In a major move to restore fiscal discipline and curb the menace of abandoned infrastructure, the Federal Government has strictly barred all Ministries, Departments, and Agencies (MDAs) from awarding contracts or committing to public spending without confirmed budgetary approval and cash backing.
The new directive, issued in a Federal Treasury Circular dated July 31, 2026, and signed by the Accountant-General of the Federation, Dr. Shamseldeen Ogunjimi, comes as a direct response to widespread non-compliance with the Public Procurement Act of 2007.
Addressed to top government figures, including ministers, permanent secretaries, and agency heads, the order mandates that no expenditure be incurred without a Warrant or Authority to Incur Expenditure (AIE) issued directly by the Ministry of Finance.
To ensure total transparency, MDAs are now required to generate, download, and attach verified AIE documents via the Government Integrated Financial Management Information System (GIFMIS) before issuing contract letters or processing payments.
Furthermore, the Bureau of Public Procurement (BPP) has been instructed to reject any request for a “No Objection” certificate that lacks these verified cash-backed documents.
Emphasizing the legal weight of the policy, the Accountant-General cautioned accounting officers that entering into contractual obligations without guaranteed cash backing constitutes an offence under the ICPC Act of 2000.
To further streamline implementation, MDAs must submit both annual and cash management plans to facilitate proper review and prioritization of capital expenditure by the Federal Cash Management Committee.
This latest enforcement strengthens the administration’s broader cash management reforms aimed at instilling accountability in public expenditure.
By locking down procurement guidelines, the government aims to eliminate uncompleted projects, reduce domestic debt liabilities owed to contractors, and guarantee that public resources yield genuine value for taxpayers.
