The Nigerian Federal Government has moved to prohibit ministries, departments, and agencies from awarding contracts or signing financial commitments without explicit budgetary provision and cash backing.
The Treasury issued the warning, stating that such actions constitute an offense under the Independent Corrupt Practices and Other Related Offences Commission (ICPC) Act.
This directive aims to curb the accumulation of off-budget liabilities that have historically strained public finances and undermined fiscal discipline.
The move represents a significant tightening of fiscal controls within the federal bureaucracy.
By linking contract awards directly to available cash reserves, the government seeks to prevent agencies from creating future payment obligations that exceed current revenue streams.
This policy shift is expected to slow the pace of new government spending in the short term, as agencies must secure confirmed funding before initiating procurement processes.