ABUJA — The Office of the Accountant-General of the Federation (OAGF) has issued new operational guidelines for the implementation of the Federal Government’s 2026 capital budgets, directing Ministries, Departments and Agencies (MDAs) to strengthen cash management and ensure strict compliance with procurement and financial regulations.
The directive is contained in a Federal Treasury Circular dated 31 July 2026, signed by the Accountant-General of the Federation, Shamseldeen B. Ogunjimi, PhD, FCA, FCTI, FCS, CFE, MCS, and addressed to federal ministries, departments, agencies and other government institutions.
According to the circular, the new guidelines are aimed at strengthening the implementation of the Federal Government’s cash management policy following observed cases of non-compliance with the Public Procurement Act, 2007, and other extant laws and regulations.
Under the new requirements, MDAs are to submit their 2026 annual capital budget cash plans to the OAGF in both hard and soft copies. The first quarterly cash plan, drawn from the annual plan, is also required to be submitted alongside it.
Thereafter, MDAs are expected to submit their quarterly cash plans on or before the 15th day of the first month of the succeeding quarter. The circular further directs MDAs to prioritise projects and programmes in line with the Federal Government’s policy objectives and approved priorities.
A major provision of the new guidelines is the stricter requirement for Warrants or Authority to Incur Expenditure (AIE) before government agencies can undertake capital expenditure or process related financial commitments through the Government Integrated Financial Management Information System (GIFMIS).
The circular states that, in accordance with Financial Regulations 318 and 415, no expenditure should be incurred without the authority of a duly issued Warrant or AIE. Consequently, MDAs are prohibited from issuing letters of award, signing contracts or entering into 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 also required to download and attach copies of their Warrants/AIEs from the GIFMIS platform as evidence of fund availability when awarding contracts or processing payments for ongoing projects.
The circular further directs agencies to ensure that financial commitments, including purchase invoices and employee payables, remain within the available uncommitted warrant balance. It specifically warns that financial commitments must not exceed the amount covered by available Warrants/AIEs.
The Bureau of Public Procurement (BPP) has also been directed to ensure that requests for No Objection are processed only when supported by the appropriate Warrants/AIEs.
The OAGF additionally reminded Accounting Officers that awarding or signing contracts without budgetary provision, approval and cash backing constitutes an offence under the ICPC Act 2000.
The circular said the Cash Management Technical Committee would continue to review the budget implementation plan and advise the Federal Cash Management Committee on implementation priorities and projects.
It placed responsibility for effective cash management on Accounting Officers and Directors or Heads of Finance and Accounts, requiring them to prioritise projects and programmes based on available Warrants/AIEs.
The Accountant-General called on all Accounting Officers, Chief Executives, Directors and Heads of Finance, Accounts and Internal Audit units to ensure the widest circulation of the circular and full compliance with its provisions.