Abuja: The Bureau of Public Procurement (BPP) has released detailed guidelines for implementing the Federal Government’s updated policy on contract variations and the mandatory use of final designs for public projects. This development aims to ensure transparency, accountability, and value for money in public procurement processes.
According to News Agency of Nigeria, the guidelines, which are based on Sections 5(a) and (o) of the Public Procurement Act (PPA), 2007, follow the approval of the revised policy by the Federal Executive Council (FEC). The policy was communicated through a circular from the Office of the Secretary to the Government of the Federation (SGF) with reference number 59780/S.2/B/568 dated December 2025.
The new framework centralizes the review and certification of all requests for revision of contract sums and modification of contract scope under the BPP. The guidelines replace the 2013 circular, which required Presidential approval for Revised Estimated Total Cost (RETC) and variations exceeding 15 percent of the initial contract sum or N1 billion.
Under the revised framework, Service-Wide Prior Review and Monetary Thresholds will determine the appropriate approving authority for variations and scope modifications. Ministries, Departments, and Agencies (MDAs) must submit requests for variation orders, fluctuation claims, and scope modifications directly to the BPP for review and certification. No variation or fluctuation claim can proceed to the relevant approving authority without a BPP Certificate of No Objection.
The guidelines are designed to facilitate transparent and legally-compliant procedures for processing contract variations, while protecting public interest. Variations will only be approved if they are necessary, unforeseeable, and do not fundamentally alter the original contract scope. Unit rates for varied works must match the original contract rates.
Permissible grounds for variation include unforeseen site conditions, material errors in design, statutory or regulatory changes post-contract execution, significant price escalation due to macroeconomic shocks, and value engineering improvements that reduce cost without altering scope. Variations due to inadequate planning or avoidable design flaws will not be accepted and must be procured as separate contracts.
The guidelines also clarify the distinction between variation and fluctuation claims, with fluctuation claims pertaining to changes in the cost of labor, materials, and exchange rates. Contractors found to delay projects deliberately to generate fluctuation claims may face debarment if claims are deemed overstated.
Furthermore, all procurements must be based on approved final designs to minimize avoidable variations. The use of preliminary or flawed designs leading to unnecessary variations will attract regulatory sanctions. Approving thresholds for variations are specified, with works variations of N10 billion and above requiring approval by the FEC or other relevant bodies, while smaller variations will be handled by different tenders boards.
A BPP Certificate of No Objection constitutes regulatory clearance to proceed to the approving authority but does not equate to payment approval. Certificates issued under the guidelines remain valid for six months, and any variations processed without BPP certification will face sanctions under the PPA 2007.
MDAs are directed to publish details of approved variations on their websites and the BPP portal within 30 days of tenders board approval. The published information must include contractor names, original contract sums, augmentation sums, revised contract sums, and grounds for the increase.
The Director-General of BPP, Dr. Adebowale Adedokun, emphasized that the guidelines reinforce the federal government’s commitment to fiscal discipline, transparency, and value for money under the Renewed Hope Agenda. The policy takes immediate effect and applies to all ongoing projects, with MDAs instructed to ensure strict compliance.
For further clarifications, MDAs and stakeholders can contact the bureau via email at [email protected].