The Federal Government has issued a strict directive prohibiting Ministries, Departments, and Agencies (MDAs) from awarding contracts or assuming financial commitments without verified budgetary provisions and cash backing.
The mandate was detailed in a Treasury Circular signed by the Accountant-General of the Federation, Dr. Shamseldeen Ogunjimi. According to the guidelines, MDAs are forbidden from issuing award letters or executing agreements without a valid Warrant or Authority to Incur Expenditure (AIE) issued by the Minister of Finance.
The directive aims to address widespread non-compliance with the Public Procurement Act 2007, curb the spread of abandoned projects nationwide, and stop the accumulation of unpaid contractual debts.
The circular warned accounting officers that issuing unfunded contracts remains an offense under the Independent Corrupt Practices and Other Related Offences Commission (ICPC) Act.
"No MDA shall issue letters of award, sign contracts, or enter into any financial obligations unless the corresponding Warrant/AIE covering the full or committed portion of the contract sum has been duly released." — Treasury Circular, Office of the Accountant-General
#FederalGovernment #Budget2026 #PublicProcurement #FiscalPolicy #AccountantGeneral #NigeriaEconomy #TinubuAdministration
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