The Bureau of Public Procurement (BPP) has revised its procurement thresholds for ministries, departments, and agencies (MDAs) as part of reforms to streamline processes and improve budget execution.

In a statement on Thursday, Zira Nagga, head of public relations at the BPP, said the review, approved by President Bola Tinubu, responds to rising inflation, shifting market dynamics, and the need to reduce bureaucratic delays in project delivery.

Nagga said under the new thresholds, only contracts valued at N5 billion and above for goods and consultancy services, and N10 billion and above for works, will require federal executive council (FEC) approval.

He said projects below the said values will be handled at the ministerial or parastatal level.

“With these adjustments, more procurement responsibilities will now be delegated to ministerial and parastatal tenders boards and accounting officers—thus decongesting the FEC of routine procurement matters and allowing it to focus on broader national policy issues,” the statement reads.

The bureau said the president also approved new thresholds for procurement methods.

Under the revised guidelines, according to the statement, international or national competitive bidding will now be required for goods worth N1 billion and above, and works worth N5 billion and above.

“For smaller procurements, requests for quotations are allowed for goods and non-consultant services below N30 million, and works below N50 million,” the BPP said.

“The threshold for prequalification has been pegged at N500 million for goods and services, and N1 billion for works.”

‘REFORMS WILL SUPPORT ECONOMIC GROWTH ‘

Speaking on the development, Adebowale Adedokun, BPP director-general (DG), said the reforms aim to improve efficiency, support economic growth, and facilitate the ease of doing business.

“These reforms reflect Mr President’s commitment to strengthening institutions, reducing wastage, and ensuring value for money in public expenditure,” Adedokun said.

The BPP DG said the new thresholds apply across the executive, legislature, judiciary, and defence and intelligence communities, in line with the Finance Act of 2020.

“The rules will also cover projects funded through internally generated revenue (IGR), donations, and grants,” he added.

Adedokun said the BPP will soon issue guidelines for community-based and preferential procurements to support small businesses, women, and persons with disabilities, as well as measures to prioritise local content and Nigerian-made goods in all government purchases.

He noted that the thresholds take immediate effect and will be subject to periodic review depending on economic realities.

“With the approval of these revised thresholds, the bureau is now positioned to focus on other critical regulatory functions such as procurement audits, surveillance, and professionalisation of the procurement cadre,” the DG said.

He added that the BPP will collaborate with anti-corruption agencies nationwide to strengthen procurement oversight.

[TheCable]