FG Orders MDAs to Obtain Warrants Before Awarding Contracts

The federal government has directed all ministries, departments, and agencies (MDAs) to refrain from awarding contracts without obtaining proper warrant authority for expenditure. The directive was issued by Finance Minister Wale Edun during an event in Abuja on the implementation of extended capital budgets under the Bottom-Up Cash Planning Policy.

Edun explained that the move is designed to ensure prudent management of public resources. He instructed the Accountant-General of the Federation to establish a system allowing MDAs to download and attach warrants or Appropriation-in-Excess (AIEs) as proof of fund availability during tender board meetings.

The minister emphasized that no contract should be signed, letter of award issued, or financial obligation incurred without the corresponding warrants/AIEs covering the full or committed contract sum. He described the directive as essential for optimizing revenue realization and safeguarding the allocation of limited government resources.

Edun also highlighted that measures are being put in place to ensure timely funding for priority projects under the 2024 and 2025 capital budgets. The announcement comes amid concerns raised by lawmakers over delayed payments to contractors in previous years.