The Bola Ahmed Tinubu-led Federal Government has directed Ministries, Departments and Agencies not to award contracts or enter into financial commitments without first obtaining the required budgetary approval and cash backing.
Naijaonpoint reports that the directive, aimed at strengthening fiscal discipline and enforcing compliance with procurement regulations, was contained in a Federal Treasury Circular dated July 31, 2026, and signed by the Accountant-General of the Federation, Dr Shamseldeen Ogunjimi.
The circular, obtained on Sunday, was addressed to ministers, permanent secretaries, heads of extra-ministerial departments and agencies, accounting officers and federal pay officers.
According to the Accountant-General, the fresh guidelines became necessary following widespread violations of the Public Procurement Act, 2007, and other financial regulations governing public expenditure.
The circular stated, “Further to the Treasury Circular… captioned ‘Revised Policy on Cash Management and Bottom-Up Cash Plan Operational Guidelines,’ it has become necessary to strengthen and deepen the implementation of the policy sequel to the observed non-compliance with the Public Procurement Act, 2007, and other extant laws and regulations.”
It added that the operational guidelines were issued to ensure full compliance with the implementation of the 2026 capital budget.
The government directed that no MDA should award contracts or incur financial obligations without first obtaining a Warrant or Authority to Incur Expenditure.
It stated, “No expenditure shall be incurred except on the authority of a Warrant/AIE (including employee payables). Accordingly, no MDA shall issue letters of award, sign contracts, or enter into any financial obligations unless the corresponding Warrant/AIE covering the full or committed portion of the contract sum has been duly released.”
The Office of the Accountant-General also instructed MDAs to attach copies of Warrants or AIEs generated through the Government Integrated Financial Management Information System as proof that funds were available before contracts were awarded or payments processed.
The circular further directed that financial commitments, including purchase invoices and employee-related obligations, must not exceed available warrant balances.
“All MDAs shall ensure that financial commitments (purchase invoices and employee payables) are limited to uncommitted warrant balances; and at no time should financial commitments exceed the amount of Warrants/AIEs available,” it stated.
The Bureau of Public Procurement was also instructed to process only applications for “No Objection” certificates supported by valid Warrants or AIEs.
The Accountant-General reminded accounting officers that awarding contracts without adequate funding constitutes an offence under existing anti-corruption laws.
“Accounting Officers are invited to note that it is an offence under the ICPC Act 2000 to award or sign any contract without budgetary provision, approval and cash backing,” the circular stated.
To improve budget implementation, the Federal Government directed all MDAs to submit annual and quarterly cash plans for their capital budgets to the Office of the Accountant-General.
According to the circular, annual cash plans beginning from July 15, 2026, together with the first quarterly cash plan, were to be submitted on or before July 31, while subsequent quarterly cash plans must be submitted by the 15th day of the first month of every new quarter.
The government also instructed MDAs to prioritise projects in line with national policy objectives.
The Cash Management Technical Committee will continue reviewing implementation plans and advising the Federal Cash Management Committee on priority projects, while accounting officers and directors of finance will be responsible for ensuring prudent cash management within their institutions.
The circular urged all accounting officers, chief executives, directors of finance, internal auditors and other relevant officials to ensure strict compliance.
