The Federal Government has vowed to take tougher action against inflated public contracts and procurement violations, warning heads of government-owned agencies and other public institutions that they risk sanctions for failing to comply with procurement regulations.
The government raised concerns over the continued award of contracts above approved price benchmarks, restricted competition through exclusive arrangements with contractors and inadequate regulatory oversight.
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 strictly comply with the Public Procurement Act, 2007, as amended.
The circular, obtained by The PUNCH in Abuja, was addressed to ministers, permanent secretaries, heads of government agencies and parastatals, among other senior public officials.
Akume expressed concern that some government-owned enterprises and corporations continued to award contracts without complying with the provisions of the procurement law, despite its amendment through the Finance Act, 2020.
According to the SGF, the practice had contributed to inflated contract sums, restricted competition and weakened regulatory oversight.
He warned that the government would no longer tolerate such violations, stressing that institutions found disregarding procurement regulations would face appropriate consequences.
The circular stated that contracts exceeding established pricing benchmarks, exclusive arrangements that create captive markets for contractors and departures from approved guidelines were among the procurement irregularities identified by the government.
Akume consequently directed all Federal Government-owned enterprises, corporations, councils, authorities and commissions that utilise public funds to ensure that their procurement activities comply with the Public Procurement Act.
He also instructed the heads of the affected institutions, who serve as accounting officers, to liaise with the Bureau of Public Procurement for guidance on implementing the regulations.
The SGF warned that any accounting officer who continued to award contracts without following the provisions of the law would be sanctioned.
The directive further ordered that the circular be brought to the attention of all accounting officers for immediate and strict compliance.
Under the Public Procurement Act, 2007, the Bureau of Public Procurement is responsible for regulating and monitoring public procurement activities, setting standards and promoting transparency and competition in government contracts.
Section 15 of the Act, as amended by the Finance Act, 2020, extended its application to Federal Government-owned enterprises, corporations, councils, authorities and commissions that 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 comes amid broader efforts by the government to strengthen procurement controls and prevent contract inflation.
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 intended to give unsuccessful bidders an opportunity to seek clarification or lodge complaints before contracts are concluded.
The government has also introduced guidelines allowing contractors found guilty of fraud, corruption, falsification of documents or persistent failure to execute public contracts to be barred from federal procurement for between three and five years.
The latest warning reinforces the government’s position that public institutions must ensure transparency, accountability and value for money in the use of public funds.
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