BPP clamps down on contract padding: new rules force central review of all variation requests

By Johnbosco Agbakwuru

ABUJA — THE Bureau of Public Procurement (BPP) has moved to shut down what it called “backdoor cost inflation and scope creep” across federal projects by centralising review and certification of all contract variation requests under a strict new framework that takes effect immediately.

The guidelines, issued under Sections 5(a) and (o) of the Public Procurement Act, 2007, implement the Federal Executive Council’s December 2025 policy shift, replaced the 2013 circular that required Presidential sign-off only for variations above 15 percent or ₦1 billion.

A statement by Zira Zakka Nagga,Head of Press and Pubilc Procurement, said BPP will now vet every variation, fluctuation claim and scope modification before any approving authority may act.

The statement quoted the Director-General of BPP, Dr. Adebowale Adedokun of saying: “No variation will pass the gate without a BPP Certificate of No Objection.

“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.”

The jey elements of the guidelines tighten oversight and raise penalties.

According to the new guidelines, ministries, departments and agencies (MDAs) must submit complete variation dossiers to BPP — including final designs, original and revised BOQ/BEME, technical assessments, photographs and interim certificates — before proceeding to any Approving Authority.

It stated that only genuinely unforeseen site conditions, material design errors, statutory/regulatory changes, macroeconomic shocks or bona fide value engineering that reduces costs are eligible grounds for variation.

Warning against poor planning, BPP stated that variations born of avoidable design flaws, inadequate planning or the addition of new components must be procured as fresh contracts and will be rejected for certification.

It stated that claims for labour, material or exchange rate changes must follow contract conditions, while ontractors found to have engineered delays to profit from fluctuation claims will face denial of claims and possible debarment.

Besides, all procurements must be based on approved final designs; reliance on preliminary or flawed drawings that trigger avoidable variations will attract sanctions.

It said that the relevant approving authority will be determined by the augmentation sum, not the revised total as works variations of ₦10 billion and above would now go to Federal Executive Council, FEC/NJC/NASS Tenders Board; the ministerial and parastatal boards handle lower tiers; and sums below ₦75 million (works) and ₦50 million (goods/services) are approved by Accounting Officers.

Within 30 days of Tenders Board approval MDAs must publish contract details and the justification for increases.

“A Certificate of No Objection from BPP is regulatory clearance to proceed to the Approving Authority — not an automatic payment order,” Dr. Adedokun added.

“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.”

The guidelines echo a wider government push for fiscal discipline under the Renewed Hope Agenda, according to the BPP. “Public funds are finite and every naira must deliver value,” the Director‑General said.

“These rules will be applied rigorously and fairly across all MDAs to stop variations becoming a backdoor for cost inflation.”

The policy applies retroactively to all ongoing projects, regardless of when original contracts were awarded. MDAs have been asked to alert Accounting Officers, Tenders Boards and procurement officers to the new regime and to forward variation requests to [email protected] for clarification if required.

A senior procurement official, on condition of anonymity, welcomed the move but warned of implementation challenges. “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.

Contractors and industry groups now face a narrower window to justify extra costs. “If contractors cannot demonstrate that variations were unforeseeable and consistent with original rates, they will be asked to re-bid or face debarment,” Dr. Adedokun cautioned.

The BPP said it will periodically submit notes to the Federal Executive Council on reviewed and approved variations to ensure continued oversight and public accountability.

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