By Cross Udo, Abuja
The Federal Government has introduced stricter procurement controls to end contract padding, inflated project costs, and the abuse of variation claims across federal projects. The Bureau of Public Procurement (BPP) will now centrally vet and certify all requests for contract variations, effective immediately.
Under the new framework issued pursuant to Sections 5(a) and (o) of the Public Procurement Act, 2007, no ministry, department or agency (MDA) will be allowed to approve any variation, fluctuation claim or scope adjustment without first securing a Certificate of No Objection from the BPP.
The directive implements a Federal Executive Council (FEC) policy adopted in December 2025 and effectively replaces the 2013 guideline, which required presidential approval only for variations exceeding 15 per cent or ₦1 billion.
In a statement issued by the Head of Press and Public Relations at the BPP, Zira Zakka Nagga, the agency’s Director-General, Dr Adebowale Adedokun, declared that the era of unchecked project inflation was over.
“No variation will pass the gate without a BPP Certificate of No Objection,” Adedokun said.
“We will not allow deliberate delays, weak planning or speculative claims to inflate the cost of projects paid for by Nigerians. Every change must be necessary, justified and consistent with the original contract rates,” he added.
The new rules compel MDAs to submit comprehensive documentation for every variation request, including final project designs, original and revised Bills of Quantities, technical assessments, photographs, and interim valuation certificates, before seeking approval from the relevant authorities.
According to the guidelines, only unforeseen site conditions, major design errors, regulatory changes, macroeconomic shocks or genuine value-engineering measures that reduce costs will qualify for consideration.
The BPP warned that variations arising from poor planning, avoidable design flaws or the addition of entirely new components would no longer be tolerated and must instead undergo fresh procurement processes.
The agency also issued a stern warning to contractors accused of manipulating project timelines to profit from inflation and exchange rate fluctuations.
“Contractors found to have engineered delays to profit from fluctuation claims will face denial of claims and possible debarment,” the statement said.
The framework further stipulates that all procurements must be based on approved final designs, stressing that reliance on preliminary drawings or defective project plans that trigger avoidable variations would attract sanctions against responsible officials.
Under the revised approval structure, variation requests involving ₦10 billion and above will now require clearance from the Federal Executive Council, the National Judicial Council, or the National Assembly Tenders Board, while ministerial and parastatal tender boards will handle lower thresholds.
The BPP also directed MDAs to publicly disclose contract details and justifications for cost increases within 30 days of approval in a move designed to improve transparency and accountability.
“A Certificate of No Objection from BPP is regulatory clearance to proceed to the Approving Authority — not an automatic payment order,” Adedokun clarified.
“Certificates will lapse after six months, and any variation processed without BPP certification will attract sanctions under the PPA 2007, including suspension of officers and debarment of contractors,” he warned.
The policy, which takes effect retroactively on all ongoing federal projects, irrespective of award dates, is part of the government’s broader fiscal discipline drive under the Renewed Hope Agenda.
While some procurement experts welcomed the reform, concerns were raised over the BPP’s capacity to handle the increased workload without causing delays in project execution.
A senior procurement official, who spoke anonymously, said central review was necessary to curb abuse but cautioned that inadequate technical manpower and slow approvals could create bottlenecks.
“Central review is the right step to curb abuse, but BPP must match its new mandate with capacity — technical reviewers, fast turnaround and robust IT publishing — or approvals will bottleneck projects,” the official said.
