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Ministries, departments and agencies must now secure budgetary approval and cash backing before awarding contracts or entering into financial commitments.
This requirement comes from a new Federal Treasury circular aimed at enforcing fiscal discipline.
The directive, dated July 31, 2026, was signed by the Accountant-General of the Federation, Shamseldeen Ogunjimi. It was also addressed to ministers, permanent secretaries, heads of agencies, accounting officers and federal pay officers.
The circular noted that widespread violations of the Public Procurement Act, 2007, and other financial regulations had made the new operational guidelines necessary.
No MDA may sign contracts, issue letters of award, or take on financial obligations without first obtaining a Warrant or Authority to Incur Expenditure, according to a crucial clause.
“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 circular reads.
MDAs must also download and attach copies of Warrants or AIEs generated through the Government Integrated Financial Management Information System as proof of available funds. This requirement applies before processing contracts or payments.
The circular warned that financial commitments must not exceed the value of available warrants. In addition, the Bureau of Public Procurement would only process “No Objection” requests supported by valid warrants.
The Cash Management Technical Committee will continue reviewing budget implementation plans. It will also advise the Federal Cash Management Committee on priority projects.
