Public Procurement Act 2007

Public Procurement Act 2007

Quick Answer: The Public Procurement Act (PPA) 2007 is Act No. 14 of 2007. It established two bodies — the National Council on Public Procurement (NCPP) for policy and thresholds, and the Bureau of Public Procurement (BPP) for regulation and oversight — and made open competitive bidding the default method for all federal procurement of goods, works, and consultancy.

The BPP and the NCPP

The PPA 2007 created a two-tier regulatory architecture:

The BPP is the operational regulator. Its powers under §6(1) include enforcing thresholds and issuing Certificates of No Objection for contract award within the prior-review threshold. The NCPP was intended to include civil society representation, though in practice it has often not been fully constituted and the Federal Executive Council has performed some of its intended roles.

Procurement Principles: Open Competitive Bidding

Open competitive bidding is the default method under PPA §§24–25. All procurements of goods and works must be conducted by open competitive bidding except where the Act expressly permits another method. Open bidding comes in two flavours:

• National Competitive Bidding (NCB) — for contracts below the international threshold set by BPP.
• International Competitive Bidding (ICB) — for contracts above that threshold.

The principle is transparency: invitations are advertised (in at least two national newspapers and the procurement journal for consultancy), bids are evaluated on published criteria, and the award goes to the lowest evaluated responsive bidder (or best combined quality-and-cost for consultancy).

Thresholds for Goods, Works, and Consultancy

The NCPP sets, and the BPP publishes and periodically revises, the Service-Wide Prior Review and Monetary Thresholds. These thresholds determine:

1. Which method applies (NCB vs ICB; shopping vs open bidding; direct contracting).
2. Whether prior review by BPP is required (above the prior-review threshold = prior review + No Objection; below = post review only).
3. Who the approving authority is — Parastatal Tenders Board for agencies, Ministerial Tenders Board for ministries (PPA §17), with BPP/FEC above certain limits.

Because the specific naira figures are revised (a revised threshold document was published by BPP, e.g. January 2022), candidates should treat the principle of threshold-based routing as the exam-correct concept and hedge on memorising exact current figures. Indicative figures from the Regulations include minor-value procurements below about ₦1 million handled by the Accounting Officer, and bid security typically not more than 2% of bid price.

Certificate of "No Objection"

The Certificate of No Objection is the central oversight instrument. The Act defines it (§60) as the document evidencing that due process has been followed, allowing the procuring entity to enter into contract or effect payment from the Treasury.

Key provisions:

• §16(1)(b): No procurement shall be formalised until funds are confirmed available and, subject to the threshold, a Certificate of No Objection has been obtained from the BPP.
• §16(2): Where prior review applies, no funds shall be disbursed from the Treasury, the Federation Account, or any procuring-entity account for any procurement above the threshold unless the payment request is accompanied by a Certificate of No Objection.
• §16(4): Any procurement awarded without a required Certificate of No Objection is null and void.
• §16(18): The BPP may refuse to issue a Certificate of No Objection on the ground that the price is excessive.

Due Process Review

Due process is the review chain that procurement must pass before award. For procurements subject to prior review, the procuring entity furnishes the BPP with draft prequalification and bid documents for comments, then after bid evaluation submits a detailed evaluation report with the three lowest evaluated bids, and only after BPP no-objection may the contract be awarded. The BPP also conducts bi-annual post review by independent consultants of at least 20% of contracts not subject to prior review, with results shared with the Auditor-General and the Accountant-General.

If a contract amendment or change order increases the original contract price by more than 15%, the BPP must be informed and may approve or reject.

The National Council on Privatisation Distinction

A common trap: the National Council on Privatisation (NCP) is a different body from the National Council on Public Procurement (NCPP).

The NCP is about who owns public enterprises; the NCPP is about how government buys. Do not confuse the two in the exam.

Exemptions and Special Methods

The Act allows departure from open competitive bidding only on strict conditions:

• Restricted Tendering (§40): Subject to BPP approval; used where the pool of qualified suppliers is limited or time to evaluate many bids is disproportionate to value. A list of eligible suppliers must get BPP no-objection.
• Request for Quotations / Selective Tendering: For small-value goods/works; at least three quotations required; below the BPP threshold, no prior BPP approval needed.
• Direct Contracting / Single Source (§42): Subject to prior BPP approval; only in exceptional circumstances — proprietary goods, standardisation, emergencies. Justification must be documented.
• Emergency Procurement (§43): Direct contracting allowed during disasters or catastrophes; a report must be filed with BPP afterwards for verification and possible issuance of a Certificate of No Objection.
• Two-Stage Tendering (§39): Subject to prior BPP no-objection; used for complex procurements where technical solutions are not fully defined upfront.

Consultancy-Specific Rules

For consultancy (PPA §§44–52), the procuring entity first solicits Expressions of Interest (published in at least two national newspapers); shortlisted consultants then submit technical and financial proposals simultaneously but in separate envelopes, with financial proposals remaining sealed until technical evaluation is complete. Selection methods include Quality and Cost-Based Selection (QCBS), Least Cost Selection (LCS), Quality-Based Selection (QBS), Selection under Fixed Budget, and Consultants' Qualifications. The minimum response time for proposals is typically 30 days.