The Federal Government has directed all Ministries, Departments and Agencies (MDAs) to stop awarding contracts or making financial commitments without first obtaining budgetary approval and confirmed cash backing.
The directive, contained in a Federal Treasury Circular dated July 31, 2026, was signed by the Accountant-General of the Federation, Dr Shamseldeen Ogunjimi, and sent to ministers, permanent secretaries, heads of agencies and other accounting officers.
According to the circular, the new guidelines were introduced after widespread violations of the Public Procurement Act 2007 and other financial regulations governing public expenditure.
The government stated that no MDA is permitted to issue contract award letters, sign contracts or incur financial obligations unless a Warrant or Authority to Incur Expenditure (AIE) covering the contract value has been released by the Minister of Finance through the Office of the Accountant-General.
MDAs have also been instructed to attach copies of Warrants or AIEs generated through the Government Integrated Financial Management Information System (GIFMIS) as proof that funds are available before contracts are awarded or payments processed.
The circular further warned that financial commitments, including purchase invoices and employee-related payments, must not exceed the value of available warrants, while the Bureau of Public Procurement will process only requests supported by valid funding approvals.
The Accountant-General reminded accounting officers that awarding contracts without budgetary provision, approval and cash backing is an offence under the Independent Corrupt Practices and Other Related Offences Commission (ICPC) Act 2000.
The government said the directive is part of its broader fiscal discipline agenda and is expected to reduce abandoned projects, prevent unpaid contractual liabilities and ensure capital projects are executed only when adequate funding is available.
