President Bola Ahmed Tinubu has announced a major shift in Nigeria’s procurement policy, stating that contracts and procurement of goods and services valued below N5 billion will no longer require the approval of the Federal Executive Council (FEC).
The development was made public through a statement released on Thursday by Zira Nagga, spokesperson for the Bureau of Public Procurement (BPP).
According to the BPP, the new procurement thresholds are designed to reduce bureaucratic bottlenecks and enhance efficiency across Ministries, Departments, and Agencies (MDAs). Under the revised guidelines, MDAs can now process contracts under N5 billion without seeking FEC approval.
However, any procurement involving goods worth N1 billion and above or works valued at N5 billion and above must still go through international or national competitive bidding.
The BPP emphasized that contracts valued at N5 billion and above for goods and consultancy services, and N10 billion and above for works, will still require FEC approval. All projects below these thresholds will be handled by the Ministerial Tenders Board, Parastatal Tenders Board, or Accounting Officers, depending on their cost.
“These thresholds will be reviewed periodically—either upward or downward—based on prevailing economic conditions, to ensure procurement processes remain stable and efficient,” the agency stated.
For smaller procurements, the new guidelines allow Requests for Quotations for goods and non-consultancy services below N30 million, and for works below N50 million. The prequalification threshold has been set at N500 million and above for goods and non-consultancy services, and N1 billion and above for works.
The BPP warned that any attempt to flout or frustrate the implementation of these revised thresholds will result in administrative sanctions, with offenders to be reported directly to the President.
This policy update follows President Tinubu’s recent approval of the Nigerian First Policy, which includes a ban on the importation of foreign goods to promote local content.
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