The Federal Government has warned heads of government-owned agencies, corporations, councils, authorities and commissions against inflating public contract costs and violating procurement regulations, threatening sanctions for institutions and officials found culpable.
The Secretary to the Government of the Federation, George Akume, gave the warning in a circular directing accounting officers of federal government-owned enterprises and other public institutions to comply strictly with the Public Procurement Act, 2007.
The circular, addressed to ministers, permanent secretaries and heads of government agencies and parastatals, expressed concern over the continued award of contracts outside the provisions of the procurement law, despite its amendment by the Finance Act, 2020.
Akume said the violations had contributed to inflated contract sums, restricted competition, exclusive arrangements for contractors and inadequate regulatory oversight.
He consequently directed all government-owned enterprises, corporations, councils, authorities and commissions that utilise public funds to ensure that their procurement activities comply with the law.
The SGF also instructed the heads of the affected institutions, who serve as accounting officers, to liaise with the Bureau of Public Procurement for guidance, warning that officials who continue to award contracts in violation of the Act would be sanctioned.
The circular stated that some federal government-owned enterprises and corporations continued to procure and award contracts without regard to the provisions of the Public Procurement Act.
It further identified contract prices above established benchmarks, restricted access to procurement opportunities and departures from approved guidelines as some of the irregularities undermining public procurement.
The directive places responsibility for compliance on accounting officers and requires them to ensure that the circular is brought to the attention of relevant officials for immediate implementation.
Under the Public Procurement Act, 2007, the Bureau of Public Procurement is responsible for regulating, monitoring and overseeing public procurement processes to promote transparency, competition and value for money.
Section 15, as amended by the Finance Act, 2020, extends the application of the law to federal government-owned enterprises, corporations, councils, authorities and commissions that utilise public funds.
The latest warning comes amid a series of government measures aimed at strengthening accountability and preventing the misuse of public resources.
In October 2026, the Federal Government introduced a mandatory 14-calendar-day standstill period between the announcement of an intended contract award and the finalisation of procurement contracts. The measure is designed to give unsuccessful bidders an opportunity to seek clarification or challenge procurement decisions before contracts are concluded.
The government has also adopted stricter guidelines under which contractors involved in fraud, corruption, falsification of documents or persistent failure to execute projects may be barred from participating in federal procurement for between three and five years.
In May 2026, the Bureau of Public Procurement introduced measures requiring ministries, departments and agencies to obtain its certification before processing upward revisions of contract sums, regardless of the amount involved.
The BPP said the reforms were intended to prevent contract variations from being exploited to inflate project costs.
Its Director-General, Dr. Adebowale Adedokun, disclosed in August 2026 that the government had saved about N1.4tn in 18 months through the bureau’s price intelligence and benchmarking initiatives.
The latest directive reinforces the government’s position that public institutions must adhere to procurement laws and ensure that public funds are spent transparently and in accordance with approved standards.