity for errors across the value chain,” he says. “What that does therefore is that it exposes the system to the risk of bad actors.”
In such environments, he notes that fraudulent practices can emerge at multiple stages of the procurement lifecycle. These include manipulation of invoices, unauthorised purchases outside approved vendor lists, and the splitting of purchase orders to bypass approval thresholds.
The fallouts result in “invoice manipulation, off-contract purchasing, PO splitting, and so many varying fraud-related shenanigans,” Olusanya says.
For industry analysts, these practices often go undetected in manual or semi-digitised systems, where audit trails are incomplete, approvals are not consistently documented, and data visibility is limited.
The implications extend beyond financial loss. Procurement fraud can distort financial reporting, weaken supplier trust, and expose organisations to regulatory and reputational risks.
Digital procurement embeds control into workflows
To address these vulnerabilities, Nigerian businesses are increasingly turning to digital procurement platforms like Gloopro that embed governance mechanisms directly into procurement workflows.
Rather than relying on after-the-fact audits or manual oversight, these systems enforce compliance at every stage of the procurement process, from requisition to payment.
Olusanya explains that Gloopro’s approach integrates supplier management, workflow automation, and logistics coordination into a unified system designed to reflect local operating conditions while maintaining enterprise-grade controls.
He describes the platform as “a neatly coupled engine” that connects informal supply chains with structured enterprise processes.
This integration allows organisations to digitise procurement end-to-end, creating a continuous and auditable data trail that reduces opportunities for manipulation.
Under such systems, Olusanya says, procurement requests can be standardised through predefined templates, approvals can be automated based on set thresholds, and supplier interactions can be logged in real time.
By reducing reliance on manual processes, organisations can significantly limit the points at which fraud can occur.
Digital systems also enable real-time monitoring of transactions, allowing anomalies to be flagged and addressed before they escalate into systemic issues.
For example, he says, duplicate invoices, unusual pricing patterns, or repeated purchases from non-approved vendors can be automatically detected through rule-based or data-driven controls.
Governance shifts from policy to system enforcement
A defining feature of digital procurement platforms is the transition from policy-based governance to system-enforced compliance.
In traditional procurement environments, organisations often rely on written policies and manual checks to regulate purchasing behaviour. However, enforcement depends heavily on human discipline and oversight, which can be inconsistent.
Digital systems change this dynamic by embedding governance rules directly into procurement workflows.
Organisations can define parameters for vendor selection, approval hierarchies, spending limits, and contract compliance within the system, ensuring that transactions cannot proceed unless they meet predefined criteria.
This approach is particularly effective in managing “tail spend,” which refers to low-value, high-frequency transactions that collectively account for a significant portion of procurement expenditure but often receive limited oversight.
Olusanya notes that traditional procurement systems treat both high-value and low-value transactions with similar administrative effort, leading to inefficiencies and oversight gaps.
“What therefore it does is that it saves the executive time consumed by this to go and do more things that are strategic,” he says.
By automating routine procurement activities, organisations can focus their resources on strategic sourcing, supplier development, and cost optimisation, while maintaining tighter control over everyday spending.
Olusanya cautions that many global procurement systems fail to deliver expected outcomes in African markets because they do not account for the complexities of informal supplier networks. In Nigeria, a significant portion of suppliers operate outside formal digital systems, relying on manual processes and informal business practices.
Real-time visibility strengthens accountability
One of the most significant advantages of digital procurement is the visibility it provides across the procurement lifecycle.
In manual systems, procurement data is often siloed across departments, making it difficult for organisations to obtain a comprehensive view of spending patterns, supplier performance, and compliance levels.
Digital platforms consolidate this data into centralised dashboards, enabling decision-makers to track procurement activities in real time.
This visibility enhances accountability by making it easier to identify irregularities, monitor compliance, and evaluate supplier relationships.
For instance, procurement leaders can analyse spending trends to detect unusual patterns, such as repeated purchases just below approval thresholds or sudden increases in supplier pricing.
They can also assess supplier performance based on delivery timelines, pricing consistency, and contract adherence.
Such insights not only help in detecting fraud but also support broader business objectives, including cost reduction and operational efficiency.
Procurement’s role expands in corporate governance
The increasing adoption of digital procurement is also reshaping the role of procurement within Nigerian organisations.
Traditionally viewed as a support function, procurement is gaining recognition as a strategic lever for risk management and value creation.
“The general trend is that procurement is no longer something that is done in the back office,” Olusanya says.
Globally, procurement is evolving into a core component of corporate governance frameworks, with organisations recognising its impact on financial integrity, operational efficiency, and regulatory compliance.
Nigerian businesses are beginning to align with this trend, particularly as economic pressures heighten the need for cost discipline and accountability.
Digital procurement systems play a central role in this shift by providing the tools needed to enforce governance, manage risk, and optimise spending.
As organisations digitise their operations, procurement is increasingly integrated into broader enterprise systems, including finance, logistics, and supply chain management.
This integration further enhances transparency and reduces the likelihood of fraud by ensuring that procurement activities are aligned with overall business processes.
Localisation remains critical to success
Despite the benefits of digital procurement, its effectiveness in Nigeria depends on how well solutions are adapted to local realities.
Olusanya cautions that many global procurement systems fail to deliver expected outcomes in African markets because they do not account for the complexities of informal supplier networks.
In Nigeria, a significant portion of suppliers operate outside formal digital systems, relying on manual processes and informal business practices.
This creates challenges for organisations attempting to implement standardised procurement solutions that assume a fully digitised supplier base.
To address this, digital procurement platforms must bridge the gap between formal enterprise systems and informal supply chains.
This involves designing systems that can accommodate varying levels of digital maturity among suppliers while maintaining governance standards.
For example, platforms may need to support multiple modes of supplier interaction, including mobile-based interfaces or simplified onboarding processes, to ensure broad participation.
At the same time, they must enforce compliance requirements, such as documentation, pricing transparency, and contract adherence.
This balance between flexibility and control is essential to ensuring that digital procurement systems are both practical and effective in the Nigerian context.
Data-driven procurement reduces fraud risk
Another key advantage of digital procurement is the ability to leverage data analytics to detect and prevent fraud.
By capturing detailed data on procurement activities, organisations can apply analytical tools to identify patterns and anomalies that may indicate fraudulent behaviour.
For example, data analytics can reveal inconsistencies in supplier pricing, unusual transaction volumes, or deviations from established procurement patterns.
These insights enable organisations to take proactive measures to address potential risks before they result in financial loss.
In addition, digital systems create comprehensive audit trails that support internal and external audits, making it easier to investigate suspected fraud cases.
The availability of accurate and timely data also enhances decision-making, enabling organisations to optimise procurement strategies and improve overall performance.
Building resilient and transparent supply chains
As Nigerian businesses navigate an increasingly complex and risk-prone operating environment, the role of procurement in ensuring resilience and transparency is becoming more pronounced.
Digital procurement platforms are enabling organisations to build more structured and accountable supply chains, reducing reliance on informal processes and strengthening governance frameworks.
By closing gaps between systems, minimising human intervention, and embedding controls into workflows, these platforms are helping to mitigate fraud risks and improve operational efficiency.
For organisations, the shift to digital procurement represents more than a technological upgrade. It reflects a broader transformation in how procurement is perceived and managed within the enterprise.
Olusanya indicates that organisations that adopt digital procurement early are better positioned to manage risks, optimise costs, and enhance competitiveness.
In an environment where fraud risks remain a persistent concern, the ability to enforce transparency and accountability through technology is emerging as a critical differentiator.
The evolution of procurement from a back-office function to a strategic control point underscores its growing importance in Nigeria’s corporate landscape, as businesses seek to strengthen governance and drive sustainable growth, according to the Gloopro founder.
Home
