From Victor Osula, Abuja
The Federal Government has directed all Ministries, Departments, and Agencies (MDAs) to stop issuing contract award letters without warrants or Authority to Incur Expenditure (AIE) from the Minister of Finance.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, announced the order on Wednesday during a one-day stakeholder engagement with permanent secretaries and accounting officers on the implementation of the 2025 capital budget.
He explained that the requirement for warrants or AIEs, serving as proof of available funds, would ensure that payments to beneficiaries are made immediately after projects are completed.
The measure, he added, aims to channel government resources only into priority projects while enhancing transparency and accountability in capital budget execution.
Edun said the policy would make the payment process more rigorous and transparent, with suppliers, contractors, and service providers receiving direct payments from the government.
Responding to concerns from participants who had already awarded 2025 capital project contracts before the new order, he assured them that contracts processed under existing procedures would still be funded, noting that the new directive would apply to future transactions.
Accountant-General of the Federation, Samseldeen Ogunjimi, also cautioned against breaches of financial regulations by MDAs, citing cases of awarding new contracts instead of completing ongoing ones, transferring funds to vendors before execution, and spending internally generated revenue without approval.
“No letter of award, contract signing, or financial obligation should be undertaken without the corresponding warrants or AIEs covering the full or committed portion of the contract sum.”
