The Federal Government has threatened to sanction heads of public institutions who approve inflated contracts or disregard procurement procedures in the award of government projects.
The Secretary to the Government of the Federation, George Akume, gave the warning in a circular directing accounting officers of federal agencies, corporations and other publicly funded institutions to observe the provisions of the Public Procurement Act, 2007.
The government expressed concern over the continued award of contracts at prices exceeding approved benchmarks, alongside practices that limit competition and weaken regulatory supervision of public projects.
Akume said the trend had contributed to unnecessary increases in contract costs and undermined transparency in the use of taxpayers' money, insisting that such violations would no longer be overlooked.
He consequently directed all federal government-owned enterprises, corporations, councils, authorities and commissions spending public funds to align their procurement activities with the existing legal framework.
The SGF further instructed heads of the affected institutions, in their capacity as accounting officers, to seek guidance from the Bureau of Public Procurement, warning that those who flout the directive would face appropriate penalties.
In the circular, Akume maintained that the government was determined to enforce accountability and ensure that public contracts deliver value for money.
He stated, “This non-compliance is unacceptable and will no longer be tolerated.”
The warning comes against the backdrop of broader government efforts to curb procurement abuses. In October 2026, the Federal Government introduced a mandatory 14-day waiting period before finalising contract awards to enable unsuccessful bidders to seek explanations or challenge procurement decisions.
Earlier, the Bureau of Public Procurement tightened the approval process for contract variations, making its certification compulsory before any upward adjustment to contract costs or changes to project specifications could be approved.
In August 2026, the Director-General of the BPP, Dr Adebowale Adedokun, said the government's price-monitoring and benchmarking reforms had helped save approximately N1.4tn within 18 months by identifying excessive project estimates and checking inflated bids.
