Tinubu overhauls public procurement thresholds, FEC to approve contracts from N5 billion

The Special Assistant to the President on social media, Dada Olusegun, disclosed this in a statement posted on his X page on Friday.

Under the new regime, the Federal Executive Council (FEC) will be responsible for approving contracts from N5 billion and above for goods and services, and N10 billion and above for works.

The Presidency said the new rules are designed to streamline procurement, decentralize contract approvals, and enhance transparency across Ministries, Departments, and Agencies (MDAs).

According to Dada, the contract approval responsibilities are now more decentralized across the different layers of government.

The new framework also clarifies the procurement methods to be adopted by MDAs based on contract values.

According to the new framework, projects valued at N1 billion and above for Goods and Services and those valued at N5 billion and above for Works must go through the National and International Competitive Bidding process.

It added that such projects must also have requests for quotations and prequalification requirements.

For projects from N500 million for Goods and Services, and N1 billion for Works, this must go through Consultancy.

In addition, the MDAs must publish monthly procurement reports on their websites and the BPP portal, including all awarded contracts for transparency and accountability.

It added that MDAs must also budget for procurement training using only BPP-accredited trainers.

The Presidency noted that the MDAs are also expected to prioritize local goods and contractors in all federal procurements in line with the administration’s Nigeria First Policy.

This is expected to boost local industries and create job opportunities, in line with the administration’s broader economic strategy.

Naijaonpoint earlier reported that President Bola Tinubu had announced that the Federal Government will bar all Ministries, Departments, and Agencies (MDAs) from procuring foreign goods and services where local alternatives exist.

This move was part of a broader effort to strengthen local industries and reduce import dependency.