Tinubu Approves New Procurement Thresholds: FEC No Longer Required for Contracts Below N5 Billion

In a bid to streamline public procurement processes and reduce bureaucratic bottlenecks, President Bola Ahmed Tinubu has approved a major reform to Nigeria’s procurement thresholds, eliminating the requirement for Federal Executive Council (FEC) approval for contracts, goods, and services valued below ₦5 billion.

This was disclosed on Thursday by Zira Nagga, spokesperson for the Bureau of Public Procurement (BPP), in an official statement.

Under the revised framework:

• Goods and consultancy services valued below ₦5 billion no longer require FEC approval.

• Works valued below ₦10 billion can also bypass FEC scrutiny.

• Contracts exceeding these thresholds will still undergo FEC approval.

• Projects below these limits will now be handled by Ministerial Tenders Boards, Parastatal Tenders Boards, or by Accounting Officers, depending on the cost.

For smaller procurements:

• Requests for Quotations (RFQ) are permitted for goods and non-consultancy services below ₦30 million and works below ₦50 million.

• Prequalification thresholds are now set at ₦500 million and above for goods and services, and ₦1 billion and above for works.

The BPP cautioned that any public officials or agencies who violate these new thresholds or attempt to frustrate the reforms will face administrative sanctions, including referral to the President for disciplinary action.

“These thresholds will be subject to periodic reviews—upward or downward—based on prevailing economic realities,” the BPP stated, adding that the new rules aim to improve efficiency, transparency, and local industry participation.

Aligned with 'Nigeria First' Policy

This procurement reform follows closely on the heels of President Tinubu’s Nigeria First Policy, which prioritizes local content and bans unnecessary imports of products that can be sourced or produced domestically.

“It will no longer be business as usual,” the statement emphasized, reinforcing the government’s push for efficient, transparent, and national-interest-driven procurement processes.