The Federal Government has warned heads of government-owned agencies, corporations, councils, authorities and commissions against inflated contract awards and violations of public procurement regulations, threatening sanctions for offenders.

The warning was contained in a circular issued by the Secretary to the Government of the Federation, George Akume, directing accounting officers of government institutions to strictly comply with the Public Procurement Act, 2007, as amended by the Finance Act, 2020.

The circular, obtained by newsmen in Abuja, was addressed to ministers, permanent secretaries, heads of government agencies and parastatals, among other senior public officials.

Akume expressed concern that several government-owned enterprises and corporations continued to award contracts without adhering to the provisions of the procurement law.

He said the practice had contributed to inflated contract costs, restricted competition through exclusive arrangements for contractors and weakened regulatory oversight.

According to the SGF, some contracts were being awarded at prices above established benchmarks, while certain institutions disregarded approved procurement guidelines.

He consequently directed all government-owned enterprises, corporations, councils, authorities and commissions utilising public funds to ensure that their procurement processes comply fully with the law.

The accounting officers were also instructed to liaise with the Bureau of Public Procurement for guidance and ensure immediate circulation of the directive for strict implementation.

Akume warned that the Federal Government would no longer tolerate violations of procurement regulations, stressing that heads of institutions who continued to disregard the law would face sanctions.

He described the continued non-compliance as unacceptable and called for strict adherence to the provisions of the Public Procurement Act.