The Federal Government has rolled out a sweeping new directive barring Ministries, Departments and Agencies (MDAs) from awarding contracts or entering into financial commitments without first securing budgetary approval and cash backing.

The new policy, aimed at strengthening fiscal discipline and tackling the persistent problem of abandoned projects, was contained in a Federal Treasury Circular dated July 31, 2026, and signed by the Accountant-General of the Federation, Dr. Shamseldeen Ogunjimi.

SEE ALSO: Fake Agency DG Adeniyi Reveals How ₦1.3bn Found Its Way Into 2026 Budget

Addressed to ministers, permanent secretaries, heads of extra-ministerial departments and agencies, accounting officers and federal pay officers, the circular said the fresh operational guidelines became necessary following widespread violations of the Public Procurement Act, 2007, and other financial regulations governing public expenditure.

“Further to the Treasury Circular… captioned ‘Revised Policy on Cash Management and Bottom-Up Cash Plan Operational Guidelines,’ it has become necessary to strengthen and deepen the implementation of the policy sequel to the observed non-compliance with the Public Procurement Act, 2007, and other extant laws and regulations,” the circular stated.

It added, “To ensure full compliance and seamless implementation of the policy, the following operational guidelines for the implementation of the 2026 capital budgets are hereby issued.”

Under the new guidelines, no MDA is permitted to issue letters of award, sign contracts or incur financial obligations unless a Warrant or Authority to Incur Expenditure (AIE) covering the full or committed contract sum has been released by the Minister of Finance and Coordinating Minister of the Economy to the Accountant-General of the Federation.

The circular stated, “No expenditure shall be incurred except on the authority of a Warrant/AIE (including employee payables).

Accordingly, no MDA shall issue letters of award, sign contracts, or enter into any financial obligations unless the corresponding Warrant/AIE covering the full or committed portion of the contract sum has been duly released by the Honourable Minister of Finance and Coordinating Minister of the Economy to the Accountant-General of the Federation.”

To ensure compliance, the Office of the Accountant-General directed MDAs to attach copies of Warrants or AIEs generated through the Government Integrated Financial Management Information System (GIFMIS) as proof that funds are available before contracts are awarded or payments processed.

The circular also warned that financial commitments, including purchase invoices and employee payables, must never exceed available warrant balances.

“All MDAs shall ensure that financial commitments (purchase invoices and employee payables) are limited to uncommitted warrant balances; and at no time should financial commitments exceed the amount of Warrants/AIEs available,” it stated.

In another directive, the Bureau of Public Procurement was instructed to process only applications for “No Objection” certificates that are supported by valid Warrants or AIEs.

The Accountant-General further reminded accounting officers that awarding contracts without adequate funding is a violation of the law.

“Accounting Officers are invited to note that it is an offence under the ICPC Act 2000 to award or sign any contract without budgetary provision, approval and cash backing,” the circular warned.

To improve budget implementation, the Federal Government directed all MDAs to submit annual and quarterly cash plans for their capital budgets to the Office of the Accountant-General. It also instructed agencies to prioritise projects in line with government policy objectives, while the Cash Management Technical Committee will continue reviewing implementation plans and advising on priority projects.

The latest directive reinforces the Federal Government’s revised cash management policy introduced in 2024 and is expected to reduce abandoned projects, curb the accumulation of unpaid contractual liabilities and ensure that capital projects are executed only when sufficient budgetary provisions and cash backing are in place.

Federal civil servants have issued a stern warning to the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, demanding the immediate payment of outstanding wage awards and implementation of a long-awaited 40 per cent peculiar allowance or risk industrial action.

The Joint National Public Service Negotiating Council (JNPSNC) accused the Federal Government of failing to fulfil key welfare commitments to workers despite recent assurances that savings from the removal of fuel subsidy had been used to meet salary obligations.

SEE MORE: Tinubu Removes Wale Edun as Finance Minister, Appoints Oyedele

In a letter dated July 31, 2026, the council gave the minister until August 11, 2026, to meet with its leadership and resolve the lingering issues, warning that failure to do so could provoke what it described as the “wrath of Nigerian workers.”

The letter, jointly signed by National Chairman Benjamin Uyanto and National Secretary Olowoyo Gbenga (Trade Union Side), alleged that the minister ignored two previous correspondences seeking action on the unpaid entitlements.

According to the council, the first letter, dated May 5, 2026, requested the payment of two months’ outstanding wage awards to federal public servants, while the second, dated July 9, 2026, demanded both the payment of the arrears and the implementation of the 40 per cent peculiar allowance approved by the National Salaries, Income and Wages Commission.

The union expressed disappointment over what it described as the minister’s silence.

“To the surprise of the National leadership, none of the letters was responded to, let alone addressing the sensitive issues raised therein,” the letter stated.

The JNPSNC said the two unresolved issues requiring urgent government intervention are the implementation of the 40 per cent peculiar allowance, which was scheduled to take effect from May 1, 2026, and the payment of outstanding wage awards for March and April 2026.

The council requested an urgent meeting with the minister on or before August 11, 2026, at 10:00 a.m., either at his office or any venue convenient to him, expressing hope that the engagement would prevent a nationwide labour crisis.

“It is the expectation of the National leadership that this meeting will help to address the above stated critical and urgent outstanding issues in order to prevent palpable disquietedness and the brewing industrial crisis,” the letter read.

The union further accused the minister of deliberately delaying the payment of workers’ entitlements.

“The entire Public Servants have viewed the silence of the Honourable Minister of Finance, since his resumption as Minister of Finance, as a surreptitious way of compromising the necessary essence of directing the Accountant-General of the Federation to the effect of the full payment of two months outstanding Wage Award and the implementation of the circular on 40% peculiar allowance effective 1st May, 2026.”
It added:

“This request should be seen as a proactive approach from the National leadership to avert drastic actions from workers due to your insensitive silence to our two previous letters.”

The council disclosed that the Nigeria Labour Congress (NLC), the Trade Union Congress (TUC), and other relevant government officials had been notified of the development and the possibility of industrial action if the demands remain unresolved.

Saudi Arabia, Russia and five other key members of OPEC+ agreed in an online meeting Sunday to boost oil production by 188,000 barrels a day from September, against a backdrop of disruption caused by the Mideast war.

“The seven participating countries decided to implement a production adjustment of 188 thousand barrels per day,” they said in a joint statement.

The increase, decided by the key countries in the enlarged Organisation of the Petroleum Exporting Countries, was widely expected by analysts.

“OPEC+ has finished unwinding its voluntary cuts. The next challenge is managing the surplus that could emerge as export flows normalise,” said Jorge Leon, analyst at Rystad Energy.

He warned, however, that “today’s decision changes little in the near term because (the Strait of) Hormuz remains constrained. The real market impact will come when normal export flows resume.”

ALSO READ: Shell Bids Farewell to EVP Nigeria and Country Chair Marno, as Elohor Assumes Role

The Gulf countries have struggled to increase exports due to the near-paralysis of the Strait of Hormuz orchestrated by Iran during the war in the Middle East — despite a brief upswing in shipping traffic after a US-Iran memorandum of understanding was signed in June.

Many OPEC+ members cannot produce as much oil as their official targets allow due to a “decline in production capacity”, so increasing targets has become less meaningful, said Giovanni Staunovo, an analyst at UBS.

The September increase, agreed by OPEC+ countries Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, and Oman, completes the unwinding of the second of the three production-cut packages introduced by the organisation.

“Having completed the restoration campaign, OPEC+ has little incentive to rush into further supply changes. Our base case is a fourth-quarter pause while the group prepares for the 2027 quota negotiations,” said Rystad Energy’s Leon.

“For now, geopolitics is masking the scale of the supply increase. That will become much clearer once export flows normalise,” he said.

It remains unclear when the group will actually be able to increase its oil volumes. Some member countries, such as Iraq, have expressed a desire to significantly boost production.

Russia, though, is confronted with repeated Ukrainian drone attacks on its oil infrastructure that have crimped production, currently hovering around nine million barrels per day — compared with a target of 9.8 million barrels per day.

OPEC+ “faces potentially difficult talks over new production quotas” starting next year following the September increase, according to analysts at DNB Carnegie.

Between late 2022 and 2023, OPEC+ became concerned that oil prices were falling, and agreed to cut oil production in three separate rounds, reducing total output by nearly six million barrels per day.

But Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria, Oman and the United Arab Emirates — before the latter’s exit from the group on May 1 — then changed their strategy by gradually upping production starting in 2025.

“I don’t think cohesion is at risk at this very moment,” said Leon, warning, however, that the UAE’s withdrawal from the group in May has highlighted a weakness in this area.

Courtesy – AFP