FG vows crackdown on inflated public contracts
AI Executive Briefing
Verified Synthesis~120s readThe Federal Government has vowed to crack down on inflated public contracts and procurement violations, warning heads of government-owned agencies, corporations, councils, authorities and commissions that they risk sanctions for breaching procurement regulations. The Secretary to the Government of the Federation, George Akume, issued the warning in a circular directing accounting officers of Federal Government-owned enterprises and other public institutions to comply strictly with the Public Procurement Act, 2007, or face penalties.
Context & Background
- ✦Consequently, the SGF directed all federal government-owned enterprises, corporations, councils, authorities and commissions that utilise public funds to ensure that their procurement activities comply with the Public Procurement Act.
Key Figures & Named Entities
2020:Akume expressed concern that several government-owned enterprises and corporations continued to award contracts in violation of the procurement law, despite its amendment by the Finance Act, 2020.2020:The circular stated, “It has come to the attention of the Federal Government that despite the provisions of Section 15 of the Public Procurement Act, 2007, as amended by the Finance Act, 2020, several Federal Government Owned Enterprises and Corporations continue to procure and award contracts without recourse to the provisions of the Public Procurement Act, 2007.” According to the SGF, the practice had contributed to inflated contract prices, restricted competition and inadequate regulatory oversight in public procurement.2020:Section 15 of the Act, as amended by the Finance Act, 2020, expanded its application to include federal government-owned enterprises, corporations, councils, authorities and commissions, provided they utilise public funds.
Outlook & Next Steps
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Key Takeaways
Verified Extract- The Federal Government has vowed to crack down on inflated public contracts and procurement violations, warning heads of government-owned agencies, corporations, councils, authorities and commissions that they risk sanctions for breaching procurement regulations.
- The Secretary to the Government of the Federation, George Akume, issued the warning in a circular directing accounting officers of Federal Government-owned enterprises and other public institutions to comply strictly with the Public Procurement Act, 2007, or face penalties.
- Consequently, the SGF directed all federal government-owned enterprises, corporations, councils, authorities and commissions that utilise public funds to ensure that their procurement activities comply with the Public Procurement Act.
Key Facts:2020: Akume expressed concern that several government-owned enterprises and corporations continued to award contracts in violation of the procurement law, despite its amendment by the Finance Act, 2020.2020: The circular stated, “It has come to the attention of the Federal Government that despite the provisions of Section 15 of the Public Procurement Act, 2007, as amended by the Finance Act, 2020, several Federal Government Owned Enterprises and Corporations continue to procure and award contracts without recourse to the provisions of the Public Procurement Act, 2007.” According to the SGF, the practice had contributed to inflated contract prices, restricted competition and inadequate regulatory oversight in public procurement.2020: Section 15 of the Act, as amended by the Finance Act, 2020, expanded its application to include federal government-owned enterprises, corporations, councils, authorities and commissions, provided they utilise public funds.2025: In October 2025, the Federal Executive Council directed the strict application of the Public Procurement Act across federal institutions following its meeting of August 13, 2025.
Editorial Excerpt
The Federal Government has vowed to crack down on inflated public contracts and procurement violations, warning heads of government-owned agencies,
Frequently Asked Questions About This Story
What is the latest development regarding Federal Capital Territory?
The Federal Government has vowed to crack down on inflated public contracts and procurement violations, warning heads of government-owned agencies, corporations, councils, authorities and commissions that they risk sanctions for breaching procurement regulations.
Who are the key organizations or public figures mentioned?
The primary parties identified in this coverage include Federal Capital Territory, National Assembly of Nigeria, Lagos State.
What timeline or key figures were confirmed?
Akume expressed concern that several government-owned enterprises and corporations continued to award contracts in violation of the procurement law, despite its amendment by the Finance Act, 2020.
