Budget Defence: Regional Development Ministry Records 0% Performance in 2025, leaving lawmakers Flummoxed on 2026 Appropriation
By Fatima Saka
The National Assembly Joint Committee on Public Procurement on Friday expressed outrage over the non-release of capital funds to the Ministry of Regional Development for the 2025 fiscal year, as Minister Abubakar Momoh disclosed that the ministry had not received any portion of the promised 30 per cent capital disbursement.
Speaking during the ministry’s 2026 budget presentation and review of its 2025 performance, Momoh told lawmakers that despite assurances that 30 per cent of the capital allocation would be released before March 31, no funds had been disbursed.
“We have not received a dime from that 30 per cent. We have not even received a warrant,” the minister said, adding that the ministry only sighted documentation of a purported N9 million release, which did not reflect the promised 30 per cent capital allocation.
The committee voiced serious concern over the ministry’s zero capital performance for 2025, describing the development as unacceptable and detrimental to ongoing projects.
Momoh explained that although the ministry’s total capital provision for 2024 stood at N24.8 billion, only 46 per cent was released, leaving an outstanding 54 per cent. For 2025, however, he confirmed that no capital funds had been received.
He warned that failure to release the pledged 30 per cent before the end of March could stall critical projects and expose the government to potential legal disputes from contractors.
Lawmakers also criticised the sharp rise in overhead allocations in the proposed 2026 budget. While personnel costs were projected at N3.13 billion, overhead at over N6 billion and capital at N70 billion, members described the nearly 400 per cent increase in overhead — from about N1.7 billion in 2025 to over N6.6 billion in 2026 — as unjustifiable.
One lawmaker questioned the rationale behind increasing overhead by more than N5 billion when the capital component recorded zero implementation in 2025, calling the trend troubling and fiscally irresponsible.
The committee further faulted the ministry for failing to provide a detailed breakdown of overhead expenditures, noting that the submitted budget documents were incomplete.
In his response, Momoh clarified that overhead figures were determined by the Budget Office, not the ministry. He attributed the increase to the ministry’s expanded mandate, which now extends beyond the Niger Delta to broader regional development nationwide.
Lawmakers observed that the non-release of the 30 per cent capital component was not limited to the Ministry of Regional Development. They disclosed that during an earlier engagement with the Accountant-General of the Federation, it was revealed that several Ministries, Departments and Agencies had yet to receive the promised disbursement, despite the extension of the 2025 budget implementation to March 31.
They warned that rolling over 70 per cent of the 2025 capital allocation into 2026 without implementing the initial 30 per cent would effectively undermine the budget and cripple project delivery across the country.
The committee resolved to invite the Minister of Finance and Coordinating Minister of the Economy to clarify the status of releases and address the persistent funding gaps affecting MDAs.
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Members also raised concerns over the continued listing of the defunct Ministry of Niger Delta in official budget documents, despite its transition to the Ministry of Regional Development. The minister confirmed that the necessary representations had been made to the Budget Office for correction, but no changes had been effected.
At the close of the session, the committee adopted the ministry’s 2026 budget proposal as a “watching document,” noting that the minister could be recalled if fund releases improve or further clarifications become necessary. Lawmakers stressed the urgency of engaging the Ministry of Finance to prevent a repeat of funding shortfalls that have hampered project implementation in previous fiscal years.
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