Tinubu approves new procurement threshold for FEC, MDAs

President Bola Tinubu has approved a review of public procurement thresholds for Ministries, Departments, and Agencies (MDAs) of the Nigerian government as part of efforts to streamline processes and improve budget execution.

In a statement on Thursday, the BPP spokesperson, Zira Nagga, said the reviewed process also aims to enhance public service delivery efficiency in Nigeria’s evolving economic landscape.

Under the new thresholds, only contracts valued at N5 billion and above for goods and consultancy services, and N10 billion and above for works, will require Federal Executive Council (FEC) approval. The BPP said projects below the said values will be handled at the ministerial or parastatal level.

“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,” the statement said.

“With these adjustments, more procurement responsibilities will now be delegated to Ministerial and Parastatal Tenders Boards and Accounting Officers, thus decongesting the FEC of routine procurement matters and allowing it to focus on broader national policy issues,” the statement said.

The bureau said the president also approved new thresholds for procurement methods. This, BPP said, will help streamline and enhance the procurement process’s efficiency.

“For smaller procurements, requests for quotations are allowed for goods and non-consultant services below N30 million, and works below N50 million,” the BPP said. “In addition, the threshold for prequalification has been pegged at N500 million for goods and services, and N1 billion for works.”

“Reform will promote economic growth”

Speaking on the reviewed guidelines, the BPP Director-General (DG), Adebowale Adedokun, said the reforms aim to improve efficiency, promote economic growth, and facilitate the ease of doing business.

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“These reforms reflect Mr President’s commitment to strengthening institutions, reducing wastage, and ensuring value for money in public expenditure,” Mr Adedokun said.

The BPP DG said the new thresholds apply across the executive, legislature, judiciary, and defence and intelligence communities, in line with the Finance Act of 2020.

“In line with the objective of the Bureau to harmonise existing government policies and practices on public procurement, these new revised thresholds shall supersede any other subsisting threshold issued by the federal government.

“The rules will also cover projects funded through internally generated revenue (IGR), donations, and gifts,” he added.

In the coming weeks, the BPP said it will issue guidelines for community-based and preferential procurements to support small businesses, women, and persons with disabilities, as well as measures to prioritise local content and Nigerian-made goods in all government purchases.

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Mr Adedokun noted that the thresholds take immediate effect and will be subject to periodic review depending on economic realities.

“With the approval of these revised thresholds, the bureau is now positioned to focus on other critical regulatory functions such as procurement audits, surveillance, and professionalisation of the procurement cadre,” he said.

“Also, MDAs are now under obligation to submit monthly reports of their procurement activities, including contracts awarded during the month, on their website and the BPP’s website. These data will be made available to the highest approving authorities in the Executive, Legislative and Judiciary Arms for their consideration. The Bureau shall be working very closely with the Special Adviser to the President on Policy and Coordination and Head of the Central Results Delivery Coordination Unit (CRDCU) to drive this policy.”