The Federal Government has directed all Ministries, Departments, and Agencies (MDAs) to stop awarding contracts for projects that do not have secured funding, in a move aimed at reducing the growing number of abandoned public projects across the country. The policy is expected to strengthen fiscal discipline, improve project execution, and ensure better value for public spending.
The directive was announced by the Bureau of Public Procurement (BPP), which said government agencies must confirm the availability of funds before initiating procurement processes or awarding new contracts. According to the agency, the measure is intended to prevent projects from being abandoned due to inadequate budgetary provisions or funding gaps.
The BPP noted that many government projects have remained uncompleted for years because contracts were awarded without sufficient financial backing. This has resulted in cost overruns, delayed infrastructure delivery, and significant losses to the government, while depriving citizens of essential public services.
Under the new policy, MDAs are required to align project awards with approved budget allocations and verified funding sources. The procurement regulator said stricter compliance with the Public Procurement Act will improve transparency, accountability, and efficiency in public project implementation.
The government also emphasised that the policy forms part of broader reforms to improve capital project delivery, eliminate wasteful spending, and restore public confidence in infrastructure development. By ensuring that only financially backed projects are approved, authorities expect to reduce abandoned projects and accelerate the completion of critical infrastructure nationwide.
Industry stakeholders have welcomed the initiative, noting that stronger procurement discipline will improve investor confidence, enhance budget implementation, and ensure that public resources are channelled into projects with realistic funding plans and measurable economic impact.
