NASS Raises Alarm Over Zero Capital Release to Ministry of Regional Development in 2025 Budget
The National Assembly Joint Committee on Public Procurement has raised serious concerns over the failure to release capital funds to the Ministry of Regional Development for the 2025 fiscal year, describing the situation as a grave threat to national project execution and economic development.
The alarm was raised during the ministry’s 2026 budget defence session, where the Minister of Regional Development, Abubakar Momoh, disclosed that the ministry had not received any portion of the promised 30 per cent capital disbursement for 2025.
According to the minister, the ministry has neither received funds nor a warrant authorising the release, noting that the only document sighted suggested a purported N9 million release — an amount that does not reflect the pledged capital allocation.
Co-chairmen of the joint committee, Senator Olajide Ipinsagba Emmanuel and Honourable Eugene Okechukwu, described the development as unacceptable, especially given the strategic importance of the ministry in driving regional infrastructure and development projects nationwide.
The minister further revealed that although the ministry’s 2024 capital allocation stood at N24.8 billion, only 46 per cent was released, leaving 54 per cent outstanding. In contrast, there has been zero capital performance in 2025.
The committee warned that failure to release the funds before the March 31 implementation deadline could stall critical projects, delay contractor payments, and potentially expose the Federal Government to litigation.
Concerns Over 2026 Budget Proposal
The lawmakers also scrutinised the ministry’s 2026 budget proposal, which includes N3.13 billion for personnel, N6 billion for overhead, and N70 billion for capital expenditure.
Members expressed concern over the nearly 400 per cent increase in overhead — from approximately N1.7 billion in 2025 to over N6.6 billion in 2026 — describing it as difficult to justify, particularly against the backdrop of zero capital implementation in 2025. The committee also faulted the ministry for failing to provide a detailed breakdown of overhead expenditures.
In his response, the minister explained that overhead allocations are determined by the Budget Office and attributed the increase to the ministry’s expanded mandate beyond its former Niger Delta focus.
Committee to Invite Finance Minister
The committee disclosed that the issue of non-release of the 30 per cent capital component is not limited to the Ministry of Regional Development. Engagements with the Office of the Accountant-General of the Federation indicated that several Ministries, Departments and Agencies (MDAs) are yet to receive the promised disbursement, despite the extension of the 2025 budget implementation to March 31.
Lawmakers cautioned that rolling over 70 per cent of the 2025 capital allocation into 2026 without implementing the initial 30 per cent would effectively undermine that portion of the budget and hamper national development efforts.
Consequently, the committee resolved to invite the Minister of Finance and Coordinating Minister of the Economy to provide clarity on the status of capital releases and address the persistent funding gaps affecting MDAs.
The committee also noted the continued listing of the defunct “Ministry of Niger Delta” in official budget documents and urged immediate correction to reflect its transition to the Ministry of Regional Development.
The National Assembly reaffirmed its commitment to ensuring transparency, accountability, and timely release of funds necessary for effective project delivery and national growth.
