FG Bars MDAs From Issuing Contract Award Letters Without AIEs

The Federal Government has instructed Ministries, Departments, and Agencies (MDAs) to cease issuing contract award letters without the necessary Authority to Incur Expenditure (AIE). This directive, announced by the Minister of Finance, aims to enhance transparency and accountability in the execution of the 2025 capital budget.

The AIE serves as proof of available funds and ensures prompt payment to beneficiaries upon project completion. The Minister emphasized that the new policy will make the payment process more rigorous and transparent, preventing unauthorized spending and ensuring that government resources are channeled towards priority projects.

While existing contracts will still be funded through the current procedure, all future transactions must comply with the new directive to avoid breaching financial regulations. Stakeholders have been urged to adhere to the new guidelines to avoid any financial irregularities.