Tinubu Eases Contract Approvals Under ₦5 Billion in Major Procurement Reform

In a move aimed at slashing red tape and accelerating public sector efficiency, President Bola Ahmed Tinubu has approved a sweeping reform that exempts federal contracts and procurement deals below ₦5 billion from the long-standing requirement of Federal Executive Council (FEC) approval.

The announcement, made public on Thursday through Zira Nagga, spokesperson for the Bureau of Public Procurement (BPP), marks a significant departure from the country’s historically rigid procurement process.

Prior to this development, nearly all major government contracts required clearance at the federal cabinet level, often causing months-long delays. But with Nigeria facing mounting economic pressures and a sluggish implementation pace for government projects, the Tinubu administration has chosen to decentralize procurement authority—handing more autonomy to ministries, departments, and agencies (MDAs).

Under the new framework, MDAs can now process projects valued below ₦5 billion without FEC intervention. Only contracts exceeding that threshold—₦5 billion for goods and consultancy services, and ₦10 billion for works—will require escalation to the council.

The BPP stressed that the reform is not just about cost thresholds, but about enforcing transparency and competitiveness at all levels of public contracting. Hence, projects above ₦1 billion for goods and ₦5 billion for works will now mandate national or international competitive bidding.

“Under the new structure, only contracts valued at ₦5bn and above for goods and consultancy services and ₦10bn 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,”

the BPP stated.

Smaller projects are also subject to streamlined processes. For instance, Requests for Quotations may now be used for goods and non-consultant services under ₦30 million, and for construction works below ₦50 million. Prequalification will apply only to projects valued at ₦500 million and above for goods, and ₦1 billion and above for works.

But the reforms come with a stern warning: public officials who attempt to circumvent or obstruct the new procurement standards will face direct consequences. The BPP has signaled its intent to recommend non-compliant officers for sanctions by the president himself.

“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.”

This latest shift aligns with President Tinubu’s broader economic agenda, including the recently introduced Nigerian First Policy, which discourages importation and encourages the use of locally-produced goods and services.

Observers say this policy could significantly cut project delays, reduce bottlenecks, and empower agencies to act faster, though it also raises concerns about how well individual MDAs can uphold procurement integrity without central oversight.