ABUJA — The Federal Government has issued a fresh directive barring all ministries, departments, and agencies (MDAs) from awarding contracts or incurring any financial commitments without prior warrant authority confirming the availability of funds.
Minister of Finance, Wale Edun, announced the measure on Wednesday in Abuja during a forum on the implementation of extended capital budgets under the Bottom-Up Cash Planning Policy. He said the move is designed to strengthen fiscal discipline and ensure the prudent management of the nation’s limited resources.
According to Edun, the Accountant-General of the Federation has been mandated to develop a new business process enabling MDAs to download and attach Warrants or Authorities to Incur Expenditure (AIEs) as proof of funds availability during tender board meetings.
“Henceforth, Warrants/AIEs will be issued to MDAs before any legal commitment is made, serving as evidence that funds are available for the award of contracts or payment for ongoing and completed projects,” Edun stated.
“For the avoidance of doubt, no letter of award should be issued, no contract signed, and no financial obligation entered into unless the corresponding Warrants/AIEs covering the full or committed portion of the contract sum have been duly released,” he added.
The minister urged MDAs to prudently manage the resources allocated to them and to optimise revenue collection. He also disclosed that the government is putting in place funding mechanisms for both the extended 2024 and 2025 capital budgets, particularly for priority projects.
This development comes months after Senator Abdul Ahmed Ningi of Bauchi Central raised concerns over delayed payments to contractors in 2024.
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