President Bola Ahmed Tinubu has announced that contracts and procurement of goods and services worth less than N5 billion will no longer need approval from the Federal Executive Council.
This was disclosed in a statement by the spokesperson of the Bureau of Public Procurement, Zira Nagga, on Thursday.
The fresh procurement thresholds mean that ministries, departments, and agencies will now have to adjudicate their procurement status to below N5 billion.
BPP also noted that international or national competitive bidding must procure goods valued at N1 billion and above and works valued at N5 billion and above.
According to the federal government’s agency, the new procurement guidelines are necessary to streamline bureaucracy and enhance efficiency.
It added that the procurement guidelines are subject to periodical reviews and warned against defaulting.
“Under the new structure, only contracts valued at N5bn and above for goods and consultancy services and N10bn and above for works will require FEC approval. Projects below these thresholds will be processed at the Ministerial Tenders Board, Parastatal Tenders Board, 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.”
“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.”
“Those who decide to flout, abuse, or frustrate the implementation of these revised thresholds will be recommended to Mr President for administrative sanctions, as it will no longer be business as usual.”
This comes after Tinubu approved the Nigerian First Policy and ban on the importation of foreign goods.
