News Investigators/ The Bureau of Public Procurement (BPP) has announced the newly revised public procurement threshold for Ministries, Departments, and Agencies (MDAs) of the Federal Government to reflect current economic realities.
This is contained in a statement issued by Zira Nagga, Head, Public Relations, BPP, in Abuja on Thursday.
The statement said the approval followed the recommendations of the BPP under the leadership of the Director-General(D-G), Adebowale Adedokun.
It said the development marked a significant stride towards improving budget implementation, streamlining procurement processes, and enhancing public service delivery efficiency in Nigeria’s evolving economic landscape.
The statement said the revised thresholds directly responded to rising inflation, shifting market dynamics, and the pressing need to reduce bureaucratic bottlenecks that impede timely contract awards and budget execution.
“With these adjustments, more procurement responsibilities will now be delegated to Ministerial and Parastatal Tenders Boards and Accounting Officers. thus decongesting the Federal Executive Council (FEC) of routine procurement matters and allowing it to focus on broader national policy issues.
“Under the new structure, only contracts valued at N5 billion and above for Goods and Consultancy Services and N10 billion and above for Works will require FEC approval.
“Projects below these thresholds will be processed at the Ministerial Tenders Board (MTB), Parastatal Tenders Board (PTB), and by the accounting officers based on their respective costs.
“ These thresholds will, however, be subject to periodic reviews, either upward or downward, depending on prevailing economic realities to ensure the stability of procurement processes.”
It said President Bola Tinubu also approved new thresholds for procurement methods aimed at streamlining and enhancing the efficiency of the procurement process.
The statement said under the revised guidelines, International or National Competitive Bidding must procure goods valued at N1 billion and above and works valued at N5 billion and above.
It said for smaller procurements, Requests for Quotations are permitted for goods and non-consultant services valued below N30 million and works valued below N50 million.
“In addition, the threshold for prequalification has been set at N500 million and above for goods and non-consultant services, and N1 billion and above for works.
The statement said these reforms directly responded to the urgent need to facilitate the ease of doing business, promote economic growth, and foster employment through efficient and timely procurement practices.
“They also reflect Mr President’s commitment to strengthening institutions, reducing wastage, and ensuring value for money in public expenditure.”
The statement quoted Adedokun as reiterating the bureau’s readiness to provide continuous clarification and technical guidance to all MDAS and stakeholders involved in procurement activities.
“The BPP remains open and accessible to all stakeholders seeking interpretation, clarification, or assistance in implementing these new thresholds.
“ We aim to ensure that all public procurement is carried out per the principles of transparency, accountability, and value for money.”
The D-G further clarified that the scope of application of the new revised thresholds shall apply to the Executive, Legislative and Judiciary Arms of Government, and the Defence and Intelligence Communities, as stipulated in the Finance Act, 2020.
“Also in line with the objective of the Bureau to harmonise existing government policies and practices on public procurement, these new revised thresholds shall supersede any other subsisting threshold issued by the Federal Government.
“Also, the thresholds apply to other sources of funding, including Internally Generated Revenues (IGR), donations and gifts.”
Adedokun said the bureau would soon issue guidelines for community-based and preferential procurements to support micro, small, and medium enterprises, women, and persons with disabilities in line with the new thresholds.
“ The bureau will also issue guidelines to address timelines for completion of procurement processes to ensure implementation of these new thresholds is not impeded by dilatory conduct and bureaucratic red tape.
“Furthermore, with these revised thresholds, the bureau shall issue modalities to expedite the implementation of Nigeria First/Local Content Policy of this administration.
“This is designed to prioritise locally manufactured goods and services in all government procurements to promote domestic production, support indigenous industries, and reduce dependence on foreign products.
According to the D-G, the revision of these procurement thresholds, as approved by President Tinubu, takes immediate effect and is expected to bolster the overall performance of Nigeria’s procurement ecosystem.
Adedokun said this would also enhance the regulatory oversight of the BPP without unnecessary involvement in implementation processes.
“With the approval of these revised thresholds, the bureau is now positioned to focus on other critical regulatory functions such as post-review, procurement audit, procurement surveillance, monitoring and evaluation and professionalisation of the procurement cadre.
“ Some of these activities will be done in collaboration with sister Anti-Corruption Agencies that have a presence in all the Geo-Political Zones to enhance effectiveness and efficiency.”
NAN