By OBSERVERS TIMES
The Bureau of Public Procurement (BPP) has announced a revision of procurement thresholds for ministries, departments, and agencies (MDAs) as part of ongoing reforms aimed at streamlining processes and enhancing budget execution.
In a statement released on Thursday, Zira Nagga, head of public relations at the BPP, noted that the review, which received approval from President Bola Tinubu, addresses rising inflation, changing market dynamics, and the need to minimize bureaucratic delays in project delivery.
Under the new guidelines, only contracts valued at N5 billion and above for goods and consultancy services, and N10 billion and above for construction works, will require approval from the Federal Executive Council (FEC). Contracts below these thresholds will be managed at the ministerial or parastatal level.
“With these adjustments, more procurement responsibilities will now be delegated to ministerial and parastatal tender boards and accounting officers, thereby relieving the FEC of routine procurement matters and allowing it to concentrate on broader national policy issues,” the statement read.
The BPP further outlined new thresholds for procurement methods. International or national competitive bidding will now be mandated for goods valued at N1 billion and above, and for works worth N5 billion and above. For smaller procurements, requests for quotations will be permitted for goods and non-consultant services below N30 million, and for works below N50 million. Additionally, the threshold for prequalification has been set at N500 million for goods and services, and N1 billion for works.
“Reforms Will Support Economic Growth”
Commenting on the development, Adebowale Adedokun, BPP Director-General, stated that these reforms are designed to enhance efficiency, stimulate economic growth, and facilitate a better business environment.
“These reforms demonstrate the President’s commitment to strengthening institutions, reducing waste, and ensuring value for money in public expenditure,” Adedokun said.
He emphasized that the new thresholds will apply across the executive, legislative, and judicial branches, as well as within the defense and intelligence communities, in accordance with the Finance Act of 2020. The rules will also encompass projects funded through internally generated revenue (IGR), donations, and grants.
Adedokun indicated that the BPP plans to issue guidelines for community-based and preferential procurements, aimed at supporting small businesses, women, and persons with disabilities, while prioritizing local content and Nigerian-made goods in government purchases.
He noted that the revised thresholds take immediate effect and will be periodically reviewed based on economic conditions.
“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 the professionalization of the procurement cadre,” the Director-General added.
He also mentioned that the BPP will collaborate with anti-corruption agencies nationwide to enhance procurement oversight.
