FG Raises Procurement Thresholds To Speed Contract Awards And Boost Transparency

• As inflation continues to shrink the purchasing power of the naira, the federal government has reviewed the procurement thresholds
• This effectively increases the limit of contracts that will be brought before members of the Federal Executive Council
• The government has also changed some of the requirements on the national and international bidding process in government contracts

Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.

The Bureau of Public Procurement (BPP), with approval from the federal government, has revised the procurement thresholds for all federal Ministries, Departments, and Agencies (MDAs).

This increase responds to rising inflation and changing market conditions, and aims to reduce bureaucratic delays while speeding up contract awards.

A press statement by the Head of Public Relations at the BPP, Zira Nagga, explained that the review delegates more procurement responsibilities to internal structures within the MDAs, such as the Ministerial and Parastatal Tenders Boards and Accounting Officers.

Recall that the Nigerian Senate President, Godswill Akpabio, had urged the President to review the procurement act to reduce the number of abandoned projects.

FG approves new procurement thresholds, framework

Under the new framework, the Federal Executive Council (FEC) will now only consider contracts valued at N5 billion or more for goods and consultancy services, and contracts worth N10 billion or more for works projects.

Contracts below these thresholds will be approved internally by Ministerial Tenders Boards, Parastatal Tenders Boards, or designated Accounting Officers.

The Director-General of the BPP, Dr. Adebowale Adedokun, emphasised the commission’s commitment to transparency and accountability, stating:

“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.”

FG updates procurement methods for MDAs

According to the PUNCH, the new regulations mandate that procurements for goods and consultancy services valued at N1 billion and above, or works contracts worth N5 billion and above, must be conducted through International or National Competitive Bidding processes.

• Contracts below these thresholds will be managed via Requests for Quotations or Shopping (market surveys).
• Requests for Quotations are allowed for goods and non-consultant services below N30 million and for works below N50 million.
• Prequalification thresholds have been set at N500 million and above for goods and non-consultant services, and N1 billion and above for works.

The revised procurement thresholds apply uniformly across all government arms, including Defence and Intelligence sectors, and cover all funding sources—Internally Generated Revenues, donations, and gifts alike.

BPP to drive transparency with reviewed thresholds

To promote compliance, ministries and agencies must submit monthly procurement reports to the BPP portal, detailing awarded contracts and relevant data.

The BPP will collaborate with anti-corruption agencies to monitor procurement activities, audit contracts, and enforce transparency, and will have the authority to debar contractors found guilty of fraudulent practices.

Ministries that fail to comply will be recommended to the President for administrative sanctions.

Recall that the Nigerian Ports Authority (NPA) is currently embroiled in reports of large-scale corruption and procurement irregularities.

BPP to expose over-bloated contracts

In related news, the Bureau for Public Procurements issued a warning to procurement officials over irregularities in project execution.

Speaking at a sensitisation workshop for directorate-level procurement officers in Abuja, the Director-General of the Bureau, Dr. Adebowale Adedokun, warned the officers that behaving like politicians or colluding with contractors to circumvent the system will no longer be tolerated.

Legit.ng reported that the directive was sent to all Ministries, Directorates, and Agencies.

Proofreading by James Ojo, copy editor at Legit.ng.

Source: Legit.ng