President Tinubu approves reforms to public procurement thresholds for MDAs

By Kunle Sanni

President Bola Tinubu has approved a sweeping overhaul of public procurement thresholds for all Ministries, Departments, and Agencies (MDAs) of the Federal Government, including key arms such as the Defence, Legislature, and Judiciary.

According to a statement issued by Kamorudeen Olawale Yusuf, Personal Assistant on Special Duties to the President, the policy is designed to enhance transparency, improve efficiency in the public procurement process, and promote the timely delivery of government projects.

Under the new policy, Federal Executive Council (FEC) approval will now be required only for the procurement of goods and consultancy services valued at ₦5 billion and above, and for works projects valued at ₦10 billion and above. This marks a significant shift from the previous thresholds and is aimed at streamlining public procurement processes.

The reform, based on formal recommendations from the Bureau of Public Procurement (BPP) and in line with the provisions of the Finance Act 2020, seeks to decentralize decision-making, reduce bureaucratic delays, and allow the FEC to focus more on strategic national policy issues rather than routine contract approvals.

A comprehensive implementation framework is expected to be released by the BPP in the coming days to guide MDAs in aligning with the updated thresholds.