The Federal Government has approved a revision of the existing Prior Review and Monetary Thresholds applicable across Ministries, Departments, and Agencies (MDAs) for the procurement of goods, works, and services.
This move is part of a broader effort to achieve more sustainable and realistic procurement outcomes in light of current economic realities. It also aims to improve budget implementation and ease of doing business in Nigeria.
The approval was conveyed in a circular dated May 27, 2025, and signed by the Secretary to the Government of the Federation (SGF), Senator George Akume. The circular has been addressed to relevant officials and institutions.
According to the SGF, the newly approved procurement thresholds override all existing thresholds, except for special provisions relating to the Nigerian National Petroleum Company Limited (NNPC Ltd.). These NNPC thresholds remain denominated in U.S. Dollars and are adjusted to reflect current Naira values.
The revised thresholds apply across all three arms of government—Executive, Legislature, and Judiciary—along with their respective Tenders Boards.
Akume stated that the updated thresholds aim to align procurement processes with economic conditions, enhance budget efficiency, and support Nigeria’s ease of doing business agenda.
To enforce compliance, the Bureau of Public Procurement (BPP) has been directed to ensure Open Competitive Bidding is the default procurement method. Other methods—including Restricted Tendering, Direct Procurement, Direct Labour, and Emergency Procurement—will be limited to cases that meet statutory criteria outlined in the Public Procurement Act (PPA), 2007. The BPP is expected to release further guidelines on the appropriate application of these methods.
The BPP will also focus on prior and post-reviews, audits, surveillance, and monitoring to curb abuses and impose sanctions in line with the PPA 2007. Biannual audit reports are to be submitted to the National Assembly as required by Section 5(p) of the Act.
Additionally, the BPP will now conduct quality assurance reviews of all procurements approved by Ministerial Tenders Boards (MTBs) that do not require a Certificate of No Objection. Procurements under ₦1 billion for goods and services, and under ₦5 billion for works, must be submitted to the BPP for review prior to contract awards. These submissions must include evaluation reports, MTB meeting minutes, and draft contract agreements.
Akume emphasized the need for MDAs and government-owned entities to strictly adhere to procurement timelines and to submit quarterly procurement progress reports to the BPP. This will allow the Bureau to track performance and ensure timely execution of procurement activities.
Procuring entities must notify successful bidders of award decisions promptly and provide debriefings to unsuccessful bidders. In compliance with the PPA 2007, details of all contract awards must be published monthly on the websites of both the procuring entities and the BPP.
MDAs are also required to adhere to the government’s “Nigeria First” policy for procurements that fall within the National Competitive Bidding threshold. Preference must be given to Nigerian-made goods and local service providers—provided they meet international standards and are certified by the relevant regulatory agencies.
To improve accountability, the government has warned that non-performing or dishonest contractors will be barred from participating in future public procurements. The BPP is authorized to debar any contractor or supplier that fails to deliver satisfactorily, abandons a project, or engages in corrupt, fraudulent, or obstructive practices.
Finally, accounting officers will oversee procurement processes directly, while political heads of ministries are responsible for confirming Tenders Board approvals. The Federal Government stressed the importance of completing 2024 procurement activities promptly and starting 2025 activities early, in line with previous circulars and the new thresholds.
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