FG BANS MDAs FROM AWARDING CONTRACTS WITHOUT FINANCE MINISTER’S APPROVAL
In a decisive move to strengthen fiscal discipline and curb irregular contract awards, the Federal Government has directed that, henceforth, no Ministry, Department, or Agency (MDA) should issue contract award letters without first obtaining warrants or the Authority to Incur Expenditure (AIE) from the Minister of Finance.
The directive, which takes immediate effect, is aimed at ensuring strict compliance with budgetary provisions and financial regulations in the execution of government projects.
By mandating that all MDAs secure official clearance from the Ministry of Finance before awarding contracts, the government intends to block loopholes, prevent unauthorized spending, and promote greater transparency in public procurement.
This policy shift is expected to streamline the contract approval process, strengthen oversight functions, and safeguard public funds against mismanagement.
Officials say the measure forms part of ongoing reforms to align government spending with revenue realities and ensure value for money in all federally funded projects.
The Federal Government has warned that any violation of the new directive will attract strict administrative and legal sanctions.
