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Violation of Public Procurement Act: FG bars MDAs from awarding unfunded contracts

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Required budgetary approval and cash backing have been stressed by the federal Government in a move aimed at tightening fiscal discipline and enforcing compliance with procurement laws.

Consequently, the Federal Government has barred Ministries, Departments and Agencies from awarding contracts or entering into any financial commitments without first securing their approvals.

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 key government officials, including ministers, permanent secretaries, heads of extra-ministerial departments and agencies, accounting officers, and federal pay officers, the circular, according to the Accountant- General, with new operational guidelines are to stem 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, “To ensure full compliance and seamless implementation of the policy, the following operational guidelines for the implementation of the 2026 capital budgets are hereby issued.”

A key provision of the circular stipulates that no MDA can issue letters of award, sign contracts, or incur financial obligations without first obtaining a Warrant or Authority to Incur Expenditure.

“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 by the Honourable Minister of Finance and Coordinating Minister of the Economy to the Accountant-General of the Federation.”

The Office of the Accountant-General also directed MDAs to download and attach copies of Warrants or AIEs generated through the Government Integrated Financial Management Information System (GIFMIS) as evidence that funds are available before contracts are awarded or payments are processed.

In addition, the circular warned that financial commitments, including purchase invoices and employee payables, must not exceed the value of available warrants.

“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.”

In another directive, the Bureau of Public Procurement was instructed to process only requests for “No Objection” certificates that are supported by valid Warrants or AIEs.

The Accountant-General also reminded accounting officers that awarding contracts without adequate funding constitutes an offence under 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 execution, the government directed all MDAs to submit annual cash plans and quarterly cash plans for their capital budgets to the Office of the Accountant-General.

The circular stated that annual cash plans, commencing from July 15, 2026, alongside the first quarterly cash plan, were to be submitted on or before July 31, 2026, while subsequent quarterly cash plans must be submitted on or before the 15th day of the first month of each new quarter.

It also instructed MDAs to prioritise projects and programmes in line with the Federal Government’s policy objectives.

The circular said the Cash Management Technical Committee would continue reviewing budget implementation plans and advising the Federal Cash Management Committee on priority projects, while accounting officers and directors of finance would be responsible for ensuring prudent cash management in their respective institutions.

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Benin-Asaba Road to Be Redesigned on Concrete Pavement

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The Minister of Works, Dave Umahi, has said the 136-kilometre Benin-Asaba Road will be redesigned with reinforced concrete pavement following a directive from President Bola Tinubu.

Umahi made this known on Thursday in Benin City during the ‘Operation Rescue Benin-Asaba Road’ event.

He also clarified that the Federal Government had not awarded any company a contract for the emergency rehabilitation of the road.

According to the minister, the government is currently carrying out temporary intervention works to improve the condition of the road while arrangements for its long-term reconstruction are being developed.

Umahi said the Federal Government had presented three options to the concessionaire for the continuation of the agreement, but none was accepted.

He said the development had led to a new approach, with President Tinubu directing the redesign of the entire 136-kilometre dual carriageway with reinforced concrete pavement.

The minister said the project had been defined and that immediate intervention would begin on the Benin Bypass.

Umahi further explained that the emergency rehabilitation was not awarded to Hitech or any other contractor.

He said the Ministry of Works had instead hired equipment from contractors operating along the road corridor, including Hitech, CECC and CBC, to carry out the temporary repairs.

According to him, the ministry is still sourcing additional equipment and plans to undertake intensive intervention works to improve the road within the next four weeks.

The minister said the temporary intervention is intended to make the road safer and more accessible while the Federal Government works on the permanent reconstruction of the route.l

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MY SECOND-TERM PROJECTS’LL BOOST COMMERCE, PRODUCTIVITY — OYEBANJI

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…Says Ekiti’ll take Tinubu’s re-election seriously

 

…As monarchs, youths pledge more support for governor

 

 

Ekiti State Governor, Mr Biodun Oyebanji, says projects to be executed during his second term will be strategically targeted at boosting commerce, enhancing productivity and stimulating sustainable business growth across the state.

 

The Governor also says Ekiti State will take the re-election bid of President Bola Ahmed Tinubu in the 2027 presidential election seriously, promising increased mobilisation to improve the President’s votes in the state.

 

Oyebanji spoke on Wednesday at a Town Hall Meeting with stakeholders from Ekiti North Senatorial District as part of consultations ahead of the 2027 Budget, held in Ifaki-Ekiti.

 

At the meeting, traditional rulers, community leaders, youths and other stakeholders pledged stronger support for the Governor’s second-term administration, which begins on October 16, 2026, to enable him to deliver on his shared prosperity agenda.

 

Oyebanji said his administration would sustain its consultative approach to governance in the second term, with greater emphasis on public participation and inclusive development.

 

He said government investments would be channelled strategically into critical sectors, including healthcare, electricity, roads and water supply, to improve living standards and enhance economic productivity.

 

The Governor said: “In our second term, whatever we are going to do must add value, because resources are limited. There must be value addition. We must catalyse productivity and ensure our people are productive.

 

“It is only when there is value that artisans like welders and auto mechanics can thrive and become prosperous.”

 

On electricity, Oyebanji said his administration had expanded access to power in some communities, but noted that existing legal provisions limiting states largely to electricity generation had affected efforts to fully address distribution challenges.

 

He reaffirmed his commitment to participatory governance, saying inputs from communities would continue to guide government’s decisions on project prioritisation.

 

“Governance is about the people. We are what we are today because of you. You gave us your mandate, and we must continue to seek your counsel in delivering good governance,” he said.

 

The Governor also commended traditional rulers for their support, particularly in intelligence gathering, which he said had contributed to improved security across the state.

 

He, however, urged residents to remain vigilant and continue to support security agencies with useful information.

 

On the 2027 presidential election, Oyebanji called on Ekiti voters to reciprocate what he described as President Tinubu’s support for the state by increasing the votes delivered to the President.

 

He cited federal appointments and infrastructure projects benefiting the state as evidence of the Federal Government’s attention to Ekiti.

 

“We must show appreciation. It will not be enough to repeat previous figures. We must do more in the next election,” he said.

 

On infrastructure, the Governor disclosed that collaboration with the Federal Government had facilitated the award of major road projects, including the Ado-Ijan-Ilumoba-Ikole and Ado-Aramoko-Ita-Ore roads.

 

He added that other critical roads across the state would be addressed subsequently.

 

Providing sectoral updates, the Commissioner for Health, Dr Oyebanji Filani, said more than 300 nurses and 1,500 health assistants had been recruited over the past four years.

 

He said the government had also upgraded several primary and secondary healthcare facilities, while three new general hospitals had been approved for Ipao, Ikogosi and Awo-Ekiti.

 

Also speaking, the Commissioner for Infrastructure and Public Utilities, Professor Bolaji Aluko, disclosed that more than 500 boreholes had been constructed across the state, while an additional 110 had been proposed to ensure equitable distribution of water.

 

In their remarks, traditional rulers and community representatives from Ekiti North Senatorial District commended the Governor for his development efforts and highlighted priority areas for consideration in the 2027 Budget.

 

Their requests included improved roads, electricity, water supply, healthcare and security.

 

Speaking on behalf of Ikole Local Government, the Alaaye of Oke Ayedun, Oba Femi Aribisala, appealed to the government to urgently intervene in the areas of roads, water and electricity.

 

He said poor road access and inadequate electricity supply were hindering economic activities and development in the area.

 

Representatives of Moba Local Government and the Obaleo of Erinmope, Oba Sunday Aniyi; Ido/Osi Local Government and the Olojudo of Ido-Ekiti, Oba Ayorinde Ilori-Faboro; as well as Oye Local Government and the Onisan of Isan-Ekiti, Oba Gabriel Adejuwon, also called for increased attention to roads, electricity, security and water supply in the 2027 Budget.

 

Dignitaries at the event included the Deputy Governor, Chief (Mrs) Monisade Afuye; Secretary to the State Government, Professor Habibat Adubiaro; Chief of Staff, Mr Oyeniyi Adebayo; Head of Service, Dr Folakemi Olomojobi; members of the State Executive Council; local government chairmen; traditional rulers; political leaders; and representatives of various community groups.

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FG Suspends 20 NSCDC Officers Over Deaths Of 37 Suspected Illegal Miners

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The Federal Government has suspended 20 officers of the Nigeria Security and Civil Defence Corps (NSCDC) over the reported deaths of 37 suspected illegal miners who were in the Corps’ custody in Niger State.

The Minister of Interior, Olubunmi Tunji-Ojo, announced the suspension on Saturday, following President Bola Tinubu’s directive for a transparent and comprehensive investigation into the incident, which occurred on Thursday.

Tunji-Ojo said the suspension would remain in place pending the outcome of the investigation. The affected officers include personnel involved in the arrest, investigation, security and detention of the suspected miners.

The Minister also constituted a 10-member independent committee to investigate the deaths and establish the identities of the deceased, the circumstances surrounding their arrest and detention, and the actual cause of death.

The committee is also expected to determine whether there was any responsibility, negligence or misconduct and recommend appropriate action, including compensation where necessary.

The committee is chaired by retired DSS Deputy Director-General, Jonathan Kure, mni, while Prof. Isa Hayatu Chiroma, SAN, a former Director-General of the Nigerian Law School, will serve as Secretary.

Other members include retired AIG Hosea Hassan Karma, Prof. Olayinka Buhari, representatives of the Minna Emirate Council and Niger State Government, the National Secretary of the Miners Association of Nigeria, Alhaji Liman Sulaiman, lawyer and human rights activist Deji Adeyanju, Blueprint Newspaper’s Zainab Suleiman Okino, and public affairs analyst Dr. George Agbakahi.

The committee has two weeks to complete its investigation and submit its report to the Minister.

Tunji-Ojo directed the NSCDC leadership and all relevant officers to fully cooperate with the investigation and ensure that all records and evidence relating to the incident are preserved.

He warned that anyone who attempts to destroy or conceal evidence, intimidate witnesses or obstruct the investigation would face serious consequences.

The Minister described the deaths as deeply disturbing, condoled with the families of the deceased and appealed for calm while the investigation continues.

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