BPP tightens rules on contract variations, says no more backdoor cost inflation

The Bureau of Public Procurement (BPP) has released new guidelines to stop contractors from inflating costs and expanding project scope through unapproved contract variations.

The rules, approved by the Federal Executive Council and circulated in Dec 2025, put BPP in charge of reviewing and certifying all requests to change contract sums or scope across federal MDAs.

The new framework replaces the 2013 guidelines that required presidential approval for variations above 15% of the contract value or ₦1 billion. Now, the Approving Authority depends on service-wide thresholds set in May 2025.

What’s changing:

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1. Everything goes through BPP first
MDAs must submit variation orders, fluctuation claims, and scope changes to BPP for a Certificate of No Objection. Nothing moves to the Tenders Board or FEC without it.

2. Tighter approval thresholds

The variation amount, not the total contract cost, decides who approves:
– ₦10bn and above: FEC/NJC/NASS Tenders Board
– ₦5bn to ₦10bn: Ministerial Tenders Board/NASS
– ₦75m to ₦5bn: Parastatal/Judicial Tenders Board

Smaller variations under ₦75m for works and ₦50m for goods/services can be approved by Accounting Officers.

3. Only genuine, unforeseen changes qualify

Variations will be approved if they’re necessary, couldn’t have been foreseen, and don’t change the original contract scope. Flaws from poor planning or last-minute additions won’t fly. New work must be tendered separately.

4. Final designs are mandatory

BPP says all procurements must use approved final designs. Using preliminary or faulty designs that cause avoidable variations will attract sanctions.

5. Fluctuation claims under watch

Claims for labour, materials, and exchange rate changes must follow contract terms. Contractors who deliberately delay projects to claim fluctuations risk being denied and debarred.

6. Full disclosure required

MDAs must publish contractor names, original and revised sums, and reasons for increases within 30 days of approval. BPP will also report approved variations to FEC periodically.

Certificates are valid for six months. Any variation processed without BPP clearance will attract sanctions under the Procurement Act, including suspension of officers and debarment of contractors.

BPP DG Dr. Adebowale Adedokun said the move backs the Renewed Hope Agenda’s push for fiscal discipline and value for money.

“Variations must not become a backdoor for cost inflation and scope creep,” he said. “Every adjustment to a public contract must be necessary, justified, and deliver value to Nigerians.”

The policy takes effect immediately and applies to all ongoing projects, no matter when they started.