Federal Govt Stops MDAs From Awarding Contracts Without Cash Backing

The federal government has tightened controls on the implementation of the 2026 capital budget, directing ministries, departments and agencies (MDAs) not to award contracts, sign agreements or incur financial obligations without approved expenditure warrants and confirmed cash backing.
The directive, contained in a Treasury Circular dated July 31 and signed by the Accountant-General of the Federation, Shamseldeen Ogunjimi, requires MDAs to obtain a Warrant or Authority to Incur Expenditure (AIE) issued by the Minister of Finance and transmitted to the Office of the Accountant-General before awarding contracts or committing public funds.
According to the circular, MDAs must attach copi...