The Federal Government has directed all Ministries, Departments and Agencies (MDAs) to stop awarding contracts or entering into financial commitments without first obtaining budgetary approval and confirmed cash backing. The directive is aimed at strengthening fiscal discipline, improving budget implementation and enforcing compliance with Nigeria’s public procurement and financial management laws.

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The directive was contained in a Federal Treasury Circular dated July 31, 2026, and signed by the Accountant-General of the Federation, Dr. Shamseldeen Ogunjimi. Addressed to ministers, permanent secretaries, heads of extra-ministerial departments, accounting officers and federal pay officers, the circular cited widespread breaches of the Public Procurement Act, 2007, and other financial regulations as the reason for the new measures. It stated that no MDA should issue contract awards, sign agreements or incur financial obligations unless a corresponding Warrant or Authority to Incur Expenditure (AIE) covering the full or committed portion of the contract sum had been released.

The Office of the Accountant-General further directed MDAs to attach Government Integrated Financial Management Information System (GIFMIS)-generated Warrants or AIEs as proof of fund availability when processing payments or seeking “No Objection” certificates from the Bureau of Public Procurement (BPP). It also warned that financial commitments, including purchase invoices and employee-related obligations, must not exceed available warrant balances. According to the circular, awarding contracts without budgetary provision, approval and cash backing constitutes an offence under the Independent Corrupt Practices and Other Related Offences Commission (ICPC) Act, 2000.

To improve budget execution, the government instructed all MDAs to submit annual and quarterly cash plans for their capital budgets to the Office of the Accountant-General. The Cash Management Technical Committee will continue to review implementation plans and advise the Federal Cash Management Committee on priority projects, while accounting officers, directors of finance and internal auditors have been directed to ensure strict compliance with the new guidelines and promote prudent management of public funds.