he Federal Government has approved the revision of the subsisting Prior Review and Monetary Thresholds for service-wide application for procurement of goods, works and services.
by Okeoghene Akubuike
The Federal Government has approved the revision of the subsisting Prior Review and Monetary Thresholds for service-wide application for procurement of goods, works and services.
The approval is a sequel to government’s deliberate bid to ensure sustained and realistic procurement outcomes in the face of current economic realities and to enhance budget implementation and ease of doing business.
The approval is contained in a circular directed to relevant officials and offices, dated May 27, and signed by the Secretary to the Government of the Federation [SGF], Sen. George Akume.
Akume said the current approved procurement thresholds supersedes any extant operational threshold except the special thresholds approved for expenditures related to the NNPC Ltd. which is in US Dollars and is self-adjusting to reflect the prevailing Naira equivalent values.
He said the revised thresholds would apply to the Three Arms of Government, the Executive, the Legislature and the Judiciary and their respective tenders boards.
The SGF said that revising the procurement method threshold aims to ensure sustainable and realistic procurement outcomes given current economic realities, while also enhancing budget implementation and facilitating ease of doing business.
He said the Bureau of Public Procurement (BPP) has been directed to enforce the use of Open Competitive Bidding as the default method of procurement.
“Therefore, MDAs should note that the use of Restricted Tendering, Direct Procurement, Direct Labour and Emergency Procurement Methods shall be limited to projects that meet the statutory requirements stipulated in the PPA, 2007.
“Additional guidelines shall subsequently be issued by the BPP on the appropriate use of these methods.”
Akume said the BPP would focus on prior and post reviews, procurement audits, surveillance and monitoring to guard against abuse of procurement processes and to enforce appropriate sanctions where necessary in line with the provisions of the PPA 2007.
The SGF said the Audit Report would be forwarded to the National Assembly bi-annually in line with Section 5(p) of the PPA, 2007.
“Further to the above, the bureau shall henceforth conduct quality assurance of all procurement proceedings approved by the Ministerial Tenders Boards (MTB) that do not require a Certificate of “No Objection”.
“Therefore, MTB approvals for procurements that fall below N1 billion for Goods and Services and N5 billion for Works should be forwarded to the BPP for review as a prerequisite to contract award.
“These should be accompanied with evaluation reports, minutes of MTB meetings and draft contract agreements.
Akume said that given the foregoing, Ministries/Extra-Ministerial Bodies, Parastatals, Agencies and Government-owned companies were to ensure strict adherence to procurement processing timelines as stipulated.
“To this end, MDAs are required to furnish the bureau with quarterly procurement progress reports to enable the bureau track the progress of their procurement activities and ensure that procurements are implemented within the stipulated timelines.
He said procuring entities were further directed to issue notification of award to successful bidders and immediately debrief unsuccessful bidders.
“Additionally, in accordance with the provisions of the PPA, 2007, procuring entities must publish the details of all contract awards on their website and the website of the bureau monthly.”
The SGF said MDAs were to ensure projects that fall within the National Competitive Bidding Threshold and below, such procurements shall comply with the Government’s “Nigeria First” policy.
“In other words, MDAs shall give preference to goods made in Nigeria and the use of local companies in the delivery of works and services.
“These goods, works and services must, however, conform to international standards and be certified by relevant government agencies charged with the statutory responsibilities to supervise those sectors.”
He said the government would no longer allow non-performing and dishonest contractors to participate in public procurement processes.
“Consequently, the BPP will debar any supplier, contractor or service provider that fails to deliver a contract satisfactorily; deliberately abandons a contract, or obtains a contract through corrupt, fraudulent, collusive, coercive/obstructive practice.”
Akume said accounting officers would be responsible for the direct supervision of all procurement processes, while the political heads of ministries have the statutory duty to confirm approvals by the respective tenders boards.
He said the federal government was reiterating the need for timely completion of procurement activities for the Financial Year 2024 and early commencement of procurement activities for the Financial Year 2025, as conveyed in previous Circulars.
“ These activities should now take into consideration the newly revised thresholds.”(NAN)