The Federal Government has introduced stricter procurement measures aimed at curbing contract inflation, corruption, and abuse of variation orders in public projects across Ministries, Departments, and Agencies (MDAs).
Under the new directive issued by the Bureau of Public Procurement (BPP), no contract variation, fluctuation claim, or modification of project scope will be processed without first obtaining clearance and certification from the bureau.
The BPP explained that the reform was designed to close loopholes that have long allowed inflated contract costs and irregular project adjustments within Nigeria’s public procurement system. The new guidelines were issued pursuant to Sections 5(a) and (o) of the Public Procurement Act, 2007, following approval by the Federal Executive Council (FEC).
According to the agency, a “Certificate of No Objection” from the BPP will now become mandatory before any upward review of contract sums can proceed to approving authorities. The certificate will remain valid for six months.
The bureau also warned that any contract variation processed without its approval would attract sanctions under the Public Procurement Act, including suspension of responsible officials and possible debarment of contractors involved.
Speaking on the development, BPP Director-General Dr. Adebowale Adedokun said contract variations must not become “a backdoor for cost inflation and scope creep.” He stressed that all adjustments to public contracts must be properly justified and provide value for Nigerians.
Under the revised framework, only specific situations will qualify for contract variations. These include unforeseen site conditions, statutory changes after contract execution, major macroeconomic shocks, force majeure events, and genuine design errors discovered during implementation.
However, the BPP clarified that variations arising from poor planning, avoidable design flaws, or the addition of entirely new project components would no longer be accepted. Such additions, the bureau said, must be treated as fresh contracts instead of being attached to existing projects.
The government also introduced stricter rules for fluctuation claims linked to changes in labour, materials, or exchange rates. Contractors found deliberately delaying projects to generate larger claims risk losing payment approvals and facing sanctions.
To improve transparency, all MDAs have now been directed to publish details of approved contract variations including original sums, augmentation amounts, revised costs, and reasons for adjustments on their official websites and the BPP portal within 30 days of approval.
The guidelines take immediate effect and apply to all ongoing federal government projects regardless of when the original contracts were awarded.
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