The Federal Government has threatened sanctions against heads of publicly funded institutions who violate procurement regulations, warning that accounting officers will be held responsible for contracts awarded outside established legal procedures.
The Secretary to the Government of the Federation (SGF), George Akume, issued the directive in a circular mandating government-owned enterprises, corporations, councils, authorities and commissions to comply with the Public Procurement Act, 2007, as amended by the Finance Act, 2020.
Akume expressed concern over persistent procurement breaches, particularly inflated contract costs, arrangements that restrict competition and disregard for approved procurement procedures.
He directed all affected institutions that utilise public funds to align their procurement activities with the law and consult the Bureau of Public Procurement (BPP) for implementation guidance.
The SGF warned that accounting officers who continued to approve contracts in violation of the Act would face sanctions. He also ordered the immediate circulation of the directive among all affected officials.
Section 15 of the amended Act extends its provisions to government-owned enterprises, corporations, councils, authorities and commissions that utilise public funds, while Section 20 assigns accounting officers responsibility for ensuring procurement compliance.
The latest directive follows a series of government measures aimed at curbing contract inflation and strengthening oversight of public expenditure.
In August 2025, the Federal Executive Council (FEC), at a meeting presided over by President Bola Tinubu on August 13, directed federal institutions to submit details of ongoing projects to the BPP for scrutiny.
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In December 2025, the council approved a revised framework for contract variations and the mandatory use of final project designs. Implementation guidelines issued by the BPP in May 2026 require government institutions to obtain the bureau’s certification before processing contract variations, fluctuation claims or changes to approved project scopes, regardless of their value.
The guidelines replaced the 2013 framework, which required presidential approval for variations exceeding 15 per cent of the original contract sum or N1bn. Unauthorised adjustments could attract sanctions, including the suspension of responsible officers and possible debarment of contractors.
The government also introduced a mandatory 14-calendar-day standstill period between notification of an intended contract award and execution of the agreement.
Contained in a circular signed by Akume on August 6, 2026, and publicly explained by the BPP on October 22, the requirement gives unsuccessful bidders time to seek clarification, request debriefing or challenge procurement decisions before contracts are finalised.
Separately, the National Guideline on Debarment of Contractors, Consultants and Service Providers provides for the exclusion of contractors implicated in fraud, corruption, document falsification and persistent failure to execute public contracts. Offenders may be barred from federal procurement for three to five years.
Meanwhile, BPP Director-General, Dr Adebowale Adedokun, disclosed in August 2026 that procurement reforms had reportedly saved the Federal Government approximately N1.5tn within 18 months through price intelligence and benchmarking.
The initiative enables the bureau to scrutinise proposed project costs against established pricing standards to identify excessive estimates before contracts are approved.
Akume’s latest warning reinforces the government’s drive to tighten procurement oversight and hold public officials accountable for how government contracts are awarded and public funds spent.