Federal Govt bars MDAs from awarding contracts without warrant

Gbenga Odunsi
2 Min Read
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The Nigerian government has barred ministries, departments, and agencies from awarding contracts without warrant authority to incur expenditure.

The Minister of Finance, Wale Edun, made this known at an event on Wednesday in Abuja on the implementation of the extended capital budgets under the Bottom-Up Cash Planning Policy.

According to him, this move is aimed at ensuring the adequate management of the country’s resources.

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He said that the Accountant-General of the Federation had been directed to develop a new business process enabling MDAs to download and attach warrants/AIEs as proof of funds availability during tender board meetings.

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“Henceforth, Warrants/AIEs will be issued to MDAs prior to legal commitment to serve as evidence of funds available for award of contracts or processing of payment for ongoing and completed projects. For the avoidance of doubt, you are to ensure that no letter of award is issued, contract signed, or any financial obligation entered into unless the corresponding Warrants/AIEs covering the full or committed portion of the contract sum have been duly released.

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“It is, therefore, a call for you all to prudently manage the limited resources that will be allocated to your MDA as well as optimise revenue realisation as they fall due,” he stated.

He also said the government is putting in place measures to implement the 2024 and 2025 capital budgets component, especially priority projects.

“We are putting in place measures to fund the extended 2024 and 2025 capital budgets as they fall due, particularly the priority projects of the government,” he said.

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DAILY POST recalls that the lawmaker representing the Bauchi Central Senatorial District, Abdul Ahmed Ningi, raised an alarm over the non-payment of contractors last year.

Federal Govt bars MDAs from awarding contracts without warrant

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