The Federal Government has issued a directive prohibiting Ministries, Departments, and Agencies (MDAs) from awarding contracts or entering into financial commitments without securing budgetary approval and cash backing.
The order, contained in a Federal Treasury Circular dated July 31, 2026, was signed by the Accountant-General of the Federation, Dr. Shamseldeen Ogunjimi, and addressed to ministers, permanent secretaries, heads of agencies, accounting officers, and federal pay officers.
According to Ogunjimi, the new operational guidelines were introduced to curb widespread violations of the Public Procurement Act, 2007, and other financial regulations governing public expenditure.
The circular emphasized that:
No expenditure shall be incurred without a valid Warrant or Authority to Incur Expenditure (AIE).
MDAs must attach Warrants or AIEs generated through the Government Integrated Financial Management Information System (GIFMIS) as proof of available funds before awarding contracts or processing payments.
Financial commitments, including invoices and employee payables, must not exceed uncommitted warrant balances.
The Bureau of Public Procurement was also directed to process only requests for “No Objection” certificates backed by valid Warrants or AIEs. Ogunjimi reminded accounting officers that awarding contracts without adequate funding constitutes an offence under the ICPC Act, 2000.
To strengthen fiscal discipline, MDAs are required to submit annual and quarterly cash plans for their capital budgets, prioritizing projects in line with government policy objectives.
The Tinubu administration said the move is part of its economic reform agenda to enforce transparency, reduce abandoned projects, and ensure value for money in public expenditure.
Advertise on NigerianEye.com to reach thousands of our daily users
No comments
Post a Comment
Kindly drop a comment below.
(Comments are moderated. Clean comments will be approved immediately)
Advert Enquires - Reach out to us at NigerianEye@gmail.com