Federal Government don promise to take strong action against government officials and public institutions wey dey inflate contract prices, as e warn say heads of government agencies, corporations, councils, authorities and commissions fit face punishment if dem fail to follow procurement laws.

Government raise concern over how some public institutions dey award contracts with prices wey pass approved amounts, give selected contractors special advantage and ignore rules wey suppose guide government spending.

Secretary to the Government of the Federation (SGF), George Akume, issue the warning through one circular wey direct accounting officers of Federal Government-owned companies and other public institutions to strictly follow the Public Procurement Act 2007 or face punishment.

The circular, wey our correspondent obtain for Abuja, go to ministers, permanent secretaries, heads of government agencies and other senior government officials.

Akume express concern say some government-owned companies and corporations still dey award contracts without following the procurement law, even after government amend the Act through Finance Act 2020.

According to am, this practice don lead to inflated contract prices, reduce competition among contractors and make proper government supervision difficult.

The SGF warn say government no go continue to tolerate these violations.

Akume therefore direct all government-owned companies, corporations, councils, authorities and commissions wey dey spend public money to make sure say their contract processes follow the Public Procurement Act.

E also direct heads of the affected institutions, wey dey serve as accounting officers, to contact the Bureau of Public Procurement (BPP) for proper guidance.

The circular explain say any accounting officer wey continue to award contracts without following the procurement law go face appropriate punishment.

Akume said government don discover say despite the provisions of Section 15 of the Public Procurement Act 2007, as amended by Finance Act 2020, some Federal Government-owned companies and corporations still dey award contracts without following the law.

According to the circular, this practice don cause government to award contracts with prices wey pass approved benchmarks, give some contractors special control over certain jobs, ignore approved guidelines and fail to provide proper regulatory supervision.

The SGF describe the situation as unacceptable and warn say government no go tolerate am again.

E explain say the directive na to make sure say transparency, accountability and proper use of public money dey guide government contract awards.

The circular state say all Federal Government-owned companies, corporations, councils, authorities and commissions wey dey use public funds must carry out their contract processes according to the Public Procurement Act 2007.

Akume also make am clear say heads of these institutions, wey serve as accounting officers, go personally answer for any failure to follow the procurement rules.

E specifically direct the accounting officers to work with the Bureau of Public Procurement for further explanation on how to properly carry out the directive.

The circular warn say any accounting officer wey ignore the instruction and continue to award contracts without following the law go face sanctions.

Akume further direct say all accounting officers must receive the circular and begin to follow the instruction immediately.

Among the senior officials and institutions wey receive the circular na the Chief of Staff to the President, Deputy Chief of Staff to the President, Principal Secretary to the President, Head of the Civil Service of the Federation, all ministers and ministers of state.

Others include the National Security Adviser, Economic Adviser to the President, special advisers, senior special assistants, Chief of Defence Staff, service chiefs, Inspector-General of Police and Governor of the Central Bank of Nigeria.

The circular also reach chairmen of the Federal Civil Service Commission, Police Service Commission, Code of Conduct Bureau, Code of Conduct Tribunal, Federal Character Commission, Revenue Mobilisation, Allocation and Fiscal Commission, Federal Inland Revenue Service and Independent National Electoral Commission.

Other institutions wey receive am include the National Population Commission, Independent Corrupt Practices and Other Related Offences Commission (ICPC), Economic and Financial Crimes Commission (EFCC) and National Drug Law Enforcement Agency (NDLEA).

The list also include all permanent secretaries, heads of extra-ministerial departments, Clerk of the National Assembly, Chief Registrar of the Supreme Court, Accountant-General of the Federation, Auditor-General for the Federation and directors-general and chief executives of government agencies, parastatals and government-owned companies.

Wetin Public Procurement Act Talk

The Public Procurement Act 2007 establish the Bureau of Public Procurement as the government agency wey dey responsible for monitoring and supervising how public institutions dey award contracts.

The bureau dey set standards and make sure say government contracts follow transparent and competitive processes.

Section 15 of the Act, as amended by Finance Act 2020, expand the law to cover Federal Government-owned companies, corporations, councils, authorities and commissions, as long as dem dey use public funds.

This amendment make am compulsory for institutions wey no be regular ministries or government departments to follow procurement rules whenever dem dey spend public money.

Section 20 of the Public Procurement Act also place responsibility for following procurement rules on accounting officers, including permanent secretaries and heads of government agencies and corporations.

The law make these officers responsible for supervising contract processes and ensuring say their institutions follow the rules.

The latest warning come as concerns dey increase over how government institutions dey award contracts and manage public funds.

For October 2025, Federal Executive Council direct government institutions to strictly follow the Public Procurement Act after its meeting wey hold on August 13, 2025.

The decision come through another circular wey Akume issue, directing government institutions, including government-owned companies, National Assembly, Judiciary, national defence and security agencies and Central Bank of Nigeria, to follow procurement rules whenever dem dey spend public funds.

For another move to strengthen accountability, Federal Government for October 2026 direct the introduction of one compulsory 14-calendar-day waiting period between the announcement of an intended contract award and the final signing of the contract.

The waiting period go give contractors wey no win the opportunity to ask questions, request explanation about the decision or submit complaints before government finally conclude the contract.

Government don also introduce tougher measures against contractors wey involve themselves in fraud, corruption, falsification of documents and repeated failure to complete government projects.

Under the National Guideline on Debarment of Contractors, Consultants and Service Providers, contractors wey dem find guilty of these offences fit receive a ban from participating in Federal Government contracts for between three and five years.

The latest directive further show say government dey strengthen its efforts to stop inflated contract prices, improve supervision of public contracts and prevent government officials from using contract adjustments to increase public spending.

For May 2026, The PUNCH report say the Bureau of Public Procurement stop Ministries, Departments and Agencies (MDAs) from processing increases in contract prices without first obtaining certification from the bureau.

The latest warning reinforce government’s position say all public contracts must follow the law, while accounting officers must take responsibility for making sure say public money dey spent transparently and according to approved procedures.