President Bola Ahmed Tinubu has approved a major reform in Nigeria’s public procurement process, announcing that contracts and procurement of goods and services valued below ₦5 billion will no longer require the approval of the Federal Executive Council (FEC).
The update was disclosed in a statement on Thursday by Zira Nagga, spokesperson for the Bureau of Public Procurement (BPP).
Under the new structure, ministries, departments, and agencies (MDAs) will now handle contracts valued below ₦5 billion for goods and consultancy services, and below ₦10 billion for works without recourse to FEC approval. These will instead be processed through Ministerial and Parastatal Tenders Boards or by Accounting Officers, depending on the value.
The BPP noted that these thresholds aim to streamline bureaucracy, fast-track project delivery, and enhance procurement efficiency. However, it added that the guidelines are subject to periodic review in line with economic realities.
For smaller procurements, the statement clarified:
Requests for Quotations (RFQs) are allowed for goods and non-consultancy services under ₦30 million, and for works under ₦50 million.
Prequalification is now mandatory for contracts starting from ₦500 million (goods/services) and ₦1 billion (works).
The BPP also issued a stern warning, stating:
“Those who flout, abuse, or frustrate the implementation of these revised thresholds will be recommended to Mr President for administrative sanctions. It will no longer be business as usual.”
This policy shift follows Tinubu’s recent approval of the “Nigerian First” policy and a ban on the importation of certain foreign goods, signaling a stronger push toward economic nationalism and procurement reform.
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