FG's Akume Warns Officials Against Inflated Contracts

The Federal Government of Nigeria has issued a warning to heads of government-owned agencies, corporations, councils, authorities, and commissions regarding the awarding of inflated contracts and violations of public procurement regulations. This directive, issued by Secretary to the Government of the Federation George Akume, follows concerns about contracts exceeding approved price benchmarks, restricted competition, and inadequate regulatory oversight.

The circular, addressed to senior public officials, mandates strict compliance with the Public Procurement Act of 2007, as amended by the Finance Act of 2020. Akume expressed that many government-owned enterprises continue to award contracts without adhering to the law, leading to inflated costs and a lack of competition.

He emphasized that such non-compliance is unacceptable and will no longer be tolerated, directing institutions to ensure procurement activities align with the Act. Akume also instructed accounting officers to consult with the Bureau of Public Procurement for compliance guidance, warning that violations would result in sanctions.