In a bid to enhance efficiency in governance, the Federal Executive Council (FEC) is considering a major shift in its approach to contract approvals.
During Wednesday’s Federal Executive Council (FEC) meeting, President Bola Tinubu led discussions on raising approval thresholds for ministerial tenders boards and top officials.
This initiative seeks to reduce contract-related memos, allowing FEC to focus more on policies.
Government Aims To Cut Contract Approval Bottlenecks
After the meeting, Minister of Information and National Orientation, Mohammed Idris, explained the rationale behind the move.
He noted that ministers have already approved 141 memos in just four meetings this year, with most related to procurement.
To streamline the ₦54.99 trillion budget implementation, the government now plans to increase approval limits at ministerial levels.
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FEC Reviewing Current Approval Limits
Previously, in 2022, the Bureau of Public Procurement (BPP) set the following limits:
- FEC approved contracts exceeding ₦1.5 billion for works and ₦300 million for goods/services.
- Ministerial tenders boards handled contracts between ₦30 million and ₦1.5 billion for works and ₦20 million to ₦300 million for goods/services.
- Parastatal tenders boards, Permanent Secretaries, and CEOs managed lower-value contracts.
Ministers And Agencies To Get More Autonomy
Now, the government intends to expand the approval authority of ministers and agencies.
By doing so, FEC can eliminate bureaucratic delays and free up time for policy discussions.
Next Steps: Final Review And Implementation
Leading the debate, President Tinubu directed the BPP Director-General and ministers to refine the proposal.
As a next step, they will submit their final recommendations to FEC for approval.
According to Idris, “Once this review is complete, FEC will have more time to focus on crucial policy matters.”
