The Federal Government has directed all Ministries, Departments and Agencies (MDAs) to refrain from awarding contracts or entering into any financial commitments without first obtaining the necessary budgetary approval and cash backing.
The directive is part of renewed efforts to strengthen fiscal discipline, improve transparency in public spending and ensure strict compliance with Nigeria’s procurement and financial management laws.
Under the new measure, government agencies are prohibited from initiating projects or committing public funds unless the expenditure has been duly appropriated in the national budget and backed by the required cash allocation.
The policy is expected to curb the growing trend of unfunded contracts, reduce the accumulation of liabilities and prevent abandoned projects resulting from inadequate financing.
Officials say the move reinforces the government’s commitment to prudent management of public resources, while ensuring that all procurement processes align with existing financial regulations and budgetary provisions.
The directive serves as a clear warning that any Ministry, Department or Agency found violating the policy could face sanctions in accordance with extant financial and procurement laws.
Analysts believe the development will enhance accountability in public finance, restore confidence in government spending and promote more efficient implementation of capital projects across the country.
