csrreporters 
The Federal Government has tightened control over capital budget spending for 2025, directing that no Ministry, Department, or Agency (MDA) may issue contract award letters without prior approval from the Minister of Finance.
Under the new rules, all contracts must be supported by a warrant or Authority to Incur Expenditure (AIE) issued by the finance minister, serving as official confirmation of available funds before any financial commitment is made.
Finance and Coordinating Minister of the Economy, Wale Edun, announced the directive at a stakeholder engagement meeting in Abuja. He said the move is aimed at ensuring that government funds are channelled only to priority projects while strengthening transparency, accountability, and efficiency in capital budget implementation.
The minister explained that the measure aligns with the government’s cash management and bottom-up cash planning strategy. He added that contractors will now be paid directly and immediately upon project completion, eliminating delays and intermediaries.
Nigeria’s Accountant-General, Shamsudeen Ogunjimi, reinforced the policy, warning that no MDA shall sign contracts or make commitments without the required warrant from the finance minister. “Funds will continue to be disbursed centrally from the Treasury to beneficiaries, including contractors and employees, to ensure transparency,” he said.
The Bureau of Public Procurement (BPP) has also declared it will no longer certify projects awarded without valid warrants. Its Director-General, Adebowale Adedokun, stressed that only properly planned and approved projects will receive certification, with priority given to SMEs under the “Nigerian First” policy.
Meanwhile, the Debt Management Office (DMO) is tasked with sourcing funds to finance the capital component of the N54.99 trillion 2025 budget, which has a N14.1 trillion capital provision and a N15 trillion deficit. Nigeria’s total public debt stood at N149.39 trillion in Q1 2025.