Streamlined Procurement in Nigera: President Tinubu's New Regulations
Federal Approval Now Necessary for Contracts Valued Over 5 Billion Nigerian Naira - Government Statement
In a bid to boost efficiency and cut down bureaucratic red tape, President Bola Ahmed Tinubu has signed off on revised procurement guidelines for Nigeria. This new regime aims to foster transparency while adapting to economic fluctuations.
Key Modifications in the Updated Framework
- FEC Approval Thresholds
- Contracts for goods and consultancy services priced at ₦5 billion or above, and works valued at ₦10 billion or more, necessitate approval from the Federal Executive Council (FEC)[1][2][3].
- The restructuring intends to delegate minor contract matters to other authorities, freeing up the FEC to focus on broader policy concerns[2][3].
- Ministerial Tenders Board Approvals
- These boards will oversee approvals for contracts involving goods and consultancy services valued between ₦50 million and less than ₦1 billion, and works priced between ₦50 million and less than ₦2.5 billion[1][3].
- Parastatal Tenders Board Approvals
- Contracts for goods and consultancy services valued up to ₦500 million, and works valued up to ₦1 billion, will be subject to the approval of Parastatal Tenders Boards[1][3].
- Accounting Officers' Approvals
- Accounting Officers of Ministries, Departments, and Agencies (MDAs) will handle approvals for contracts below ₦50 million for goods and consultancy services, and below ₦100 million for works[1][3].
- Procurement Methods
- For contracts with goods valued at ₦1 billion or more, and works priced at ₦5 billion or above, international or national competitive bidding is compulsory[2][3].
- Smaller procurements may resort to Requests for Quotations or Shopping (Market Survey)[2].
FEC's Role and Contract Deals Under the New Framework
By escalating the threshold for FEC approval, this revised framework significantly alters the FEC's role in contract endorsements. Fewer routine contract matters will now be presented to the FEC, allowing it to concentrate on high-level policy issues[1][3]. This redistribution of contract approvals to Ministerial and Parastatal Tenders Boards and Accounting Officers is anticipated to decrease bureaucratic hold-ups and boost efficiency in the procurement process[2][3]. Comprehensively, the reforms are designed to streamline budget execution, eliminate bottlenecks, and strengthen transparency in the public procurement system[3][4].
- Under President Tinubu's new regulations, the Federal Executive Council (FEC) will no longer handle contract approvals for goods and consultancy services valued below ₦5 billion and works valued below ₦10 billion, as these will be delegated to Ministerial Tenders Boards, Parastatal Tenders Boards, or Accounting Officers.
- The updated procurement guidelines in Nigeria, enacted by President Tinubu, require international or national competitive bidding for contracts with goods valued at ₦1 billion or more, and works priced at ₦5 billion or above.
- In thesenew regulations, thesenior ministerial boards will be responsible for approving contracts involving goods and consultancy services valued between ₦50 million and less than ₦1 billion, and works priced between ₦50 million and less than ₦2.5 billion.
- As part of President Tinubu's drive to boost efficiency in public procurement, smaller procurements may now choose Requests for Quotations or Shopping (Market Survey) over competitive bidding.
- With the streamlined procurement process under President Tinubu's regulations, the focus of the FEC is expected to shift towards broad policy-and-legislation issues for Nigeria, general news, business, finance, and politics, as fewer routine contract matters will need to be addressed.
