The Bureau of Public Procurement revised Nigeria’s service-wide procurement thresholds and guidelines on May 21, 2025, giving ministries, departments and agencies, MDAs, more autonomy to approve contracts without waiting on lengthy central sign-off.
The change closes the gap between outdated rules and current economic realities. Inflation, naira depreciation, and rising costs had left the old limits too low, forcing even routine purchases through the Federal Executive Council for approval.
Under the new framework:
1. Higher approval limits: MDAs can now approve goods and consultancy contracts up to ₦5 billion and works contracts up to ₦10 billion without FEC approval. This shifts most routine contracts out of Abuja.
2. Clearer procurement methods: International or National Competitive Bidding is mandatory for goods from ₦1 billion and works from ₦5 billion. Requests for Quotations are allowed for goods and non-consultant services below ₦30 million, and works below ₦50 million. Pre-qualification kicks in at ₦500 million for goods/services and ₦1 billion for works.
3. Faster service delivery: A local health centre can now buy essential medicines, and a school can replace furniture, without months of waiting for Abuja’s approval.
The BPP says the goal is to improve budget performance by reducing bottlenecks that cause projects to stall or miss fiscal-year deadlines. Poor budget execution has long been a weak point in Nigeria’s public finance system.
—Safeguards and rollout—
To prevent abuse, the BPP is pairing the reform with updated guidelines, templates, and nationwide training for procurement officers and contractors. The Bureau maintains its monitoring and audit role to ensure MDAs exercise the new autonomy within the law.
Director-General Adebowale Adedokun said the revision aligned with President Bola Tinubu’s Renewed Hope Agenda of adaptive, results-focused governance.
The reform doesn’t eliminate oversight – it shifts it. Central approval is reserved for high-value contracts, while lower-value spending moves faster at the MDA level, with transparency and accountability built into the process.
If implemented consistently, the change could shorten procurement timelines, improve service delivery, and ensure budgeted funds are actually spent on projects they were meant for.
● Sufuyan Ojeifo is a journalist, publisher and communication consultant.
