FG Moves To End Unfunded Contract Awards, Tighten Procurement System

The federal government has directed that no new public contracts should be awarded without confirmed funding, in a sweeping reform aimed at improving project delivery, reducing contractor debts, and strengthening Nigeria’s procurement system.
The director-general of the Bureau of Public Procurement (BPP), Dr Adebowale Adedokun, disclosed this in Abuja on the sidelines of the inaugural hosting of “The Procurement Evolution,” saying the policy has already received presidential backing.
Adedokun said President Bola Tinubu had approved measures to raise funds to clear outstanding debts owed to contractors, stressing that timely payment remains central to an efficient procurement framework.
“Mr President has given a directive on when funds should be raised to address the concerns of contractors who are yet to be paid.
“With this, procurement processes will be much better because payment is now tied to procurement. Meaning that no award will be further issued without resources or funding available,” he said.
He explained that the reform is part of a broader government push to eliminate abandoned projects and improve accountability in public spending.
According to him, the federal government is currently implementing 23 procurement reform initiatives designed to enhance transparency, efficiency, and value for money across Ministries, Departments and Agencies (MDAs).
Adedokun said committees to drive the reforms will soon be inaugurated by the Secretary to the Government of the Federation (SGF), adding that the goal is to ensure Nigerians begin to feel the impact of government spending through better infrastructure and services.
“The president wants Nigerians to feel the effects of this transformation by having good roads, good hospitals, good educational institutions, and a good living wage for all workers,” he said.
Earlier, the Secretary to the Government of the Federation (SGF), Senator George Akume, said procurement reforms remain central to the Tinubu administration’s Renewed Hope Agenda.
Represented by the permanent secretary, General Services Office, Dr Abubakar Kana, Akume said ongoing initiatives include amendments to the Public Procurement Act, the Nigeria First Policy, the Nigeria e-Marketplace initiative, and community-based procurement frameworks.
He said the reforms are designed to strengthen local industries, improve transparency, and leverage technology to enhance service delivery.
“As we move forward, our collective responsibility is very clear. We must ensure that procurement processes are simplified without compromising accountability.
“The federal government remains fully committed to supporting the Bureau of Public Procurement in driving these reforms and ensuring that public procurement becomes a catalyst for economic growth, infrastructure development and improved quality of life for all our citizens,” he said.