Nigeria Bars Ministries from Awarding Unfunded Contracts

The Nigerian Federal Government issued a Treasury circular on 31 July 2026, signed by Accountant‑General Dr Shamseldeen Ogunjimi, prohibiting all ministries, departments and agencies (MDAs) from awarding contracts or incurring any financial obligations without prior budgetary approval and confirmed cash backing. The directive requires a Warrant or Authority to Incur Expenditure (AIE) covering the full contract value before any award letter can be issued.

The measure aims to curb abandoned projects, enforce compliance with the Public Procurement Act 2007 and other financial regulations, and strengthen fiscal discipline across the public sector. Officials warned that violations could attract sanctions under the ICPC Act and related financial laws.