In a move aimed at modernising Nigeria’s public procurement framework and improving budget implementation, President Bola Ahmed Tinubu has approved a comprehensive upward review of procurement thresholds for federal ministries, departments, and agencies (MDAs).
The newly revised thresholds, announced Wednesday by the Bureau of Public Procurement (BPP), reflect prevailing economic realities such as inflation and shifting market dynamics, and are expected to significantly ease bureaucratic bottlenecks in the public contracting process.
According to the Director-General of the BPP, Dr. Adebowale Adedokun, the reform is a direct outcome of the President’s Renewed Hope Agenda and will enhance service delivery while promoting transparency and accountability.
“This is a decisive shift to empower MDAs, streamline procurement procedures, and decongest the Federal Executive Council (FEC) from routine contract matters. With these new thresholds, we are prioritising efficiency, value for money, and timely project delivery”, Dr. Adedokun said.
A statement issued by Head of Public Relations at the BPP, Zira Zakka Nagga, said under the revised structure, only contracts valued at ₦5 billion and above for goods and consultancy services, and ₦10 billion and above for works, will require FEC approval.
Contracts below these thresholds will now be handled by ministerial and parastatal tenders boards or accounting officers, depending on cost.
For instance, ministerial tenders boards can now approve goods and consultancy contracts valued between ₦50 million and less than ₦1 billion, while parastatal tenders boards are authorised to approve similar contracts up to ₦500 million.
Accounting officers, such as permanent secretaries or directors-general, can handle smaller procurements below these amounts.
“This delegation of responsibility will help reduce delays in contract awards and improve budget absorption rates,” Adedokun said.
The BPP also announced a revision of procurement methods to align with the new thresholds.
International or national competitive bidding is now mandatory for goods worth ₦1 billion and above, and for works valued at ₦5 billion and above.
For procurements below these figures, alternative methods such as requests for quotations and shopping (market survey) are permitted.
Additionally, 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.
Consultant services will be procured using methods like quality and cost-based selection for contracts above ₦100 million.
“The reform is also about strengthening the ease of doing business and stimulating economic growth. By simplifying processes and encouraging competition, we can create more jobs and support local businesses”, the BPP DG stated.
President Tinubu’s approval includes provisions to promote the Nigeria First/Local Content Policy, ensuring that locally manufactured goods and services are prioritized in federal procurements.
According to the BPP, new guidelines will soon be issued to foster community-based and affirmative procurement for micro, small, and medium enterprises (MSMEs), women, and persons with disabilities.
“Local content is a cornerstone of these reforms. We want to build capacity, promote indigenous industries, and reduce our dependency on foreign products”, Adedokun said.
As part of the reform, all MDAs are now required to publish monthly procurement reports on both their websites and the BPP’s portal.
The reports must include details of contracts awarded and will be submitted to the highest authorities across the executive, legislature, and judiciary.
“This new requirement promotes transparency and accountability. It ensures that oversight bodies have access to real-time procurement data and can track performance”, Adedokun said.
To facilitate smooth implementation, MDAs are directed to allocate budgetary provisions for the training of procurement officers.
Only BPP-approved trainers—individuals, firms, or institutions—will be authorised to conduct such training to ensure consistency with the Public Procurement Act (PPA) 2007.
“All procurements under the 2025 budget and subsequent ones must follow the revised bidding documents and contract conditions provided by the BPP,” the statement said.
The BPP will also invoke its powers under Section 6(e) of the Procurement Act to debar contractors involved in fraudulent or corrupt practices or who frustrate project implementation.
Furthermore, the Bureau will collaborate with the Office of the Head of Civil Service of the Federation to enforce conduct rules for procurement officers and recommend disciplinary actions where needed.
The Office of the Secretary to the Government of the Federation is also expected to issue a service-wide circular to guide MDAs in implementing the new thresholds.
“These reforms place a higher degree of responsibility on MDAs to act with integrity. Those who attempt to flout or sabotage the revised thresholds will face administrative sanctions. It is no longer business as usual”, Adedokun emphasised.
The BPP said it is also enhancing its regulatory role, shifting its focus from implementation to oversight, monitoring, procurement audits, and post-review activities.
These will be conducted in collaboration with anti-corruption agencies and other stakeholders.
With the new procurement thresholds taking immediate effect, the Tinubu administration aims to not only boost the performance of Nigeria’s procurement ecosystem but also lay the foundation for a more responsive and transparent governance structure.
“All stakeholders—MDAs, contractors, procurement officers—must align with this new direction. Together, we can ensure the success of the Renewed Hope Agenda and deliver real value to Nigerians”, Adedokun concluded.
