Tinubu Approves New Procurement Thresholds for Federal MDAs
President Bola Ahmed Tinubu has approved changes to public procurement thresholds for Ministries, Departments, and Agencies (MDAs) of the Federal Government to adjust contract approval levels.
According to a statement signed by Dada Olusegun, Special Assistant to the President on Social Media, the new thresholds will decentralize procurement approvals, allowing the Federal Executive Council (FEC) to focus on national policy issues instead of routine contract decisions.
The statement explained, “The decentralisation is designed to allow the FEC to focus on high-level national policy issues rather than routine contract approvals.”
Under the new arrangement, the FEC will approve contracts valued at ₦5 billion and above for goods and services, and ₦10 billion and above for works. Ministerial Tenders Boards will handle contracts ranging from ₦50 million to just below ₦1 billion for goods and services, and ₦50 million to less than ₦2.5 billion for works.
Parastatal Tenders Boards will approve contracts up to ₦500 million for goods and services, and up to ₦1 billion for works. Accounting Officers are authorized to approve contracts below ₦50 million for goods and services, and under ₦100 million for works.
On procurement methods, the statement clarified, “National and International Competitive Bidding will apply to contracts of ₦1 billion and above for goods and services, and ₦5 billion and above for works.” For smaller procurements, “Requests for Quotations, also known as Shopping, will be used.”
The statement also outlined prequalification requirements: “Goods and services contracts valued at ₦500 million and above, and works contracts from ₦1 billion, must meet prequalification standards.” Consultancy contracts of ₦100 million or more will use the Quality and Cost-Based Selection (QCBS) method.
MDAs are now required to publish monthly procurement reports on their websites and the Bureau of Public Procurement (BPP) portal. These reports must include details of all awarded contracts.
“MDAs must budget for procurement training using only BPP-accredited trainers,” the statement added.
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