The Federal Government has vowed to crack down on inflated public contract awards and procurement violations across all Federal Government-owned enterprises, warning heads of agencies, parastatals, and commissions of strict sanctions for breaching established regulations.
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The directive was issued in a circular signed by the Secretary to the Government of the Federation (SGF), George Akume, and addressed to ministers, permanent secretaries, and chief executive officers of government agencies.
In the circular obtained on Monday, November 2, 2026, Akume raised the alarm over persistent contract awards that exceed approved price benchmarks, restrict open competition through exclusive contractor arrangements, and evade regulatory oversight.
The SGF expressed deep concern that several government-owned enterprises continue to bypass established procurement processes despite clear statutory provisions under Section 15 of the Public Procurement Act, 2007, as amended by the Finance Act, 2020.
Akume stated, emphasizing that accounting officers who fail to liaise with the Bureau of Public Procurement (BPP) or continue to award contracts in violation of the law will face severe sanctions.
The circular places the primary responsibility for compliance directly on accounting officers, directing all affected institutions to align all future procurement activities using public funds strictly with statutory guidelines.
Contractors found culpable of participating in fraudulent or inflated contract schemes also risk being barred from federal procurement for three to five years.
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