FG’s New Contract Variation Policy Will Save Costs, Boost Transparency — Group By Raymond Enoch
The Tinubu Media Volunteers (TMV) has commended the Federal Government’s newly introduced policy on contract variation and augmentation across Ministries, Departments and Agencies (MDAs), describing it as a major step towards cost savings, transparency and accountability in public procurement.
In a statement signed by its Chairman, Chukwudi Enekwechi, and Secretary, Segun Ogedengbe, the group said the policy, which centralises contract variation approvals under the Bureau of Public Procurement (BPP), would strengthen oversight and reduce abuses in contract administration.
According to TMV, the revised guidelines empower the BPP to serve as a clearing house for all contract variations and augmentations before they are forwarded to approving authorities such as the Federal Executive Council, Ministerial Tenders Boards, the National Assembly and the National Judicial Council.
The group noted that the new framework, derived from Section 5(a) and (o) of the Public Procurement Act 2007, replaces the 2013 guidelines which required presidential approval for variations exceeding 15 per cent of an initial contract value of ₦1 billion.
Under the revised policy, work variations valued at ₦10 billion and above will require approval from higher authorities, including the Federal Executive Council, while variations between ₦5 billion and below ₦10 billion will be handled by Ministerial Tenders Boards. Variations ranging from ₦75 million to below ₦5 billion will be considered by Parastatal and Judicial Tenders Boards.
TMV also highlighted a key provision of the policy which stipulates that approval thresholds will now be determined by the augmentation or variation amount rather than the total revised contract value.
The group further welcomed the requirement that no variation or fluctuation claim can proceed to any approving authority without a BPP Certificate of No Objection, describing the measure as critical to ensuring due process and fiscal discipline.
It added that the comprehensive guidelines, which also mandate the use of final project designs, would help eliminate loopholes that have historically contributed to project cost overruns and inefficiencies.
TMV praised the administration of President Bola Ahmed Tinubu for implementing the policy, saying it reflects a commitment to good governance, prudent spending and improved public sector accountability.
The group expressed confidence that the new framework would restore greater transparency and sanity to Nigeria’s contract management system while ensuring better value for public funds.
