FG’s New Contract Variation Policy Will Cut Costs, Boost Transparency – TMV

The Tinubu Media Volunteers (TMV) has commended the Federal Government’s new policy on contract variation across Ministries, Departments and Agencies (MDAs), describing it as a major step toward strengthening transparency, accountability and cost management in public procurement.

Under the new policy, contract variations and augmentations will be centralized under the authority of the Bureau of Public Procurement (BPP), which will serve as the clearing house for all adjustments before they are submitted to approving authorities such as the Federal Executive Council (FEC), Ministerial Tenders Boards, the National Assembly and the National Judicial Council.

In a statement signed by its Chairman, Chukwudi Enekwechi, and Secretary, Segun Ogedengbe, the group noted that the new guidelines supersede the 2013 policy, which required presidential approval for contract variations exceeding 15 per cent of the original contract sum of N1 billion.

According to TMV, the revised policy, derived from Section 5(a) and (o) of the Public Procurement Act 2007 and implemented under the supervision of the BPP, stipulates that work variations valued at N10 billion and above must be referred to the Federal Executive Council, National Judicial Council or the National Assembly Tenders Board for approval.

The group explained that the guidelines provide a comprehensive framework for implementing the revised policy on contract variations and the mandatory use of final project designs.

It added that under the new arrangement, the augmentation or variation amount—not the total revised contract cost—will determine the approving authority. Variations ranging from N5 billion to below N10 billion will be handled by Ministerial Tenders Boards, while those between N75 million and below N5 billion will be considered by Parastatal or Judicial Tenders Boards.

TMV further highlighted that no variation or fluctuation claim would be processed by any approving authority without first obtaining a BPP Certificate of No Objection.

The group described the guidelines as timely and necessary for improving contract administration in Nigeria, noting that they would help close loopholes, curb abuses and promote greater transparency in the procurement process.

It also praised the administration of President Bola Ahmed Tinubu for introducing the policy, saying it reflects the government’s commitment to good governance and prudent management of public resources for the benefit of Nigerians.