Contracts below N5bn no longer need FEC approval – Tinubu

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President Bola Ahmed has declared that the Federal Executive Council will no longer need to approve contracts and procurements for goods and services under the value of N5 billion.

This update was shared in a statement issued on Thursday by Zira Nagga, spokesperson for the Bureau of Public Procurement (BPP).

With the newly established procurement limits, ministries, departments, and agencies are now expected to manage procurement processes independently for transactions below N5 billion.

The BPP further stated that competitive bidding whether national or international will now apply to goods worth N1 billion or more, and to construction or infrastructural projects valued at N5 billion or above.

The federal agency explained that these changes aim to cut down bureaucratic delays and boost operational effectiveness.

It also emphasized that the procurement framework will undergo regular evaluations and cautioned that violations of the guidelines will not be tolerated.

“Under the new structure, only contracts valued at N5bn and above for goods and consultancy services and N10bn and above for works will require FEC approval. Projects below these thresholds will be processed at the Ministerial Tenders Board, Parastatal Tenders Board, and by the Accounting Officers based on their respective costs.

“These thresholds will, however, be subject to periodic reviews, either upward or downward, depending on prevailing economic realities to ensure the stability of procurement processes.”

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“For smaller procurements, Requests for Quotations are permitted for goods and non-consultant services valued below N30 million and works valued below N50 million. In addition, the threshold for prequalification has been set at N500 million and above for goods and non-consultant services and N1 billion and above for works.”

“Those who decide to flout, abuse, or frustrate the implementation of these revised thresholds will be recommended to Mr President for administrative sanctions, as it will no longer be business as usual.”

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