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President Bola Tinubu has announced new procurement guidelines, exempting contracts below N5 billion from Federal Executive Council (FEC) approval.
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Only contracts valued at N5 billion and above for goods and consultancy services, and N10 billion and above for works, will require FEC approval.
President Bola Tinubu has introduced new procurement guidelines, allowing ministries, departments, and agencies to process contracts worth less than N5 billion without Federal Executive Council (FEC) approval.
This development is part of Tinubu’s Renewed Hope Agenda, aimed at improving budget implementation and public service delivery efficiency.
According to the Bureau of Public Procurement (BPP), the revised thresholds are necessary to streamline bureaucracy and enhance efficiency.
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Under the new structure, contracts valued at N5 billion and above for goods and consultancy services, and N10 billion 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 Accounting Officers based on their respective costs.
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The BPP noted that international or national competitive bidding must procure goods valued at N1 billion and above, and works valued at N5 billion and above. For smaller procurements, Requests for Quotations are permitted for goods and non-consultant services valued below N30 million and works valued below N50 million.
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,” the BPP warned.
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