FG Tightens Contract Rules, Bars Variations Without BPP Approval

The Bureau of Public Procurement (BPP) has directed all Ministries, Departments and Agencies (MDAs) to stop processing upward adjustments of contract sums without first obtaining a certificate from the Bureau.

The agency also introduced new guidelines that centralise the review of all contract variations and scope changes under its regulatory control, saying the measure is aimed at curbing cost inflation and reducing corruption in public procurement.

In a statement issued on Sunday by its Head of Press and Public Relations, Zira Nagga, the Bureau said the reforms were designed to close long-standing loopholes that have been exploited in the procurement system.

The guidelines, issued under Sections 5(a) and (o) of the Public Procurement Act, 2007, also implement a Federal Executive Council-approved policy communicated through the Secretary to the government over of the Federation in December 2025.

The new framework replaces the 2013 rules, which only required presidential approval for variations above 15 per cent of the contract sum or N1bn.

Under the revised rules, all requests for variation orders, fluctuation claims, and scope modifications must be submitted to the BPP for review and certification before any approval is granted by the relevant authorities, regardless of value.

The Bureau stated that a Certificate of No Objection, valid for six months, is now mandatory, warning that any variation processed without it will attract sanctions under the Public Procurement Act, including suspension of responsible officers and debarment of contractors.

The Director-General of the BPP, Dr Adebowale Adedokun, was quoted as saying that variations must not be used as a channel for cost inflation or expansion of project scope beyond approved limits, adding that the Bureau would enforce the rules strictly across all MDAs.

The guidelines specify acceptable grounds for contract variations, including unforeseen site conditions, design or bill of quantities errors, statutory changes after contract award, major economic shocks or force majeure, and value engineering that reduces cost without altering scope.

However, variations arising from poor planning, avoidable design flaws, or the addition of new project components not included in the original scope will no longer be approved and must instead be treated as separate contracts.

On fluctuation claims, the Bureau introduced stricter measures to prevent abuse, stating that contractors who deliberately delay project execution to inflate claims may be denied payment and could be debarred if found to have acted fraudulently.

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Approval thresholds have also been revised and are now based on the augmentation amount.

Variations of N10bn and above require Federal Executive Council approval, those between N5bn and N10bn go to the Ministerial Tenders Board, while N75m to N5bn falls under the Parastatal Tenders Board.

Amounts below N75m for works and N50m for goods and services may be approved by the Accounting Officer.

The same structure applies to procurement of goods and services.

All MDAs are now required to use approved final designs before project commencement, with the Bureau warning that reliance on preliminary or defective designs that generate avoidable variations will attract sanctions.

The BPP also directed MDAs to publish details of all approved variations, including contractor names, original contract sums, augmentation amounts, revised sums, and justification, on their websites and the BPP portal within 30 days of approval.

It added that it would submit periodic reports to the Federal Executive Council on all reviewed and approved variations across government.

The guidelines take immediate effect and apply to all ongoing projects, regardless of when they were awarded.

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