The Nigerian Federal Government has issued a directive prohibiting Ministries, Departments, and Agencies (MDAs) from awarding contracts or entering into financial commitments without prior budgetary approval.
The move aims to address a growing backlog of abandoned projects and enforce stricter fiscal discipline across the public sector.
The ban specifically targets the practice of initiating projects without secured funding, a recurring issue that has led to significant waste and stalled infrastructure development.
By mandating that all financial commitments be backed by approved budgets, the government seeks to prevent further accumulation of unfunded liabilities.
This policy shift reflects broader efforts to improve public financial management and ensure that government spending aligns with available resources.
The directive is expected to impact ongoing procurement processes and may lead to a temporary slowdown in new project launches as agencies comply with the new requirements.