Paragraph 1: Introduction and Context
The Bureau of Public Procurement (BPP) in Nigeria has announced a significant overhaul of public procurement thresholds for all federal Ministries, Departments, and Agencies (MDAs). This reform, approved by President Bola Tinubu, aims to address the challenges of bureaucratic delays and inefficiencies that have plagued Nigeria’s public procurement system. The revisions are a direct response to current economic realities, including escalating inflation and evolving market conditions. The overarching goal is to streamline procurement processes, reduce bottlenecks, and accelerate contract awards, ultimately leading to more effective budget execution and improved service delivery.
Paragraph 2: Decentralization and Empowerment
A core element of the revised framework is the decentralization of procurement authority. Previously, the Federal Executive Council (FEC) was burdened with approving even relatively small contracts, creating a significant backlog and diverting attention from crucial national policy discussions. The new thresholds empower Ministerial Tenders Boards, Parastatal Tenders Boards, and Accounting Officers to approve contracts below specified monetary limits. This delegation of responsibility aims to decongest the FEC, allowing it to concentrate on strategic national issues while simultaneously expediting procurement processes within individual MDAs.
Paragraph 3: New Thresholds and Procurement Methods
Under the revised structure, contracts requiring FEC approval are those valued at N5 billion and above for goods and consultancy services, and N10 billion and above for works. This represents a substantial shift in authority, granting greater autonomy to MDAs in managing their procurement needs. Furthermore, the reforms introduce adjustments to procurement methods. International or National Competitive Bidding is now mandatory for goods contracts valued at N1 billion and above and works contracts valued at N5 billion and above. For smaller procurements, more flexible methods like Requests for Quotations or Shopping (Market Survey) are permitted, further streamlining the process for less complex acquisitions.
Paragraph 4: Flexibility and Oversight
Recognizing the dynamic nature of economic conditions, the revised thresholds will undergo periodic reviews, allowing for adjustments upwards or downwards. This flexibility ensures that the procurement framework remains relevant and responsive to prevailing market forces. Crucially, increased transparency and accountability mechanisms are incorporated into the new system. MDAs are now mandated to publish monthly procurement reports, including details of awarded contracts, on their websites and the BPP portal. This public accessibility of information will facilitate oversight by higher authorities and promote transparency in public spending.
Paragraph 5: Enforcement and Capacity Building
The BPP is committed to robust enforcement of the new thresholds, with severe consequences for those who attempt to circumvent or undermine the revised procedures. Administrative sanctions, including recommendations to the President for disciplinary action, will be pursued against individuals who flout the regulations. Complementing these enforcement measures are initiatives to support inclusive procurement practices. The BPP will issue guidelines for community-based and affirmative procurements, designed to empower micro, small, and medium enterprises (MSMEs), women, and persons with disabilities. Furthermore, rigorous oversight of procurement training will be implemented, with only BPP-approved individuals and institutions authorized to conduct such training, ensuring standardized best practices across the public sector.
Paragraph 6: Collaboration and Future Outlook
The BPP emphasizes its commitment to supporting stakeholders through the transition to the new framework, offering assistance with interpretation and implementation. Collaboration with anti-corruption agencies will enhance monitoring, audit, and enforcement efforts, including the debarment of contractors found to be engaging in corrupt practices. The revised thresholds are expected to significantly impact Nigeria’s public procurement landscape, promoting local content policies, strengthening institutional accountability, and ultimately fostering a more efficient and transparent system that delivers value for public funds. The BPP underscores its commitment to the principles of transparency, accountability, and value for money in all public procurement activities.
