The Federal Government has directed all Ministries, Departments and Agencies (MDAs) to stop awarding contracts or entering into financial commitments without obtaining budgetary approval and adequate cash backing.
CDA News Nigeria reports that 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.
According to the circular, no MDA is permitted to issue contract awards, sign agreements or incur financial obligations unless a valid Warrant or Authority to Incur Expenditure (AIE) has been released by the Minister of Finance through the Office of the Accountant-General.
The government also directed MDAs to attach evidence of approved warrants generated through the Government Integrated Financial Management Information System (GIFMIS) before contracts are processed. It warned that awarding contracts without budgetary provision and cash backing violates existing financial regulations and the ICPC Act.
The circular further instructed the Bureau of Public Procurement to process only applications for “No Objection” certificates supported by valid funding approvals.
CDA News Nigeria gathered that the policy is aimed at improving fiscal discipline, reducing abandoned projects, preventing unpaid contractual liabilities and ensuring capital projects are executed only when sufficient funds are available.
The Federal Government said the new measures form part of ongoing reforms to strengthen transparency, accountability and efficient public spending.
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