AI in Procurement: How to Adapt, Adopt and Stay Accountable
In 2021, American superstore Walmart called in Pactum AI to solve a contracting problem that costs companies up to 17% - 40% of value due to inefficient negotiations, according to research by KPMG.Walmart has over 100,000 suppliers to manage, and 20% of them had agreements with standard terms that weren’t negotiated. So Pactum AI implemented a chatbot to interface with human suppliers on the company’s behalf and achieved a 3% average gain across negotiations, illustrating that ‘AI-driven negotiations maintained positive supplier relationships while delivering cost improvements’.Fast forward to today and it’s clear that when it comes to AI solutions in procurement, the train has already left the station.For businesses and professionals, the imperative is clear: adapt, adopt and stay accountable; which was my message to the Chartered Institute of Procurement & Supply (CIPS) Nigeria South-South/South-East Branch during my ‘AI in Procurement’ webinar held on the 29th of August 2026.AI fluency is becoming part and parcel of commercial competence. Delays in adoption risk turning a capability gap into a competitive disadvantage. The opportunities span strategy, planning, execution, compliance and assurance. AI can support spend analysis, supplier research, tender preparation, bid comparisons and contract review. In materials management, it can help forecast demand, identify duplicate records and flag stock risks. Connecting these capabilities to sound workflows can improve security of supply, cost competitiveness and the time available for commercial judgement.Walmart’s use of Pactum AI's automated supplier negotiations illustrates that AI can extend commercial attention to repetitive work that busy teams struggle to cover consistently. A major takeaway is that the business problem should determine where adoption begins.The level of autonomy must also reflect both value and consequence. AI can highlight a risky clause, compare offers or propose a sourcing option. Still, accountable professionals must then verify the evidence and retain authority over consequential decisions, especially for high-value or high-consequence goods, works and services. Even an inexpensive spare can be operationally critical. Purchase price alone is an inadequate guide to risk.Likewise poor data, biased prompts and unsupported conclusions can undermine convincing AI recommendations. Organisations should define approved data sources, protect commercially sensitive information, apply consistent evaluation criteria and preserve an audit trail. Every material outcome needs a named human owner who can challenge the recommendation and explain the decision.Adoption also calls for an investment in people. As routine processing reduces, commercial numeracy, negotiation, supplier relationships and critical thinking become more valuable. Teams need practical skills in using AI, checking sources and recognising uncertainty. This investment must also include persons with disabilities through accessible tools, training and support, to ensure the benefits reach the whole workforce.A practical first step is a focused 90-day pilot where organizations can choose one recurring problem, such as extracting contract obligation, and then work with AI to establish the baseline, agree on the data boundaries, human checks and escalation routes, measure time saved, output quality, adoption and exceptions, and finally expand its use only when the evidence demonstrates value and effective control.Multus Competentia Limited is available and ready to empower businesses and organisations to adopt AI solutions in contracting, procurement, and materials management. We can help assess readiness, prioritise valuable use cases, strengthen data and governance, equip teams, guide solution selection and support pilots through to wider adoption. Our focus is practical business value: stronger supply assurance, greater efficiency and better commercial outcomes.Reach out to begin a focused AI readiness discussion.
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China Withdraws Export Subsidies for Solar Energy Components: What are the Implications for Nigeria?
For years, the global renewable energy market ran on a simple, almost predictable logic: China was the go-to source for affordable components. So, if you needed solar panels, inverters, or lithium batteries, you looked to China, and you expected to get them at prices that were hard to beat.That advantage didn’t happen by accident. Behind the scenes, Chinese manufacturers benefited from export incentives that quietly reduced their costs. When they shipped products abroad, they received tax rebates that effectively made their exports cheaper in international markets. This allowed China to scale rapidly, dominate global supply, and make renewable energy far more affordable worldwide. In countries such as Nigeria, this enabled viable solar projects, expanded electrification, and improved access to clean energy.But success created its own pressure.Over time, the industry became crowded. Too many manufacturers were producing too much capacity. Prices kept falling, margins shrank, and competition turned into a race to the bottom. At the same time, trade tensions began to rise, with other major economies accusing China of flooding global markets with subsidized products. What had once been a growth strategy started to look like a long-term risk—both for the global market and for China’s own industrial base.So, China made a deliberate shift.Beginning in 2026, the government started withdrawing those export incentives. For solar products, including panels, inverters, and related components, the export tax rebates were eliminated. For lithium batteries, the support is being phased out, with a reduction in 2026 (from ~9% to 6%) and full removal by 2027. In practical terms, manufacturers exporting from China will no longer receive the tax refunds that once helped keep their prices low. That cost is now being absorbed into the final price of the product.This is not a sudden disruption. It is a quiet reset.Prices are not expected to spike overnight, but the direction is clear: the era of ultra-cheap, subsidy-supported exports is giving way to more realistic pricing. The market is moving from volume-driven competition to a more disciplined environment where efficiency, technology, and long-term value matter more than simply being the cheapest.For Nigeria, this shift has real implications.The country relies heavily on imported renewable energy equipment, much of it from China. As costs gradually rise, solar projects may become more expensive to deliver. Business cases that once looked straightforward will require more careful structuring. At the same time, the narrowing cost gap may create new opportunities for local assembly, regional partnerships, and more resilient supply strategies.But the most important impact is not on the market; it is on how procurement decisions must be made.The old assumption that “China will always be the cheapest option” is no longer reliable. Procurement professionals will need to move beyond price and focus on total value—looking at lifecycle cost, performance, reliability, and long-term risk. Stronger contract management will also become critical, as rising costs tend to drive more claims, variations, and pressure from suppliers.This is a moment that rewards discipline and foresight.Organizations that act early by strengthening their commercial thinking, diversifying their supply approach, and negotiating from an informed position will protect value. Those who continue to rely on outdated assumptions will find themselves paying more, often without realizing why.Renewable energy fundamentals remain solid, and China will stay central to global supply. What has shifted is the pricing dynamic, and with it, the pressure on procurement decision-makers.The game is still the same. But the rules have shifted.
What the U.S., Israel, and Iran Conflict Means for Global and African Supply Chains
The escalating confrontation involving the United States, Israel, and Iran represents one of the most significant geopolitical risks to global supply chains since the COVID-19 pandemic and the Russia- Ukraine war. Unlike many regional conflicts, this crisis directly threatens the physical corridors through which a substantial share of the world’s energy, shipping, and trade flows move.Three of the world’s most critical logistics chokepoints—the Strait of Hormuz, the Bab el-Mandeb Strait, and the Suez Canal corridor—sit within the potential theatre of escalation. These corridors collectively carry:nearly 20% of the global oil supplyabout 20% of the global LNG tradeapproximately 12–15% of global merchandise tradeDisruptions to these arteries are transmitting shocks across global energy markets, maritime shipping networks, aviation corridors, fertilizer supply chains, and industrial production systems.Early manifestations of disruption already include suspension or rerouting of major shipping routes, increased war-risk insurance premiums for vessels, restricted airspace across parts of the Middle East, and volatility in global energy markets.If the conflict escalates or persists, the consequences could include oil prices exceeding $120–$150 per barrel, significant increases in LNG prices, major increases in freight costs, fertilizer supply disruptions affecting global agriculture, and renewed inflationary pressure across many economies.For African economies, including Nigeria, the implications extend beyond energy markets. Rising shipping costs, fertilizer shortages, and supply delays could affect food security, industrial production, and macroeconomic stability.At the same time, the crisis highlights an important structural shift in the global economy: supply chain resilience is now a strategic capability rather than simply an operational concern.Business leaders and policymakers should therefore view the present disruption not only as a short- term shock but also as a signal that global supply chains are entering an era of persistent geopolitical volatility.Three strategic responses are essential:First, organizations must develop visibility into supply chain vulnerabilities, particularly those linked to critical logistics corridors and energy inputs.Second, firms should diversify logistics routes and supplier networks to reduce dependence on a small number of geopolitical hotspots.Third, governments and industry leaders must accelerate investments in regional supply chains, energy infrastructure, and logistics resilience.For Nigeria and Africa more broadly, the crisis also underscores the strategic importance of expanding domestic refining capacity, strengthening regional trade under AfCFTA, investing in fertilizer production and food systems, and building resilient logistics infrastructure. Organizations that proactively redesign supply chains for resilience will not only manage current disruptions more effectively but also be better positioned to compete in a world where geopolitical shocks are increasingly common.Read our full white paper on this topic here
When Governance Fails
‘Across industries, directors face tensions between short-term returns and long-term sustainability, between financial performance and safety, ethics, and compliance.’In this article for the Director Magazine, principal consultant Arinze Oduah highlights why boards must move beyond a short-term financial focus to embed safety, ethics, and sustainability into their governance practices.Read the full article here
Lagos Business School Partners with Multus Competentia to Deliver Strategic Procurement Excellence
Our Managing Consultant, Mr. Arinze Oduah FCIPS, was recently invited as an external resource to Lagos Business School (LBS) to deliver the Strategic Procurement Module of the Developing Analytical Competences for Managers (DACMO) course.Participants unanimously commended his deep expertise, engaging delivery style, and ability to translate complex procurement strategies into practical, real-world applications.What Participants Said:“Mr. Arinze is absolutely fantastic. Extremely knowledgeable, brilliant, and competent in the transfer of knowledge. Excellent.”“He used practical real-life experience to illustrate and explain procurement strategy… very engaging and caught my focus throughout the day.”“The facilitator knows his onions. Very vast in knowledge and understands the subject matter very well. Great class it was!”“In short, we were caught up in a spell being under his tutelage!”“Mr. Arinze did absolute justice to this subject… calm and engaging delivery style, vast knowledge of world history and current affairs, practical and professional.”
Highlights from the CIPS Nigeria Monthly Education Seminar
Earlier this month, our Managing Consultant, Arinze Oduah, shared a presentation on the ‘Strategic Geographic Positioning of Lagos as Trade Hub’ at the CIPS - The Chartered Institute of Procurement & Supply Nigeria Monthly Education Seminar.Senior officials of the Lagos State Government at cabinet level were present, as well as the Director General of the Lagos State Bureau of Public Procurement. The CIPS UK CEO, Ben Farrell MBE, and the CIPS Director for the Middle East, Asia, and Africa, Sam Achampong, were also in attendance.Lagos has the potential to become an important global trade hub, but this requires a significant investment in strengthening the supply chain and trade enablement infrastructure.
Energy Institute’s Energy Sustainability Conference: Balancing Energy Security and Sustainability in Africa
Post-Conference Reflections on Strengthening Africa’s Energy Supply ChainsThe 14–15 November 2024 Energy Institute conference in Lagos Nigeria, themed "Balancing Energy Security and Sustainability in Africa", was a call to action for sustainably addressing Africa's energy challenges and unlocking its immense potential. I was privileged to contribute to these critical conversations through my session, "Strengthening Africa’s Energy Supply Chain: Advancing Local Manufacturing and Infrastructure Development."The Case for Strengthened Supply ChainsAfrica’s energy future—both in fossil fuels and renewables—depends on robust, integrated supply chains. On one hand, there’s an urgent need to pivot towards natural gas as a transitional fuel, given its lower emissions and availability across the continent. On the other, Africa’s renewable energy potential in solar, hydropower, and geothermal remains underutilized. This dichotomy underscores the need for a comprehensive, end-to-end approach to developing Africa’s vast energy potential.Accelerating the Shift to GasNatural gas offers a bridge to cleaner energy systems while addressing Africa's growing energy demand. Yet, supply chain inefficiencies—from limited refining capacity to inadequate distribution networks—delay this transition. Domesticating the manufacture of critical equipment and materials for the natural gas value chain, upgrading existing infrastructure, investing in modern gas processing facilities, and creating regional pipeline networks are critical steps forward.Unlocking Renewable Energy PotentialAfrica’s renewable resources are vast, especially:Solar: Untapped solar energy could meet the continent's energy needs many times over.Hydropower: The Congo River alone could provide up to 100 GW of 350 GW power potential.Geothermal: East Africa’s Rift Valley holds up to 15 GW of geothermal potential.However, over 70% of the technology used to harness these resources is imported. By developing local manufacturing capabilities, Africa can reduce costs, create jobs, and increase energy access.A Vision for Local ManufacturingFor Africa to fully benefit from its energy resources, it must control key parts of the value chain. Take solar energy as an example: Africa possesses the critical minerals needed for solar panels, batteries, and installation kits. Policies that prioritize maximum in-country value added in mineral extraction, manufacturing, and installation at micro, mini, and utility scales can help transform these resources into self-reliant energy systems.Such an ecosystem demands:Investment: Long-term financial commitments to build manufacturing hubs.Policies: Tax incentives, streamlined regulations, and trade facilitation through initiatives like AfCFTA.Capacity Building: Training a skilled workforce in energy technologies.Strategies for Infrastructure DevelopmentAccessing energy resources means overcoming infrastructure bottlenecks. Pipelines, storage facilities, and decentralized mini-grids can connect rural areas to the energy grid while enabling manufacturing clusters. Public-private partnerships (PPPs) have proven effective in financing and executing such projects globally, and similar models can thrive in Africa.Policy, Innovation, and Long-term CommitmentAchieving energy independence requires an alignment of policy, strategy, and innovation:Green Finance: Mobilizing funds through green bonds and impact investments can accelerate the transition to renewable energy.Technology Transfer: Collaborations with global firms can enhance Africa’s technical capabilities.Integrated Supply Chains: Leveraging AfCFTA to build cross-border networks for raw materials and finished goods.Concluding ReflectionsThe Energy Institute conference emphasized that Africa’s energy story is at a pivotal moment. Strengthening energy supply chains isn’t just about meeting immediate demands—it’s about securing a sustainable and prosperous future. With an integrated approach, Africa can harness its resources to power industries, drive development, and assert itself as a leader in the global energy landscape.The path forward requires political will, transnational collaboration, bold strategies, and unwavering commitment over the long term. Together, we can transform challenges into opportunities and deliver energy solutions that resonate across generations.