The Federal Government has directed all Ministries, Departments and Agencies MDAs to stop awarding contracts or entering into financial commitments without first obtaining the required budgetary approval and cash backing.

The directive, contained in a Federal Treasury Circular was signed by the Accountant-General of the Federation, Shamseldeen Ogunjimi, and issued to ministers, permanent secretaries, heads of agencies, accounting officers and other relevant government officials.

According to the circular, the new guidelines were introduced to strengthen fiscal discipline and address widespread violations of the Public Procurement Act 2007 and other financial regulations governing public expenditure. Under the directive, no MDA is permitted to issue letters of award, sign contracts or incur any financial obligation without first obtaining a Warrant or Authority to Incur Expenditure covering the full or committed value of the contract.

— GUARDIAN