The Federal Government has barred all Ministries, Departments and Agencies, MDAs, from awarding contracts or entering into financial commitments without budgetary approval and cash backing, in a major push to curb abandoned projects and enforce fiscal discipline.
The directive was contained in a Federal Treasury Circular dated July 31, 2026, signed by the Accountant-General of the Federation, Dr. Shamseldeen Ogunjimi.
The circular was addressed to ministers, permanent secretaries, heads of agencies, accounting officers, and federal pay officers nationwide.
No Warrant, No Award – New Rule For 2026 Budget
According to the Accountant-General, the fresh guidelines became necessary following widespread violations of the Public Procurement Act, 2007, and other financial regulations.
“No expenditure shall be incurred except on the authority of a Warrant/AIE,” the circular stated.
“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.”
MDAs were also directed to download and attach copies of Warrants or AIEs generated through GIFMIS as evidence that funds are available before contracts are awarded or payments are processed.
The circular further warned: “At no time should financial commitments exceed the amount of Warrants/AIEs available.”
In another directive, the Bureau of Public Procurement, BPP, was instructed to process only requests for “No Objection” certificates that are supported by valid Warrants or AIEs.
The Accountant-General also reminded accounting officers that awarding contracts without funding is a crime.
“Accounting Officers are invited to note that it is an offence under the ICPC Act 2000 to award or sign any contract without budgetary provision, approval and cash backing,” the circular stated.
To improve budget execution, all MDAs must now submit:
1. *Annual cash plans* – commencing from July 15, 2026. First submission due *on or before July 31, 2026*
2. *Quarterly cash plans* – due *on or before the 15th day of the first month of each new quarter*
The government also directed MDAs to *prioritise projects in line with Federal Government policy objectives*.
The *Cash Management Technical Committee* will continue reviewing budget implementation and advising on priority projects, while directors of finance and internal auditors will be responsible for prudent cash management.
The Tinubu administration says the move is part of its economic reform agenda to entrench *transparency, value for money, and fiscal discipline*.
Officials expect it to:
– *Reduce abandoned projects* across the country
– *Curb unpaid contractual liabilities*
– *Ensure capital projects are executed only when funds are available*
The latest circular strengthens the revised cash management policy introduced in 2024.
The Accountant-General urged all accounting officers, chief executives, and directors of finance to give the circular “the widest circulation and compliance.”