The Federal Government has introduced new procurement thresholds for public contracts in Ministries, Departments, and Agencies (MDAs), aiming to reduce bureaucratic delays and align processes with Nigeria’s current economic realities.
The Bureau of Public Procurement (BPP) announced the revised thresholds in a statement on Thursday, saying the changes—approved by President Bola Ahmed Tinubu—will help fast-track project implementation and ease the burden on the Federal Executive Council (FEC).
According to the BPP’s Head of Public Relations, Zira Nagga, the adjustments reflect the impact of inflation and changing market conditions. He said the reforms are part of ongoing efforts to make Nigeria’s procurement system more responsive, transparent, and efficient.
Under the new policy, only contracts valued at ₦5 billion and above for goods and consultancy services, and ₦10 billion and above for works, will now require FEC approval. Contracts below these thresholds can be approved by Ministerial Tenders Boards, Parastatal Tenders Boards, or the Accounting Officers, depending on the size of the project.
This major change is expected to decongest the FEC, allowing it to concentrate on broader national policy matters, rather than being tied down by routine contract approvals.
Also, the procurement process has been streamlined under the new rules. National or International Competitive Bidding will now be mandatory for goods worth ₦1 billion and above and works worth ₦5 billion and above. Smaller contracts may go through Requests for Quotations or Shopping, depending on their value.
For smaller procurements, goods and non-consultant services below ₦30 million, and works below ₦50 million, may proceed through the simplified Request for Quotations method. The prequalification threshold is now ₦500 million and above for goods and services, and ₦1 billion and above for works.
These thresholds will apply across all arms of government — the Executive, Legislature, and Judiciary — as well as the Defence and Intelligence agencies, and will cover all sources of funding, including internally generated revenue, donations, and grants.
To ensure accountability and transparency, MDAs are now required to publish monthly procurement reports, listing details of all awarded contracts, both on their websites and on the BPP procurement portal. This information will also be accessible to the highest approving authorities.
The BPP warned that failure to comply with these new rules will attract administrative sanctions, as the government aims to move away from business as usual. “Those who decide to flout, abuse or frustrate the implementation of these revised thresholds will be recommended to Mr. President for administrative sanctions,” the statement warned.
Dr Adebowale Adedokun, the Director-General of the BPP, said the Bureau would provide support to all stakeholders needing clarification on the new policy. He assured that the agency remains committed to transparency, accountability, and getting value for money in public procurement.
He added that the BPP will also issue guidelines for community-based and preferential procurements that favour small businesses, women, and persons with disabilities, to promote inclusiveness.
Training of procurement officers will also be tightly regulated. Only individuals and institutions approved by the BPP will be allowed to conduct procurement training going forward.
The Bureau also pledged to work with anti-corruption agencies to improve monitoring and enforcement, and to debar contractors involved in fraud or corrupt practices.
The new thresholds take immediate effect, and are expected to make the procurement process faster, promote local content, and help improve public service delivery across the country.
