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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This policy is part of the official guidelines for implementing the 2025 Appropriation Act. It aims to improve transparency, accountability, and traceability of public spending. By requiring GPS data, the government wants to ensure that projects are trackable and verifiable.

All MDAs are required to submit detailed monthly expenditure plans for the full year by July 31, 2025. These plans must be sent to both the Budget Office of the Federation and the Office of the Accountant-General of the Federation.

Projects that cost ₦150 million or more must include accurate GPS coordinates. The Director-General of the Budget Office must sign off on each plan to ensure alignment with national priorities.

The GPS requirement is part of a broader strategy to reduce duplicated, abandoned, or untraceable projects. It will support independent verification and enhance the effectiveness of Nigeria’s Bottom-Up Cash Management Strategy.

This new policy signals the government’s commitment to fiscal discipline, efficient project delivery, and accountable governance. At a time when public scrutiny of capital spending is growing, the use of GPS data adds an extra layer of confidence in how national resources are managed.

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