The Federal Government has announced a new directive prohibiting any Ministry, Department, or Agency (MDA) from issuing contract award letters without first obtaining a warrant or an Authority to Incur Expenditure (AIE) from the Minister of Finance.

The move is aimed at tightening control over public spending, ensuring that all contract awards are backed by approved budgetary provisions before commitments are made. This measure is also expected to curb financial indiscipline and prevent the accumulation of unpaid liabilities by MDAs.

According to the government, the policy takes immediate effect and will be strictly enforced across all arms of the federal administration. Any violation of the directive will attract sanctions in line with existing financial regulations.