Heads of federal government-owned institutions could face disciplinary action for failing to follow procurement laws, as the Federal Government moves to tighten control over how public contracts are awarded and managed.

The warning targets government agencies and corporations accused of bypassing established procurement procedures, with particular concern over projects awarded at excessive costs and arrangements that prevent other qualified contractors from competing.

Secretary to the Government of the Federation, George Akume, communicated the government’s position in a fresh directive to public officials, making compliance with the Public Procurement Act, 2007, compulsory for institutions spending government funds.

The circular, addressed to ministers, permanent secretaries, heads of departments and chief executives of federal agencies, indicates that the government is concerned about continued disregard for procurement regulations, particularly among government-owned enterprises.

Akume noted that the problem had persisted despite changes to the procurement law introduced through the Finance Act, 2020.

He identified several consequences of the violations, including contracts priced above recognised market benchmarks, procurement arrangements that favour selected contractors and decisions taken without adequate supervision from the relevant regulatory authority.

The SGF warned that institutions could no longer operate outside the established framework and directed them to bring their procurement activities in line with the law.

A major aspect of the new directive is the responsibility assigned to accounting officers. These are the officials heading the affected institutions and are expected to supervise their financial and administrative operations.

Rather than treating procurement compliance as the responsibility of technical departments alone, the government has made it clear that the heads of these organisations could personally face consequences when contracts are awarded in violation of the law.

Akume consequently instructed the accounting officers to seek clarification and guidance from the Bureau of Public Procurement (BPP) to ensure that their institutions follow the required procedures.

He also ordered that the circular be distributed among all relevant officers for immediate implementation.

The directive covers federal government-owned enterprises, corporations, councils, authorities and commissions, provided they utilise public funds.

Its distribution list extends across the Presidency, ministries, security institutions, regulatory bodies and other major government establishments. Among those notified are the National Security Adviser, service chiefs, Inspector-General of Police, Central Bank of Nigeria Governor, Independent National Electoral Commission, Economic and Financial Crimes Commission and Independent Corrupt Practices and Other Related Offences Commission.

Other recipients include the National Assembly, Judiciary, Accountant-General of the Federation, Auditor-General for the Federation and chief executives of government agencies and parastatals.

WHY THE GOVERNMENT IS STRENGTHENING PROCUREMENT OVERSIGHT

The Public Procurement Act provides the legal framework for the acquisition of goods, services and construction works by federal institutions. It also established the BPP to regulate procurement activities and promote transparency, competition and accountability in the use of public resources.

The 2020 amendment extended the law’s coverage to government-owned enterprises and other specified institutions outside the conventional ministries and departments, where public funds are involved.

Under Section 20, accounting officers are responsible for ensuring that procurement activities within their organisations comply with the legislation.

The latest directive therefore reinforces an existing legal obligation rather than introducing an entirely new requirement. Its immediate concern is the government’s position that some institutions have continued to disregard those provisions.

NEW RULES TARGET CONTRACT COST INCREASES

The warning comes as the BPP intensifies efforts to prevent public projects from becoming more expensive through unjustified contract adjustments.

In May 2026, the bureau introduced a revised framework requiring government ministries, departments and agencies to submit requests for contract variations, price adjustments and changes to project specifications for regulatory assessment before seeking final approval.

The policy, approved by the Federal Executive Council, also made the use of approved final project designs compulsory to reduce unnecessary changes after contracts have been awarded.

Under the arrangement, a contractor or government institution cannot simply increase an approved project cost without obtaining the necessary certification from the BPP.

The revised framework replaced the previous 2013 guidelines, which required presidential approval for contract variations exceeding 15 per cent of the original contract value or N1bn.

The new rules also distinguish between legitimate reasons for adjusting a contract and changes that could have been avoided through proper planning.

Unforeseen conditions at project sites, significant design errors and certain statutory or economic changes may justify adjustments. However, additional work arising from poor planning or the introduction of entirely new components outside the original agreement must be handled through separate procurement processes.

The BPP has warned that unauthorised contract modifications could attract penalties for responsible public officers, while contractors involved in violations could also face debarment.

The Guardian reported on May 17, 2026, that the reforms were designed to strengthen regulatory control over contract adjustments and prevent arbitrary increases in the cost of government projects.

CONTRACTORS FACE LONGER EXCLUSION FOR VIOLATIONS

The government has also moved to strengthen its response to contractors who engage in fraudulent practices or repeatedly fail to deliver projects.

In October 2026, the Federal Ministry of Information and National Orientation announced that contractors found responsible for fraud, corruption, falsification of documents or persistent failure to execute public contracts could be excluded from future federal procurement exercises for between three and five years.

The measure is contained in the National Guideline on Debarment of Contractors, Consultants and Service Providers, which the government has directed accounting officers to enforce.

This adds another layer of accountability to the procurement system by extending the consequences of misconduct beyond the immediate contract involved.

FG INTRODUCES 14-DAY WAITING PERIOD FOR CONTRACT AWARDS

Another significant change came in October 2026, when the government directed federal procuring institutions to observe a mandatory 14-calendar-day interval before completing contract awards.

The Federal Ministry of Information and National Orientation confirmed that the directive was contained in a circular signed by Akume on August 6, 2026.

Under the arrangement, institutions must notify all participating bidders once an intended contract winner has been approved. The unsuccessful bidders must then be given 14 calendar days to seek explanations, request a review or submit complaints before the agreement is finalised.

The government said the waiting period would provide an opportunity to address objections before contracts become legally effective.

The BPP warned that institutions that ignore the requirement could also face administrative sanctions.

BPP CLAIMS ₦1.4TN SAVINGS FROM PRICE CHECKS

The procurement reforms have also been accompanied by claims of substantial savings through the government’s price-monitoring system.

In August 2026, BPP Director-General, Dr Adebowale Adedokun, disclosed that the Federal Government had saved approximately ₦1.4tn over 18 months through price intelligence and benchmarking exercises.

He made the disclosure during a media engagement at a procurement capacity-building programme organised for senior officials of the Nigeria Deposit Insurance Corporation in Lagos.

Adedokun explained that the bureau now examines project estimates submitted by government institutions against recognised pricing standards before procurement approvals are granted.

He said the process helps identify unrealistic cost projections and encourages contractors to submit more competitive quotations.

The BPP had also reported that its reviews between January and September 2025 helped prevent excessive contract costs amounting to more than ₦303bn, $304.9m and €1.74m.

These savings figures were disclosed by the bureau and reflect its own assessment of the financial impact of its procurement reviews.

With the latest directive, the Federal Government is placing greater responsibility on the officials who approve and supervise public spending, while expanding the role of the BPP in monitoring how government contracts are awarded.

The effectiveness of the measures will ultimately depend on how consistently the regulations are enforced across the institutions expected to comply.

Sources: The PUNCH; Federal Ministry of Information and National Orientation; Bureau of Public Procurement; The Guardian; News Agency of Nigeria.