…Only N5bn contracts and above for goods, consultancy, and
…N10 billion and above for works shall require FEC approval
A comprehensive review of public procurement thresholds for ministries, departments and agencies (MDAs) of the
federal government approved by President Bola Ahmed Tinubu on Thursday showed, among others, that only N5bn contracts and above for goods and consultancy services and N10 billion and above for works shall require the approval of the Federal Executive Council (FEC) henceforth.
A statement by the Head ofPublic Relations in the Bureau of Public Procurement (BPP), Zira Zakka Nagga, which disclosed that the approval was the fallout of recommendations by BPP’s
Director-General, Dr Adebowale Adedokun, described the approval as a significant milestone in the effort to bolster budget
implementation, streamline procurement processes and enhance public service delivery efficiency in Nigeria’s evolving economic landscape.
According to the statement, the revised procurement process was in response to
persistent inflation, shifting market dynamics and the pressing need to ease bureaucratic bottlenecks, which it said had made contract awards and budget execution complex and
complicated.
It also explained that with the review, President Tinubu simplifies procurement process.
Ministerial and parastatal tenders’ boards and accounting officers can now handle more procurement processes, relieve the Federal Executive Council (FEC) of routine procurement matters and leave it with more time to focus on serious policy issues.
Nagga said: “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.”
[NOA’s “The Explainer”]
