The finance ministry is expediting payments of 2024 and 2025 capital allocations following a meeting with permanent secretary and accounting officers from various ministries, departments and agencies (MDAs) to resolve funding delays.
Minister of State for Finance Doris Anite-Uzoka reported on 2024 and 2025 capital releases to MDAs, including those impacting lawmakers’ constituency projects during a meeting with the Senate on Thursday.
MDAs are complaining about zero capital allocation releases for 2024 and 2025, and Senators are dissatisfied with constituency project funding. For instance, NBET reported to the Senate that it received only N60 million of its N858 billion electricity tariff gap allocation. The Health Ministry expressed similar concerns during Senate discussions.
During the ministry’s 2026 budget defence before the Senate Committee on Appropriation in Abuja, the minister stated that a meeting was held to inform agencies that payments were ready, pending submission of their cash plans.
She stated that outstanding payments under the 2024 capital budget would begin immediately due to pre-approved finances. Payments for the 2025 capital budget would also commence, contingent on MDAs uploading their cash plans.
“So, as of today, all outstanding payments for the 2024 and 2025 capital budgets will commence,” she said.
Nigeria Revenue Service Chairman Zacch Adedeji stated that unrealistic revenue projections hinder budget funding, emphasising that budget efficiency depends on the government’s ability to execute funded projects, not the budget size.
He warned that “overestimating revenue inevitably produces spending plans that cannot be financed, regardless of the payment structure adopted.”
He stated the government is shifting to realistic budgeting based on actual revenue, emphasising that projections must reflect the government’s accessible oil revenue.
He clarified that the Nigerian National Petroleum Company (NNPC) Limited now functions as a limited liability company, with revenue limited to taxes and royalties, rather than total production output.
“Therefore, oil revenue estimates must be based on realistic production costs and net returns rather than gross output figures,” he said.
Committee Chairman Solomon Adeola (Ogun West) criticised weak revenue performance and growing projection gaps, highlighting the inconsistency between an 18% performance in one year and a 36.5% projection for 2025.
Adeola questioned whether the economic team had confidence in its assumptions and asked whether the proposed N58.472 trillion 2026 budget should be reduced.
He warned that rising debt-servicing costs required urgent measures, including possible asset sales to reduce borrowing and future interest burdens. [InsiddeBusiness excluding headline]
