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.

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The Senate has renewed its call for transparency and strict adherence to due process in Nigeria’s public procurement system, insisting that every government expenditure must yield measurable results.

Chairman of the Senate Committee on Public Procurement, Senator Olajide Ipinsagba (Ondo North), made this known at a two-day retreat for committee members in Abuja.

He said public procurement is central to translating government policies into real development outcomes and must therefore uphold the highest standards of integrity and accountability.

While acknowledging progress made through the Public Procurement Act 2007 and the Bureau of Public Procurement, Ipinsagba said deeper reforms were needed to strengthen compliance and efficiency.

He urged stakeholders to align Nigeria’s procurement practices with global standards and President Bola Tinubu’s Renewed Hope agenda.

Earlier, Barrister Kelechi Kingsley, CEO of Leadbold Resource Consulting Ltd, said the retreat was designed to enhance the committee’s capacity in oversight and ensure value for money in public spending.

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