The Bureau of Public Procurement (BPP) has implemented new guidelines that prohibit Ministries, Departments, and Agencies (MDAs) from processing upward revisions of contract sums without first obtaining a Bureau certificate. This reform aims to close a persistent channel for cost inflation and corruption in Nigeria’s public procurement system.

These guidelines, issued under Sections 5(a) and (o) of the Public Procurement Act, 2007, give effect to a Federal Executive Council-approved policy. They replace an earlier 2013 framework that only required presidential approval for variations exceeding 15 per cent of the initial contract sum or N1bn.

Under the new framework, every request for a variation order, fluctuation claim, or scope modification, regardless of its size, must be submitted to the BPP for review and certification before proceeding to the relevant approving authority. A BPP Certificate of No Objection, valid for six months, is now a mandatory precondition for any further action.

Variations processed without this certificate will result in sanctions under the Public Procurement Act, 2007. These sanctions can include the suspension of responsible officers and the debarment of contractors.

Dr. Adebowale Adedokun, the Bureau’s Director-General, stated that variations must not become a backdoor for cost inflation and scope creep. He emphasized that the guidelines ensure every adjustment to a public contract is necessary, justified, and delivers value to Nigerians, and that the BPP will apply these rules rigorously and fairly across all MDAs.

The guidelines clearly distinguish between permissible and impermissible grounds for variation. Acceptable grounds include unforeseen site conditions, material errors in design or bills of quantities, statutory changes after contract execution, significant price escalation due to macroeconomic shocks or force majeure, and value engineering improvements that reduce cost without altering scope.

Variations arising from inadequate planning, avoidable design flaws, or the addition of new components not originally contemplated will be rejected. Such additions must be procured as separate contracts, preventing the use of variations to award new projects under existing ones.

For fluctuation claims—adjustments for changes in the cost of labour, materials, and exchange rates—new deterrents are in place against project delays. Contractors found to have intentionally slowed down execution to generate larger fluctuation claims will be denied those claims and may face debarment if the claims are bogus or overstated.

The revised approving authority thresholds are now tied to the augmentation sum rather than the total revised contract cost. Works variations of N10bn and above require Federal Executive Council approval. Variations between N5bn and N10bn go to the Ministerial Tenders Board; those between N75m and N5bn go to the Parastatal Tenders Board; and anything below N75m for works, or N50m for goods and services, can be approved at the Accounting Officer level.

To address upstream causes of variations, the guidelines mandate the use of approved final designs for all procurements from the outset. The use of preliminary or flawed designs that generate unnecessary variations will attract regulatory sanctions.

Regarding transparency, all MDAs are required to publish details of every approved variation, including the contractor’s name, original contract sum, augmentation amount, revised contract sum, and grounds for the increase, on their websites and the BPP portal within 30 days of Tenders Board approval. The BPP will also periodically submit council notes to the FEC on reviewed and approved variations.

These guidelines take effect immediately and apply to all ongoing projects, irrespective of when the original contract was awarded.