The Bureau of Public Procurement has announced a major revision of procurement thresholds for federal Ministries, Departments, and Agencies, aimed at streamlining contract award processes and reducing bureaucratic bottlenecks.
In a statement issued by the Head of Public Relations at the BPP, Zira Nagga, the adjustments were approved by President Bola Tinubu and are intended to reflect prevailing economic conditions, including rising inflation and evolving market trends.
“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 revised procurement framework, all contracts for goods and consultancy services valued at ₦5 billion or more, and works contracts worth ₦10 billion or more, must receive approval from the Federal Executive Council.
Contracts below these thresholds will be approved based on designated financial limits by the appropriate authorities, including Ministerial Tenders Boards, Parastatal Tenders Boards, or Accounting Officers.
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.
“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.”
The revised procurement thresholds apply to all branches of government — Executive, Legislature, Judiciary — including the Defence and Intelligence sectors. This covers all funding sources such as internally generated revenue, donations, and gifts.
MDAs are mandated to submit monthly procurement reports detailing awarded contracts. These reports must be published on their websites and uploaded to the BPP portal, ensuring access for the highest approving authorities to enable effective 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 committed to issuing guidelines for community-based and affirmative or preferential procurements aimed at supporting micro, small, and medium enterprises, women, and persons with disabilities.
