Public Procurement Contract (Nigeria)
PUBLIC PROCUREMENT CONTRACT
Public Procurement Act 2007 | BPP Standard Conditions of Contract
BPP Certificate of No Objection No.: [CNO Number]
THIS CONTRACT is made this [Contract Date]
BETWEEN:
(1) [Procuring Entity] of [Procuring Entity Address] ("the Procuring Entity"); AND
(2) [Contractor Name] of [Contractor Address], CAC RC No. [RC Number] ("the Contractor").
1. CONTRACT SCOPE
1.1 Contract Title: [Contract Title]
1.2 Contract Type: [Contract Type]
1.3 The Contractor shall execute the works / supply the goods / deliver the services as described in the Technical Specifications, Bill of Quantities, and Drawings (if applicable) attached hereto as Schedules, forming part of this Contract.
2. CONTRACT SUM AND PAYMENT
2.1 The Contract Sum is [Contract Sum] (Nigerian Naira), inclusive of all applicable taxes, duties, and levies.
2.2 Advance Payment: [Advance Payment Percent] of the Contract Sum shall be paid as an advance, against an unconditional advance payment guarantee from a CBN-licensed commercial bank.
2.3 Payment Cycle: Payments shall be made [Payment Cycle]. The Procuring Entity shall process payment within 28 days of receipt of a valid invoice and supporting documents.
3. COMPLETION AND LIQUIDATED DAMAGES
3.1 The Contractor shall complete the works / deliver the goods / provide the services by [Completion Date].
3.2 For each day of delay beyond the Completion Date, the Contractor shall pay liquidated damages at the rate of [Liquidated Damages]. Liquidated damages shall be deducted from payments due to the Contractor or called from the performance bond.
4. PERFORMANCE BOND
4.1 The Contractor shall, within 14 days of signing this Contract, provide an unconditional performance bond from a CBN-licensed commercial bank in the amount of [Performance Bond Percent] of the Contract Sum.
5. DISPUTE RESOLUTION
5.1 Disputes shall be resolved in the following order: (a) Engineer's / Project Manager's Decision; (b) Dispute Adjudication Board (DAB); (c) Arbitration under the Arbitration and Conciliation Act (Cap A18, LFN 2004) before the Lagos Court of Arbitration (LCA) or the Regional Centre for International Commercial Arbitration (RCICA).
5.2 This Contract is governed by the laws of the Federal Republic of Nigeria.
Procuring Entity (Authorised Signatory)
________________
Signature
Contractor (Authorised Signatory)
________________
Signature
What Is a Public Procurement Contract (Nigeria)?
A Public Procurement Contract in Nigeria sets out the rights, duties and consideration binding the parties to it.
The Public Procurement Act 2007 established the Bureau of Public Procurement (BPP) as the regulatory body for federal government procurement, replacing the former tender boards system. The BPP issues Standard Conditions of Contract aligned with internationally recognised procurement standards, including the FIDIC (Fédération Internationale des Ingénieurs-Conseils) Conditions of Contract adapted for Nigerian use for works contracts, and the UNCITRAL Model Law on Public Procurement principles for goods and services. The BPP Procurement Procedures Manual provides detailed guidance on contract formation, administration, and close-out.
At the state level, the Lagos State Public Procurement Agency (LSPPA) administers procurement under the Lagos State Public Procurement Law 2011, while Rivers State, Ogun State, Anambra State, and approximately 26 other states have enacted public procurement legislation modelled on the federal Act. State procurement contracts follow the relevant state's standard conditions.
Every public procurement contract in Nigeria above the threshold amounts established by the BPP under Section 16 of the Public Procurement Act 2007 must receive a BPP Certificate of No Objection (CNO) before the contract is signed. The threshold for CNO requirement is currently set by BPP at NGN 100 million for goods and services and NGN 2.5 billion for works at the federal level (subject to periodic revision). Contracts executed without the required CNO are null and void under Section 16(11) of the Act, and officers who authorise such contracts may face criminal prosecution.
The Federal High Court has exclusive original jurisdiction over civil actions arising from federal procurement contracts under Section 251(1)(r) of the Constitution of the Federal Republic of Nigeria 1999 (as amended). Disputes involving state government contracts are within the jurisdiction of the relevant State High Court.
The legal framework governing the Public Procurement Contract (Nigeria) in Nigeria draws on several key statutes and regulatory bodies. Under Nigerian law, the Companies and Allied Matters Act 2020 (CAMA) regulates corporate entities through the Corporate Affairs Commission (CAC). The Labour Act (Cap L1 LFN 2004) and the National Industrial Court of Nigeria (NICN) govern employment disputes. The Nigeria Data Protection Regulation (NDPR) 2019 and the Nigeria Data Protection Commission (NDPC) protect personal data. The Federal Inland Revenue Service (FIRS) administers tax obligations under the Companies Income Tax Act. The Federal High Court and state High Courts have jurisdiction over civil matters. Parties executing a Public Procurement Contract (Nigeria) in Nigeria should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Companies and Allied Matters Act (CAMA) 2020 sets the foundational requirements.
When Do You Need a Public Procurement Contract (Nigeria)?
A Public Procurement Contract in Nigeria is required whenever a government procuring entity has completed a competitive tender process under the Public Procurement Act 2007 and is ready to formalise the award to the successful bidder.
A Public Procurement Contract is required for the supply of goods — equipment, vehicles, computers, medical supplies, or consumables — to federal or state government agencies above the open competitive bidding threshold, following National Competitive Bidding (NCB) or International Competitive Bidding (ICB) under BPP Standard Bidding Documents for Goods.
A Public Procurement Contract is needed for construction works — roads, bridges, buildings, water treatment plants, or power infrastructure — contracted by federal MDAs, the Federal Ministry of Works and Housing, the Federal Ministry of Power, or state government infrastructure bodies, using the BPP Standard Conditions of Contract for Construction Works.
A Public Procurement Contract is required for the engagement of consulting firms and individual consultants — engineers, architects, project managers, and lawyers — under the BPP Standard Request for Proposals (RFP) and Standard Conditions of Contract for Consulting Services.
A Public Procurement Contract is needed when a parastatal such as the Nigerian National Petroleum Company Limited (NNPC), the Nigerian Ports Authority (NPA), or the Federal Airports Authority of Nigeria (FAAN) awards a supply or service contract following a competitive tender, with the contract subject to both the Public Procurement Act 2007 and the specific enabling legislation of the parastatal.
A Public Procurement Contract is required when a government entity enters into a Public-Private Partnership (PPP) arrangement regulated by the Infrastructure Concession Regulatory Commission (ICRC) under the Infrastructure Concession Regulatory Commission (Establishment, etc.) Act 2005, where the concession agreement must comply with both the ICRC Act and the Public Procurement Act 2007.
Parties in Nigeria should prepare a Public Procurement Contract (Nigeria) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under Nigerian law, the Companies and Allied Matters Act 2020 (CAMA) regulates corporate entities through the Corporate Affairs Commission (CAC). The Labour Act (Cap L1 LFN 2004) and the National Industrial Court of Nigeria (NICN) govern employment disputes. The Nigeria Data Protection Regulation (NDPR) 2019 and the Nigeria Data Protection Commission (NDPC) protect personal data. The Federal Inland Revenue Service (FIRS) administers tax obligations under the Companies Income Tax Act. The Federal High Court and state High Courts have jurisdiction over civil matters. Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.
What to Include in Your Public Procurement Contract (Nigeria)
A valid Public Procurement Contract in Nigeria must contain the following essential elements under the BPP Standard Conditions of Contract and the Public Procurement Act 2007.
Parties and Authority: Full legal names and addresses of the procuring entity and the contractor/supplier, with the authorised signatories' designations and the relevant BPP Certificate of No Objection (CNO) number. For corporate contractors, the Companies and Allied Matters Act 2020 (CAMA 2020) RC number, board resolution authorising contract execution, and PENCOM compliance certificate (for contracts above NGN 5 million) must be included.
Scope of Works/Supply/Services: A precise, detailed description of the goods, works, or services to be provided, by reference to the technical specifications, drawings, bill of quantities (BOQ), or statement of requirements in the BPP Standard Bidding Documents. The scope must correspond exactly to what was offered in the winning bid.
Contract Price: The agreed contract sum in Nigerian Naira (NGN), as stated in the letter of award and the priced BOQ or schedule of rates. The contract should state whether the price is fixed (lump sum) or adjustable (subject to price fluctuation under the contract conditions). BPP Standard Conditions provide for price adjustment for contracts exceeding 18 months using agreed indices.
Delivery/Completion Schedule: Milestones or completion dates for each phase of the works, supply, or services, with liquidated damages provisions for delayed completion at a rate (typically 0.1% per day of delay, subject to a cap of 10% of contract value) as specified in the BPP contract conditions.
Payment Terms: The payment mechanism — advance payment, milestone payments, or payment against deliverables — with reference to the BPP requirements for advance payment guarantees (typically for advance payments exceeding 15% of contract value). The procuring entity must pay within the period prescribed by the BPP (typically 28 days of an approved invoice).
Variations: The procedure for instructing and valuing variations (changes to scope), including the engineer's or project manager's authority to issue variation orders, the contractor's right to object to variations, and the threshold above which the BPP's prior approval is required for variations under Section 34 of the Public Procurement Act 2007.
Dispute Resolution: The agreed procedure for resolving disputes — typically Engineer's Decision, then Dispute Adjudication Board (DAB), then arbitration under the Lagos Court of Arbitration Rules or the Regional Centre for International Commercial Arbitration (RCICA) — as required by BPP Standard Conditions of Contract.
Additional compliance elements for a Public Procurement Contract (Nigeria) used in Nigeria include: Under Nigerian law, the Companies and Allied Matters Act 2020 (CAMA) regulates corporate entities through the Corporate Affairs Commission (CAC). The Labour Act (Cap L1 LFN 2004) and the National Industrial Court of Nigeria (NICN) govern employment disputes. The Nigeria Data Protection Regulation (NDPR) 2019 and the Nigeria Data Protection Commission (NDPC) protect personal data. The Federal Inland Revenue Service (FIRS) administers tax obligations under the Companies Income Tax Act. The Federal High Court and state High Courts have jurisdiction over civil matters. Forms-legal.com provides this template as a starting point for Nigeria-compliant documentation.
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Forms Legal. (2026). Public Procurement Contract (Nigeria) (Nigeria) [Legal document template]. Forms Legal. https://forms-legal.com/nigeria/business/contracts/public-procurement-contract-nigeria
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title = {Public Procurement Contract (Nigeria) (Nigeria)},
year = {2026},
howpublished = {\url{https://forms-legal.com/nigeria/business/contracts/public-procurement-contract-nigeria}},
note = {Free legal document template. Based on Companies and Allied Matters Act (CAMA) 2020}
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Frequently Asked Questions
A Bureau of Public Procurement (BPP) Certificate of No Objection (CNO) is a mandatory approval issued by the BPP before federal government procurement contracts above prescribed threshold amounts are executed. Under Section 16(11) of the Public Procurement Act 2007, no federal MDA (Ministry, Department, or Agency) may award or execute a procurement contract above the relevant threshold without first obtaining a CNO from the BPP. The current thresholds requiring a CNO are: NGN 100 million for goods and services, NGN 500 million for works contracts, and NGN 2.5 billion for large infrastructure projects — though these thresholds are subject to revision by the BPP through periodic circulars. The CNO process involves the procuring entity submitting a procurement file (including the approved bid evaluation report, letter of award, draft contract, and due diligence documents) to the BPP for review. The BPP assesses whether the procurement complied with the Act and the Standard Bidding Documents before issuing the CNO. A contract executed without a CNO is null and void under Section 16(11) of the Act, and government officers who authorise such contracts may face prosecution under Section 58 of the Public Procurement Act 2007 and the Public Officers (Special Provisions) Act.
The Public Procurement Act 2007 and the Bureau of Public Procurement (BPP) Procurement Procedures Manual establish financial thresholds that determine the type of competitive process required for each procurement. For federal procurement, the current BPP thresholds include: Open Competitive Bidding (National) for works above NGN 50 million; Open Competitive Bidding (International) for works above NGN 2.5 billion; Open Competitive Bidding for goods above NGN 10 million; and Restricted Tendering (for specialised items with limited suppliers) for goods and services between NGN 1 million and NGN 10 million. Below the open competitive bidding threshold, direct procurement or shopping procedures may apply for minor purchases. For consulting services, the BPP recommends Quality and Cost-Based Selection (QCBS) for assignments above NGN 10 million. State procurement laws in Lagos (Lagos State Public Procurement Law 2011), Rivers, Ogun, and other states set their own thresholds, which may differ from federal thresholds. Failure to use the correct procurement method — for example, using direct procurement to avoid competitive bidding — is an offence under Section 58 of the Public Procurement Act 2007 and attracts criminal liability for the responsible officers.
Disputes under Nigerian public procurement contracts are resolved through a tiered process set out in the BPP Standard Conditions of Contract and governed by the Public Procurement Act 2007. The first tier is the Engineer's Decision (for works contracts) or the Project Manager's Decision (for goods and services), under which the supervising professional issues a binding determination within 28 days. Either party dissatisfied with the Engineer's Decision may refer the dispute to a Dispute Adjudication Board (DAB) — a standing or ad hoc panel of experts — which issues a binding decision within 84 days under FIDIC-aligned BPP contract conditions. Dissatisfied parties may then refer the dispute to arbitration: for federal government contracts, arbitration is conducted under the Arbitration and Conciliation Act (Cap A18, LFN 2004) or, increasingly, before the Lagos Court of Arbitration (LCA) or the Regional Centre for International Commercial Arbitration (RCICA). The Federal High Court has exclusive jurisdiction over civil proceedings arising from federal government procurement under Section 251(1)(r) of the 1999 Constitution, while state government contract disputes fall within the jurisdiction of the relevant State High Court. BPP review panels under Section 54 of the Public Procurement Act 2007 also have authority to review procurement decisions before contract award, but not after.
Contractors bidding for Nigerian government contracts must satisfy several registration requirements before they can be considered for award. For federal government procurement, contractors must be registered with the Bureau of Public Procurement (BPP) Contractor Registration Database, which requires: a valid Certificate of Incorporation from the Corporate Affairs Commission (CAC) under the Companies and Allied Matters Act 2020 (CAMA 2020); a current Tax Clearance Certificate from the Federal Inland Revenue Service (FIRS) covering the three preceding years of assessment; a Pension Clearance Certificate from the National Pension Commission (PENCOM) confirming compliance with the Pension Reform Act 2014; a current Industrial Training Fund (ITF) compliance certificate; and, for works contracts, registration with the relevant professional body — COREN (Council for the Regulation of Engineering in Nigeria) for engineering works, ARCON (Architects Registration Council of Nigeria) for building design, or NIOB (Nigerian Institute of Building) for building construction. For works in the oil and gas sector, registration with the Nigerian Content Development and Monitoring Board (NCDMB) under the Nigerian Oil and Gas Industry Content Development Act 2010 is mandatory.
A public procurement contract in Nigeria can be terminated early through two routes: termination for convenience by the procuring entity, and termination for cause (breach). Under the BPP Standard Conditions of Contract for Works, the procuring entity may terminate for convenience by giving written notice to the contractor, in which case the contractor is entitled to payment for all work properly executed and materials delivered up to the termination date, plus demobilisation costs, but not for anticipated profit on the uncompleted portion of the works. Termination for cause — due to the contractor's persistent failure to perform, insolvency, or abandonment of works — requires the procuring entity to serve a notice specifying the default and allowing a cure period (typically 14–28 days) before termination takes effect. The BPP Standard Conditions require the procuring entity to notify the BPP of any contract termination under Section 16(21) of the Public Procurement Act 2007. On termination, the procuring entity may call the performance bond and engage a replacement contractor. The terminated contractor retains the right to refer disputes about the valuation of work done at termination to the Dispute Adjudication Board (DAB) and, if necessary, to arbitration under the Arbitration and Conciliation Act (Cap A18, LFN 2004).
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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