The Bureau of Public Procurement on Thursday announced a comprehensive revision of public procurement thresholds for federal Ministries, Departments, and Agencies, aimed at reducing bureaucratic delays and improving efficiency in contract awards.
In a press statement by the Head of Public Relations at the BPP, Zira Nagga, the changes, approved by President Bola Tinubu, reflect Nigeria’s current economic realities, including rising inflation and shifting market dynamics.
“The revised thresholds directly respond to rising inflation, shifting market dynamics, and the pressing need to reduce bureaucratic bottlenecks that impede timely contract awards and budget execution.
“With these adjustments, more procurement responsibilities will now be delegated to Ministerial and Parastatal Tenders Boards and Accounting Officers, thus decongesting the Federal Executive Council of routine procurement matters and allowing it to focus on broader national policy issues,” the statement said.
Under the new framework, contracts valued at N5bn and above for goods and consultancy services and N10bn and above for works will require Federal Executive Council approval. Contracts below these thresholds will be approved by Ministerial Tenders Boards, Parastatal Tenders Boards, or Accounting Officers according to specified monetary bands.
The statement detailed that procurement methods have also been adjusted to streamline processes. International or National Competitive Bidding is now mandatory for goods valued at N1bn and above, and works valued at N5bn and above. Smaller procurements may proceed through Requests for Quotations or Shopping (Market Survey).
The statement read, “Under the new structure, only contracts valued at N5bn and above for Goods and Consultancy Services and N10bn and above for Works will require FEC approval. Projects below these thresholds will be processed at the Ministerial Tenders Board, Parastatal Tenders Board, and by the Accounting Officers based on their respective costs.
“These thresholds will, however, be subject to periodic reviews, either upward or downward, depending on prevailing economic realities to ensure the stability of procurement processes.”
It added, “Furthermore, Mr President approved new thresholds for procurement methods aimed at streamlining and enhancing the efficiency of the procurement process. Under the revised guidelines, International or National Competitive Bidding must procure goods valued at N1bn and above and works valued at N5bn and above.
“For smaller procurements, Requests for Quotations are permitted for goods and non-consultant services valued below N30m and works valued below N50m. In addition, the threshold for prequalification has been set at N500m and above for goods and non-consultant services, and N1bn and above for works.”
These revised thresholds apply to all arms of government — Executive, Legislature, and Judiciary — as well as Defence and Intelligence communities, covering all funding sources, including internally generated revenues, donations, and gifts.
Also, MDAs must submit monthly procurement reports, including details of contracts awarded, to their respective websites and the BPP portal. These data will be accessible to the highest approving authorities for oversight.
The statement warned that “those who decide to flout, abuse or frustrate the implementation of these revised thresholds will be recommended to Mr. President for administrative sanctions, as it will no longer be business as usual.”
The BPP also pledged to issue guidelines for community-based and affirmative/preferential procurements to support micro, small and medium enterprises, women, and persons with disabilities.
Training of procurement officers will be strictly regulated, with only BPP-approved individuals and institutions authorised to conduct procurement training.
The Director-General of the BPP, Dr Adebowale Adedokun, was quoted in the statement, saying, “The BPP remains open and accessible to all stakeholders seeking interpretation, clarification, or assistance in implementing these new thresholds. We aim to ensure that all public procurement is carried out per the principles of transparency, accountability, and value for money.”
The statement added that the Bureau will collaborate with sister anti-corruption agencies to enhance monitoring, audit, and enforcement efforts, including debarment of contractors involved in corrupt or fraudulent acts.
The new thresholds take immediate effect and are expected to boost Nigeria’s procurement system, promote local content policies, and strengthen institutional accountability.
