Nigeria bars unfunded contracts
Analysis based on 7 articles · First reported Aug 03, 2026 · Last updated Aug 04, 2026
The directive tightens fiscal discipline, potentially slowing contract awards and capital project execution in the short term, which may affect construction and related sectors. Over the long term, it aims to reduce abandoned projects and unpaid liabilities, improving budget credibility and investor confidence in Nigeria's public financial management.
On July 31, 2026, the Nigeria, through the Nigeria — Office of the Accountant General of the Federation, issued a Federal Treasury Circular prohibiting Ministries, Departments and Agencies (MDAs) from awarding contracts or entering into financial commitments without prior budgetary approval and confirmed cash backing. The directive, signed by Accountant-General Shamseldeen Ogunjimi, requires MDAs to obtain a Warrant or Authority to Incur Expenditure (AIE) before issuing award letters or signing contracts, and to attach GIFMIS-generated warrants as proof of funding. The Nigeria — Bureau of Public Procurement is instructed to process only 'No Objection' requests backed by valid warrants. The measure aims to enforce the Public Procurement Act 2007, curb abandoned projects, and strengthen fiscal discipline, with violations constituting an offence under the ICPC Act 2000. MDAs must also submit annual and quarterly cash plans, prioritizing projects aligned with government policy. This reinforces the revised cash management policy introduced in 2024.
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