The Federal Government has ordered all Ministries, Departments, and Agencies (MDAs) to stop signing contracts in foreign currencies, as part of a wider plan to strengthen the naira and enforce stricter financial discipline across public institutions.
This directive, contained in the 2025 Appropriation Act Implementation Guidelines, mandates that all contracts must be priced strictly in Nigerian Naira unless prior approval is obtained from the Minister of Finance and Coordinating Minister of the Economy.
According to the Budget Office, the move is designed to curb unnecessary pressure on the country’s foreign exchange reserves and ensure transparency in government procurement.
Beyond contract regulations, the guidelines introduce new reporting standards. MDAs are now required to submit monthly budget performance reports by the 15th of every month. Agencies that fail to comply risk losing access to future budget releases for both capital and recurrent expenses.
The government is also targeting inefficiencies in personnel costs. MDAs have been warned not to initiate payments for promotions or salary arrears on the IPPIS platform without clearance from a designated committee. Monthly and quarterly audits of nominal rolls will be conducted to weed out inflated payroll entries and unjustified allowances.
Further, no agency may undertake new recruitments, approve unverified allowances, or replace staff without express authorisation. Any official who violates this will face sanctions.
The updated policy also enforces compliance with rules on inclusive hiring, especially the requirement that five per cent of jobs in public institutions be reserved for persons living with disabilities. Future staffing approvals must reflect compliance with this standard.
On tax-related matters, the government reiterated that MDAs are not permitted to grant tax exemptions without due legal process. It warned against unchecked tax expenditures, such as waivers and exemptions, stressing the need to stay within the approved limits set in the 2025 budget.
Support from international partners must now go through the Ministry of Budget and Economic Planning’s International Cooperation Department. All financial or material aid must be documented and reported monthly.
These measures follow President Bola Tinubu’s approval of the Renewed Hope Nigeria First policy, which prioritises local products, services, and expertise in all public spending. Officials say the policy is aimed at boosting local industries and curbing dependency on imports.
Reacting to the development, economic experts praised the decision. Economist Adewale Abimbola said it’s a strategic move to reduce corruption and forex misuse in government contracts. Another expert, Dr Aliyu Ilias, noted that Nigeria’s forex instability is partly due to the prevalence of dollar-denominated deals in both public and private sectors.
He advocated for a complete ban on such contracts, saying this would reduce the demand for foreign currency and help stabilise the naira.
The government has also announced plans to back the policy with an executive order, which is currently being prepared by the Attorney General.
With these sweeping reforms, the Tinubu-led administration hopes to strengthen budget accountability, promote local content, and restore economic stability through fiscal discipline.
