Federal Government Warns Agencies Against Inflated Contracts

The Federal Government has issued a warning to heads of government agencies, corporations, commissions, and other publicly funded institutions regarding the awarding of inflated contracts. Secretary to the Government of the Federation, George Akume, emphasized that the government will impose sanctions on officials who violate procurement regulations.

The circular directed accounting officers to ensure compliance with the Public Procurement Act, 2007, as amended by the Finance Act, 2020. Akume expressed concern over the continued disregard for procurement laws, which has led to excessive contract costs and limited competition.

He noted that some institutions have allowed contractors to benefit from inflated prices while excluding other qualified companies. The circular highlighted that violations have persisted despite the legal framework intended to promote accountability in government spending.

Akume warned that non-compliance would no longer be tolerated and directed all Federal Government-owned entities to adhere strictly to the procurement regulations.