morganable politics/Governance
According to the SGF, the government was particularly concerned about contracts awarded above established pricing benchmarks and institutions departing from approved procurement guidelines.
KaNo—
The Federal Government has warned heads of government-owned agencies, corporations, councils, authorities and commissions against awarding inflated public contracts and violating procurement regulations, threatening sanctions for officials who disregard the law.
The government said it would no longer tolerate procurement practices that undermine transparency, restrict competition, inflate contract costs and weaken regulatory oversight in the management of public funds.
The Secretary to the Government of the Federation, George Akume, issued the warning in a circular directing accounting officers of federal government-owned enterprises and other public institutions to comply strictly with the Public Procurement Act, 2007, as amended by the Finance Act, 2020.
The circular, obtained by our correspondent 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 several government-owned enterprises and corporations continued to award contracts without complying with the provisions of the procurement law, despite the amendment introduced through the Finance Act, 2020.
He said the practice had contributed to inflated contract prices, restricted competition, the emergence of exclusive arrangements for contractors and inadequate regulatory oversight.
According to the SGF, the government was particularly concerned about contracts awarded above established pricing benchmarks and institutions departing from approved procurement guidelines.
The circular stated, “It has come to the attention of the Federal Government that despite the provisions of Section 15 of the Public Procurement Act, 2007, as amended by the Finance Act, 2020, several Federal Government Owned Enterprises and Corporations continue to procure and award contracts without recourse to the provisions of the Public Procurement Act, 2007.”
Akume said such violations had created opportunities for procurement irregularities and undermined the principles of accountability and value for money in public expenditure.
“This practice has resulted in contract sums that are above established pricing benchmarks, captive markets for exclusive contractors, significant departure from approved guidelines and absence of critical regulatory oversight, amongst other lapses,” the circular added.
He described the continued disregard for procurement regulations as unacceptable, warning that the government would take action against institutions and officials found violating the law.
“This non-compliance is unacceptable and will no longer be tolerated,” he said.
Consequently, the SGF directed all federal government-owned enterprises, corporations, councils, authorities and commissions that utilise public funds to ensure that their procurement activities are conducted in accordance with the Public Procurement Act.
The directive is aimed at strengthening transparency, accountability and value for money in the award and implementation of government contracts.
The circular stated, “Therefore, to ensure that the core principles of transparency, accountability and value for money are achieved, all Federal Government Owned Enterprises, Corporations, Councils, Authorities and Commissions are accordingly directed to ensure that their procurements are implemented in line with the Public Procurement Act, 2007, provided they utilise public funds.”
The government also placed responsibility for compliance on the heads of the affected institutions, who serve as accounting officers.
Akume instructed the officials to liaise with the Bureau of Public Procurement for guidance on implementing the provisions of the procurement law.
He warned that accounting officers who continued to award contracts without following the prescribed procedures would face sanctions.
The circular stated, “The Heads of Enterprises, Corporations, Councils, Authorities and Commissions, who are also the Accounting Officers, are hereby directed to liaise with the Bureau of Public Procurement for further guidance, as any Accounting Officer who contravenes this directive and continues to award contracts without recourse to the provisions of the Public Procurement Act, 2007, shall be sanctioned accordingly.”
The SGF further directed that the circular be brought to the attention of all accounting officers for immediate implementation and strict compliance.
“The content of this Circular should be brought to the attention of all Accounting Officers for immediate and strict compliance,” he said.
Among the officials and institutions copied on the circular were the Chief of Staff to the President, Deputy Chief of Staff to the President, Principal Secretary to the President, Head of the Civil Service of the Federation and all ministers and ministers of state.
Others included the National Security Adviser, Economic Adviser to the President, special advisers and senior special assistants, Chief of Defence Staff, service chiefs, Inspector-General of Police and Governor of the Central Bank of Nigeria.
The directive was also circulated to the chairmen of several federal commissions and regulatory institutions, including the Federal Civil Service Commission, Police Service Commission, Code of Conduct Bureau, Code of Conduct Tribunal, Federal Character Commission, Revenue Mobilisation, Allocation and Fiscal Commission, Federal Inland Revenue Service and Independent National Electoral Commission.
Also listed were the National Population Commission, Independent Corrupt Practices and Other Related Offences Commission, Economic and Financial Crimes Commission and National Drug Law Enforcement Agency.
Other recipients included permanent secretaries, heads of extra-ministerial departments, the Clerk of the National Assembly, Chief Registrar of the Supreme Court, Accountant-General of the Federation, Auditor-General for the Federation and directors-general and chief executives of government agencies, parastatals and government-owned companies.
The directive is anchored on the Public Procurement Act, 2007, which established the Bureau of Public Procurement as the regulatory authority responsible for monitoring and overseeing public procurement activities.
The bureau is mandated to set standards, regulate procurement procedures and ensure that government contracts are awarded through transparent, competitive and accountable processes.
Section 15 of the Act, as amended by the Finance Act, 2020, expanded its application to cover federal government-owned enterprises, corporations, councils, authorities and commissions, provided they utilise public funds.
The amendment reinforced the obligation of government institutions outside conventional ministries and departments to comply with procurement regulations when spending public resources.
Meanwhile, Section 20 of the Public Procurement Act outlines the responsibilities of accounting officers in ensuring compliance with procurement requirements.
The provision places responsibility on accounting officers, including permanent secretaries and heads of government agencies and corporations, to supervise procurement processes and ensure that their institutions adhere to the law.
With the latest directive, the Federal Government has reiterated that heads of public institutions cannot disregard procurement regulations when awarding contracts, warning that officials who fail to comply with the law will be held accountable.
The government maintained that strict adherence to procurement procedures remains essential to preventing inflated contract costs, promoting competition and ensuring that public resources are utilised for their intended purposes.
