The Bureau of Public Procurement (BPP), pursuant to Sections 5(a) and (o) of the Public Procurement Act, 2007, has issued comprehensive Guidelines on the Implementation of the Revised Policy of the Federal Government for Variations of Contract Sums and Mandatory Use of Final Designs.
The new policy, approved by the Federal Executive Council (FEC) and conveyed vide SGF Circular Ref. No. 59780/S.2/B/568 dated December 2025, centralises the review and certification of all requests for revision of contract sums and modification of contract scope under the BPP.
The latest guidelines supersede that of 2013, conveyed vide a circular which required Presidential approval for RETC/variations above 15% of the initial contract sum or ₦1 billion.
Under the revised framework, the applicable Service-Wide Prior Review and Monetary Thresholds will now determine the appropriate Approving Authority for variations and scope modifications.
Key Provisions of the Guidelines are:
1. Centralised Review and Certification by BPP:
All 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 shall proceed to the relevant Approving Authority without a BPP Certificate of No Objection.
1. Objectives and Guiding Principles:
The guidelines aim to establish transparent, legally-compliant procedures for processing variations; align the approval framework with the revised procurement thresholds approved in May 2025; protect public interest by ensuring variations are genuine and justified; and promote accountability, value for money, and timely project delivery.
Variations will only be approved where they are genuinely necessary, could not have been foreseen with reasonable diligence, and do not fundamentally alter the original scope of the contract. Unit rates for varied works must be consistent with the original contract rates.
1. Permissible and Non-Permissible Grounds for Variation:
Permissible grounds include unforeseen site conditions, material errors in design and BOQ/BEME, statutory or regulatory changes after contract execution, significant price escalation due to macroeconomic shocks or force majeure, and value engineering improvements that reduce cost without altering scope.
Variations arising from inadequate planning, avoidable design flaws, or addition of new components not contemplated in the original scope will not be accepted. Such additions must be procured as separate contracts.
1. Distinction Between Variation and Fluctuation:
Fluctuation claims relate to changes in the cost of labour, materials, and exchange rates and must be handled strictly in accordance with the Conditions of Contract. Contractors who deliberately delay projects to generate fluctuation claims will be denied such claims and may be debarred if claims are found to be bogus or overstated.
1. Mandatory Use of Final Designs:
To reduce avoidable variations, all procurements must be based on approved final designs. Use of preliminary or flawed designs that lead to unnecessary variations will attract regulatory sanctions.
1. Submission Requirements:
Requests to the BPP must include a forwarding letter signed by the Accounting Officer, the original contract agreement and BOQ/BEME, revised BOQ/BEME and final designs, backup calculation sheets, status and progress reports, progress photographs, technical assessment of contractor capacity, interim valuation certificates, and supporting invoices and delivery notes for fluctuation claims.
1. Revised Approving Authority Thresholds:
The augmentation/variation sum, not the total revised cost, will determine the Approving Authority.
• Works variations of ₦10 billion and above go to FEC/NJC/NASS Tenders Board.
• Works variations of ₦5 billion to below ₦10 billion go to Ministerial Tenders Board/NASS.
• Works variations of ₦75 million to below ₦5 billion go to Parastatal/Judicial Tenders Board.
Similar thresholds apply for goods and services. Variations below ₦75 million for works and ₦50 million for goods/services are approved at the Accounting Officer level.
1. Validity and Compliance:
A BPP Certificate of No Objection constitutes regulatory clearance to proceed to the Approving Authority but does not constitute approval for payment. Certificates are valid for six months. Variations, fluctuation claims, and scope additions processed without BPP certification will attract sanctions under the PPA 2007, including suspension of officers and debarment of contractors.
1. Transparency and Reporting:
Within 30 days of Tenders Board approval, MDAs must publish on their websites and the BPP portal the contractor’s name, original contract sum, augmentation sum, revised contract sum, and grounds for the increase. The BPP will periodically submit Council Notes to FEC on reviewed and approved variations.
The Director-General/CEO of the BPP, Dr. Adebowale A. Adedokun, FCIPS, stated that the guidelines reinforce the Federal Government’s commitment to fiscal discipline, transparency, and value for money under the Renewed Hope Agenda.
Variations must not become a backdoor for cost inflation and scope creep. These guidelines ensure that every adjustment to a public contract is necessary, justified, and delivers value to Nigerians. The BPP will apply these rules rigorously and fairly across all MDAs,” Dr. Adedokun said.
The policy takes effect immediately and applies to all ongoing projects irrespective of when the original contract was awarded. MDAs are required to bring the guidelines to the attention of Accounting Officers, Tenders Boards, and Procurement Officers for strict compliance.
For further clarifications, MDAs and stakeholders may contact the Bureau of Public Procurement via email at info@bpp.gov.ng.
e-Signed:
Zira Zakka Nagga,
Head of Press and Pubilc Procurement (BPP)
May, 15, 2026
