The Bureau of Public Procurement (BPP) has announced a holistic revision of public procurement thresholds for federal Ministries, Departments and Agencies (MDAs) in furtherance of the government’s moves to frontally tackle bureaucratic delays and improving efficiency in public contract awards.
The Head of Public Relations at the Bureau, Zira Nagga, in a statement on Thursday indicated that the revised guidelines, which had been approved by President Bola Tinubu, reflected Nigeria’s current economic realities, including rising inflation and shifting market dynamics.
He clarified: “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.
According to the Bureau’s spokesperson, under the new framework, contracts valued at N5 billion and above for goods and consultancy services and N10 billion and above for works will require Federal Executive Council approval.
He stated that contracts below these thresholds would be approved by Ministerial Tenders Boards, Parastatal Tenders Boards, or Accounting Officers according to specified monetary bands.
Nagga also confirmed that the detailed that procurement methods had 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 partly reads: “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.”
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”, it added.
The Bureau stated that revised thresholds were applicable to all arms of government as well as Defence and Intelligence communities, covering all funding sources, including internally generated revenues, donations, and gifts.
Similarly, it clarified that 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 Bureau threatened to sanction “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 is even as it indicated its readiness to issue guidelines for community-based and affirmative/preferential procurements to support micro, small and medium enterprises, women, and persons with disabilities in order to ensure compliance with the revised procurement thresholds.
