President Bola Ahmed Tinubu has approved a new policy that exempts contracts and procurement deals below ₦5 billion from needing the endorsement of the Federal Executive Council (FEC).
Naija News reports that this update was disclosed on Thursday in a statement by spokesperson of the Bureau of Public Procurement (BPP), Zira Nagga.
Under the revised procurement framework, Ministries, Departments, and Agencies (MDAs) are now mandated to handle contracts worth less than ₦5 billion internally, without routing them through the FEC.
The BPP further outlined that any procurement involving goods valued at ₦1 billion and above, or construction works starting from ₦5 billion, must now follow either international or national competitive bidding processes.
Explaining the rationale behind the changes, the BPP noted the federal government introduced the reforms to reduce bureaucratic bottlenecks and promote efficiency across public institutions.
“Under the new structure, only contracts valued at ₦5bn and above for goods and consultancy services and ₦10bn 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,” the statement clarified.
“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 further explained that smaller transactions would be governed by less cumbersome procedures: “For smaller procurements, Requests for Quotations are permitted for goods and non-consultant services valued below ₦30 million and works valued below ₦50 million. In addition, the threshold for prequalification has been set at ₦500 million and above for goods and non-consultant services and ₦1 billion and above for works.”
The Bureau also issued a warning to public officers about non-compliance, stressing that penalties would apply: “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.”
This announcement follows President Tinubu’s endorsement of the Nigerian First Policy, which restricts the importation of foreign goods to promote local content.
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