The Federal Government has directed Ministries, Departments and Agencies (MDAs) to stop awarding contracts or entering into financial commitments without prior budgetary approval and cash backing.

The directive, contained in a Treasury Circular signed by the Accountant-General of the Federation, Dr Shamseldeen Ogunjimi, aims to strengthen fiscal discipline and enforce compliance with the Public Procurement Act and other financial regulations.

Under the new guidelines, MDAs must obtain a Warrant or Authority to Incur Expenditure (AIE) before awarding contracts, signing agreements or incurring any financial obligations. They are also required to attach valid Warrants or AIEs generated through the Government Integrated Financial Management Information System (GIFMIS) before contracts are processed.

The circular further warned that financial commitments must not exceed available warrant balances, while the Bureau of Public Procurement will only process “No Objection” requests backed by valid budgetary approvals.

The government also directed MDAs to submit annual and quarterly cash plans, stressing that the measures are designed to improve budget implementation, curb abandoned projects and promote transparency and prudent management of public funds.