ABUJA: The Federal Government has vowed to clamp down on inflated public contracts and procurement violations, warning accounting officers and heads of government institutions that breaches of procurement regulations will attract sanctions.
The Secretary to the Government of the Federation (SGF), George Akume, issued the warning in a circular directing federal government-owned enterprises, corporations, councils, authorities, commissions and other public institutions spending public funds to comply strictly with the Public Procurement Act, 2007, as amended.
The directive follows concerns over public contracts awarded above approved pricing benchmarks, restricted competition through exclusive contractor arrangements and inadequate regulatory oversight.
Akume expressed concern that several government-owned enterprises and corporations continued to award contracts without complying with procurement requirements, despite amendments introduced through the Finance Act, 2020.
According to the SGF, the violations have contributed to inflated contract sums, restricted competition and departures from approved procurement guidelines.
The circular, addressed to ministers, permanent secretaries, heads of agencies and other senior government officials, stressed that the Federal Government would no longer tolerate such practices.
This non-compliance is unacceptable and will no longer be tolerated,” Akume stated.
Under the directive, heads of affected institutions, who also serve as accounting officers, are required to ensure that procurement activities comply with the law.
Akume instructed the officials to liaise with the Bureau of Public Procurement (BPP) for guidance on implementing the regulations and maintaining transparency in contract awards.
The circular warned that accounting officers who continue to award contracts in violation of the Public Procurement Act would face sanctions.
It also directed that the circular be circulated among all accounting officers for immediate and strict compliance.
The government said the directive is intended to strengthen transparency, accountability and value for money in public spending.
The Public Procurement Act, 2007, established the Bureau of Public Procurement as the regulatory authority responsible for monitoring public procurement, setting standards and promoting competitive and transparent contracting processes.
Section 15, as amended by the Finance Act, 2020, extends the law’s application to federal government-owned enterprises, corporations, councils, authorities and commissions, provided they utilise public funds.
Section 20 also places responsibility for procurement compliance on accounting officers, including permanent secretaries and heads of government agencies and corporations.
The latest directive reinforces these obligations, particularly for institutions outside conventional ministries and departments.
The warning comes amid broader government measures aimed at preventing contract inflation and strengthening procurement oversight.
In October 2025, the Federal Executive Council directed the strict application of the Public Procurement Act across federal institutions, including government-owned companies, the National Assembly, the Judiciary and national defence and security agencies when utilising public funds.
In October 2026, the Federal Government also directed the implementation of a mandatory 14-calendar-day standstill period between the announcement of an intended contract award and the conclusion of procurement contracts.
The measure is designed to allow unsuccessful bidders to seek clarification, request debriefing or lodge complaints before contracts are finalised.
Additionally, under the National Guideline on Debarment of Contractors, Consultants and Service Providers, contractors found culpable of specified violations, including fraud, corruption, falsification of documents and persistent failure to execute contracts, may be barred from federal procurement for between three and five years.
In May 2026, the Bureau of Public Procurement introduced tighter controls on upward revisions of contract sums, requiring certification from the bureau before proposed variations are forwarded to the relevant approving authority.
The guidelines cover variation orders, fluctuation claims and modifications to project scopes, irrespective of contract value.
The BPP said the reforms were intended to prevent contract variations from becoming channels for inflating public spending.
The bureau’s Director-General, Dr Adebowale Adedokun, had also disclosed in August 2026 that the Federal Government saved approximately ₦1.4tn in 18 months through price intelligence and benchmarking initiatives.
He explained that the system enables the bureau to assess project costs against established pricing standards before procurement approvals are granted.
The bureau also reported that procurement reviews saved the Federal Government more than ₦303bn, $304.9m and €1.74m from inflated contract costs between January and September 2025.
The reported savings were based on the bureau’s own assessment of contracts reviewed.
The latest directive signals the Federal Government’s renewed emphasis on procurement compliance, with accounting officers expected to play a central role in preventing inflated contract costs, strengthening accountability and ensuring that public resources deliver value.
