The Federal Government has threatened sanctions against heads of government agencies and publicly funded institutions that violate procurement regulations, warning that inflated contract costs and other irregularities will no longer be tolerated.
The Secretary to the Government of the Federation, George Akume, issued the warning in a circular directing accounting officers of government-owned enterprises, corporations, councils, authorities and commissions to comply with the Public Procurement Act, 2007, as amended by the Finance Act, 2020.
Akume said some federal institutions continued to award contracts outside the provisions of the law, resulting in prices above approved benchmarks, restricted competition and inadequate regulatory oversight. He described the violations as unacceptable and directed all affected institutions that utilise public funds to comply strictly with procurement requirements.
The SGF instructed heads of the institutions, who serve as accounting officers, to consult the Bureau of Public Procurement (BPP) for guidance. He also directed that the circular be circulated to all accounting officers for immediate implementation, warning that those who continued to breach the regulations would face sanctions.
The Public Procurement Act established the BPP to regulate and monitor public procurement, promote transparency and ensure competitive processes. Section 15, as amended by the Finance Act, 2020, extends the law to federal government-owned institutions that spend public funds, while Section 20 places responsibility for procurement compliance on accounting officers.
The directive follows other government measures aimed at curbing contract inflation. In October 2026, the Federal Government introduced a mandatory 14-calendar-day standstill period between announcing an intended contract award and finalising it, allowing unsuccessful bidders to seek clarification or lodge complaints. In May, the BPP also introduced stricter controls requiring its certification before contract variations, changes in project scope and related cost adjustments could proceed.
BPP Director-General, Dr Adebowale Adedokun, disclosed in August that the government had saved about ₦1.4tn in 18 months through price intelligence and benchmarking initiatives. The bureau also reported savings exceeding ₦303bn, $304.9m and €1.74m from reviews of inflated contract costs between January and September 2025. The latest directive reinforces the government’s position that publicly funded contracts must comply with procurement laws and deliver value for money.
