The federal government, through the Bureau of Public Procurement (BPP), has introduced stricter regulations preventing Ministries, Departments and Agencies (MDAs) from approving upward revisions of contract sums without prior clearance
Through the Bureau of Public Procurement (BPP), the government has barred MDAs from processing upward revisions of contract sums without first obtaining formal approval and a “Certificate of No Objection” from the Bureau.
According to new guidelines issued under the Public Procurement Act 2007, all contract variations, scope changes, fluctuation claims, and cost adjustments must now be submitted to the BPP for review before any other approval can be granted.
The BPP said the reform is designed to close loopholes that have historically enabled overpricing, contract manipulation, and abuse of variation orders in public projects.
Under the new framework, no variation will proceed without the BPP certificate, which will be valid for six months. Any MDA or contractor that bypasses the requirement risks sanctions, including suspension of responsible officials and possible blacklisting.
The guidelines also redefine acceptable grounds for contract variations, limiting them to issues such as unforeseen site conditions, statutory changes, design errors, force majeure, or approved value engineering that reduces cost without altering project scope.
However, variations arising from poor planning, incomplete designs, or attempts to add new project components will no longer be allowed under existing contracts and must be procured separately.
The policy further introduces stricter approval thresholds tied to the value of the variation. Projects involving major cost increases of N10 billion and above will require Federal Executive Council approval, while lower thresholds will be handled by ministerial and parastatal tender boards or accounting officers, depending on the size of the adjustment.
To improve transparency, MDAs are now required to publish details of all approved variations—including contractors, original contract sums, and reasons for changes—within 30 days of approval.
The BPP said the reforms take immediate effect and apply to all ongoing and future federal government projects.
