The Federal Government has announced plans to intensify enforcement against inflated public contracts and other procurement violations, warning heads of government institutions that breaches of procurement regulations could attract sanctions.
The warning was contained in a circular issued by the Secretary to the Government of the Federation (SGF), George Akume, directing accounting officers of Federal Government-owned enterprises and other public institutions to comply strictly with the Public Procurement Act, 2007.
The circular, reportedly obtained by journalists in Abuja, was addressed to ministers, permanent secretaries, heads of government agencies and parastatals, as well as other senior public officials.
Akume expressed concern that some government-owned enterprises and corporations continued to award contracts outside the provisions of the procurement law, despite amendments introduced through the Finance Act, 2020.
According to the SGF, such practices have contributed to inflated contract costs, limited competition among contractors and weakened regulatory supervision.
He warned that the government would no longer tolerate procurement activities that disregard established rules and procedures.
Government targets procurement irregularities
The circular identified several practices of concern, including awarding contracts above approved price benchmarks, using exclusive arrangements that restrict competition and carrying out procurement activities in ways that undermine regulatory oversight.
Akume consequently directed all government-owned enterprises, corporations, councils, authorities and commissions that utilise public funds to ensure that their procurement processes comply with the Public Procurement Act.
The directive places responsibility on accounting officers and institutional leadership to ensure that public procurement is conducted transparently and in accordance with the law.
The Federal Government’s position signals a renewed focus on contract pricing, competition and accountability in the management of public resources.
