FG Cracks Down on Unapproved Contract Variations in MDAs

The Federal Government, through the Bureau of Public Procurement (BPP), has barred Ministries, Departments, and Agencies (MDAs) from processing upward revisions of contract sums without obtaining prior approval and certification from the Bureau.

The directive was contained in a statement issued on Sunday and signed by the Bureau’s Head of Press and Public Relations, Zira Nagga.

According to the statement, the new policy introduces sweeping reforms that centralise the review of all contract variations and scope modifications under the supervision of the BPP, in a bid to curb cost inflation and corruption in public procurement.

The guidelines, issued under Sections 5(a) and (o) of the Public Procurement Act 2007, implement a Federal Executive Council-approved policy communicated through the Secretary to the Government of the Federation in December 2025.

Titled “Contract Variations: BPP Releases Guidelines,” the new framework replaces the 2013 rule which required Presidential approval only for variations above 15 per cent of contract value or N1 billion.

Under the revised policy, all requests for variation orders, fluctuation claims, or scope modifications—regardless of value—must now first be submitted to the BPP for review and certification before any further approval is granted.

The Bureau stated that a Certificate of No Objection, valid for six months, will now be a mandatory requirement before any variation can proceed. It warned that non-compliance will attract sanctions under the Public Procurement Act, including suspension of responsible officers and possible debarment of contractors.

BPP Director-General, Adebowale Adedokun, said the reforms are intended to block loopholes that allow cost inflation and misuse of public funds.

“Variations must not become a backdoor for cost inflation and scope creep,” he said, adding that all adjustments must be “necessary, justified, and deliver value to Nigerians.”

The guidelines further distinguish between permissible and impermissible grounds for contract variation. Acceptable reasons include unforeseen site conditions, design errors, statutory changes after contract award, major economic shocks, force majeure events, and value engineering improvements that reduce cost without altering project scope.