BREAKING: FG Bans Contract Award Letters Without Finance Minister’s Approval

The Federal Government has announced a sweeping directive aimed at tightening control over public spending, declaring that no Ministry, Department, or Agency (MDA) will henceforth be allowed to issue contract award letters without first obtaining warrants or an Authority to Incur Expenditure (AIE) from the Minister of Finance.

The order, revealed in Abuja, marks a significant shift in the country’s procurement process and is expected to curb unauthorized financial commitments that have plagued public projects for years. Under the new rule, MDAs will only be able to formalize contract awards after the finance ministry confirms the availability of funds and issues the necessary documentation.

Officials say the move is designed to enhance fiscal discipline, ensure transparency, and prevent the accumulation of debt from unbudgeted projects. Analysts note that the policy could slow down certain government contracts in the short term, but may help restore financial order in the long run.

This development comes amid broader economic reforms by President Bola Ahmed Tinubu’s administration, which has faced mounting public scrutiny over expenditure control, subsidy removals, and rising inflation. By centralizing contract approvals, the government is signaling a tougher stance on accountability and a determination to prevent what the finance ministry described as “reckless commitments of public resources.”

With this directive now in force, MDAs will have to navigate a stricter procurement landscape—one where every contract letter must carry the weight of the Finance Minister’s signature before it can see the light of day.