Tinubu Reforms Nigeria’s Procurement Thresholds, FEC Approvals Start at N5 Billion
Abuja, May 16, 2025 — President Bola Ahmed Tinubu has approved a major overhaul of Nigeria’s public procurement thresholds, streamlining the contracting process for federal Ministries, Departments, and Agencies (MDAs). The reform, announced by the Bureau of Public Procurement (BPP) on Thursday, mandates that only contracts valued at N5 billion and above for goods and consultancy services, and N10 billion and above for works, require Federal Executive Council (FEC) approval.
The new framework delegates lower-value contracts to Ministerial Tenders Boards (MTBs), Parastatal Tenders Boards (PTBs), and accounting officers, aiming to reduce bureaucratic delays and enhance efficiency. Contracts from N50 million to N1 billion for goods and services, and N50 million to N2.5 billion for works, will be approved by MTBs, while smaller procurements below N30 million for goods and non-consultant services, and N50 million for works, can use Requests for Quotations.
Dr. Adebowale Adedokun, BPP Director-General, emphasized that the reforms align with Tinubu’s Renewed Hope Agenda, addressing inflation and market dynamics to speed up project delivery while promoting transparency. Competitive bidding is now mandatory for goods above N1 billion and works above N5 billion, with prequalification thresholds set at N500 million for goods/services and N1 billion for works. MDAs must submit monthly procurement reports to the BPP and publish them online.
The policy builds on Tinubu’s Nigeria First Policy, which prioritizes local goods and services to boost domestic industries. MDAs are barred from procuring foreign alternatives without BPP waivers, and contracts lacking local options must include technology transfer or skills development clauses. Non-compliance will face sanctions, including recommendations for administrative penalties to the president.
Critics, however, point to past transparency issues under Tinubu’s administration, noting that FEC-approved contracts often lack details on contractors or costs, violating the Public Procurement Act. The BPP’s non-functional website further hampers accountability, raising concerns about enforcement.
The reforms, effective immediately, apply across all government sectors, including defense and judiciary, and cover all funding sources. The BPP is finalizing guidelines for community-based and preferential procurement to support women, persons with disabilities, and MSMEs, with periodic threshold reviews planned to reflect economic realities.
