● Directs BPP to enforce use of Open Competitive Bidding as the default method of procurement…
The federal government has approved the revision of the subsisting Prior Review and Monetary Thresholds for service-wide application for procurement of goods, works and services.
The approval is a sequel to government’s deliberate bid to ensure sustained and realistic procurement outcomes in the face of current economic realities and to enhance budget implementation and ease of doing business.
The approval was contained in a circular directed to relevant officials and offices, dated May 27, 2025 and signed by the Secretary to the Government of the Federation [SGF], Senator George Akume.
The current approved procurement thresholds, as contained in the seven-page circular, are N1 billion and above, N5 billion and above and N1 billion and above for goods, works and non consultant services respectively for international/ national competitive bidding; and N30 million and above but less than N1 billion, N50 million and above but less than N5 billion and N30 million and above but less than N1 billion for goods, works and non consultant services respectively for national competitive bidding.
For request for quotation for goods,, works and non- consultant services, it is less than N30 million, less than N50 million and less than N30 million respectively.
In the above procurement/selection method and pre-qualification, thresholds for consultant services are not applicable.
For single source/direct contracting [for minor value procurements], the thresholds for goods, works, non consultant services and consultant services are less than N5 million, less than N5 million, less than N5 million and as indicated in the Public Procurement Act [PPA], 2007 respectively.
For pre-qualification, N500m and above, N1 billion and above, N500 million and above are thresholds for goods, works and non-consultant services respectively. Threshold for consultant services is not applicable herein.
For quality and cost-based procurement /selection method and pre-qualification, thresholds are not applicable for goods, works, and non-consultant services. Threshold is applicable for consultant services at N100 million and above.
The quality and cost-based procurement /selection method and pre-qualification thresholds apply to both consultant qualifications and least cost on equal measures.
The SGF said that the current approved thresholds superseded any extant operational thresholds except the special thresholds approved for expenditures related to the Nigerian National Petroleum Company Limited, which is in US Dollars and is self-adjusting to reflect the prevailing Naira equivalent values.
According to the circular, “it is instructive to note that the revised thresholds shall apply to the Three Arms of Government: the Executive, the Legislature and the Judiciary and their respective Tenders Boards.”
●Specific directives to BPP
The circular continued: “With the revision of the procurement method thresholds to reflect current economic realities and fast-track budget implementation by shifting more responsibilities to Accounting Officers and the Tenders Board, the Bureau [Bureau of Public Procurement-[BPP] has been directed to enforce the use of Open Competitive Bidding as the default method of procurement.”
The federal government called on all Ministries, Departments and Agencies [MDAs] to “note that the use of Restricted Tendering, Direct Procurement Methods shall be limited to projects that meet the statutory requirements stipulated in the PPA 2007.
“Additional guidelines shall subsequently be issued by the BPP on the appropriate use of these methods.”
It said that “in line with the Government’s commitment to ensure transparency, accountability, competition and value for money in public financial management, the BPP shall focus on prior and post reviews, procurement audit, surveillance and monitoring to guard against sanctions where necessary in line with the provisions of the Public Procurement Act [PPA 2007.
“The Audit Report will be forwarded to the National Assembly bi-annually in line with Section 5[p] of the PPA 2007.”
The circular added: “Further to the above, the Bureau shall henceforth conduct quality assurance of all procurement proceedings approved by the Ministerial Tenders Board [MTB] that do not require a Certificate of “No Objection”.
“Therefore, MTB approvals for procurements that fall below N1 billion for goods and services and N5 billion for works should be forwarded to the BPP for a review as a prerequisite to contract award.
“These should be accompanied with the Evaluation Reports, Minutes of MTB Meeting and draft Contract Agreements.”
The circular further directed Ministries/Extra-Ministerial bodies, parastatals, agencies and government-owned companies to ensure strict adherence to procurement processing timelines as stipulated in the circular for efficiency and timely budget implementation.
