The federal government has directed ministries, departments and agencies (MDAs) not to award capital projects without first obtaining the required budgetary approvals and funding authorisation, as part of new operational guidelines for implementing the 2026 capital budget.
The directive is contained in the Treasury Circular on the Operational Guidelines for the Implementation of the 2026 Capital Budget issued by the Office of the Accountant-General of the Federation dated July 31, 2026.
The circular notes that it builds on an earlier directive, TRY A4 & B4/2024 of April 8, 2024, on the “Revised Policy on Cash Management and Bottom-Up Cash Plan Operational Guidelines,” and says the new guidelines have become necessary to strengthen and deepen implementation of that policy following observed non-compliance with the Public Procurement Act, 2007, and other extant laws and regulations.
Under the guidelines, MDAs are required to submit their annual cash plans for the 2026 capital budget, covering the period from July 1, 2026, in both hard and soft copies to the OAGF on or before July 31, 2026.
The first quarterly cash plan drawn from the annual cash plan is to be submitted alongside it. Subsequent quarterly cash plans must be submitted on or before the 15th day of the first month of each new quarter. MDAs are also required to prioritise projects and programmes in line with the federal government’s policy objectives, using the attached format.
The circular states that Warrants and Authority to Incur Expenditure will henceforth be issued to enable MDAs execute the 2026 capital budget or process payment of financial commitments on the Government Integrated Financial Management Information System platform.
In line with Financial Regulations 318 and 415, no expenditure may be incurred except on the authority of a Warrant/AIE, including employee payables, and no MDA is to issue letters of award, sign contracts, or enter into any financial obligations unless the corresponding Warrant/AIE covering the full or committed portion of the contract sum has been released by the Honourable Minister of Finance and Coordinating Minister of the Economy to the Accountant-General of the Federation.
MDAs are required to download and attach copies of Warrants/AIEs from the GIFMIS platform as evidence of funds availability for the award of contracts or processing of ongoing projects.
All MDAs must also ensure that financial commitments, covering purchase invoices and employee payables, are limited to uncommitted warrant balances, and that commitments do not at any time exceed available Warrants/AIEs.
The Bureau of Public Procurement (BPP) has been directed to process only requests for No Objection that are supported by valid Warrants/AIEs, a measure aimed at closing loopholes that previously allowed some projects to proceed without confirmed funding.
