The National Assembly Joint Committee on Public Procurement has voiced strong concern over the non-release of capital funds to the Ministry of Regional Development for the 2025 fiscal year, after the Minister, Abubakar Momoh, disclosed that the ministry did not receive any portion of the promised 30 per cent capital disbursement.
Speaking on Friday during the ministry’s 2026 budget defence 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 received.
“We have not received a dime from that 30 per cent. We have not even received a warrant,” the minister said. He noted that the ministry only came across documentation suggesting a purported release of about N9 million, which he stressed did not reflect the pledged 30 per cent capital disbursement.
Co-chairmen of the joint committee, Senator Olajide Ipinsagba Emmanuel and Honourable Eugene Okechukwu, alongside other members, expressed dissatisfaction over what they described as zero capital performance in 2025. Momoh explained that while the ministry’s 2024 capital allocation stood at N24.8 billion, only 46 per cent was released, leaving 54 per cent outstanding. In contrast, he said no capital funds were released to the ministry in 2025.
The minister warned that failure to release the promised funds before the March 31 deadline could disrupt ongoing projects and potentially expose the government to litigation from contractors.
Lawmakers also scrutinised the proposed 2026 budget, particularly the sharp rise in overhead allocations.
The ministry projected N3.13 billion for personnel costs, N6 billion for overhead, and N70 billion for capital expenditure. 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 difficult to justify, especially in light of the ministry’s zero capital implementation in 2025.
One lawmaker questioned the rationale for increasing overhead by more than N5 billion when no capital projects were executed, describing the development as troubling. The committee also faulted the ministry for failing to provide a comprehensive breakdown of overhead expenses, noting that the submitted budget documents were incomplete.
In response, Momoh stated that overhead figures were determined by the Budget Office, not the ministry. He suggested that the increase may be linked to the ministry’s expanded mandate, which now covers broader regional development nationwide beyond its previous focus on the Niger Delta.
Lawmakers observed that the non-release of the 30 per cent capital component was not peculiar to the Ministry of Regional Development. They revealed that during an earlier engagement with the Accountant-General of the Federation, it emerged 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 cautioned that rolling over 70 per cent of the 2025 capital allocation into 2026 without implementing the initial 30 per cent would effectively “amputate” that portion of the budget, with serious implications for project delivery nationwide.
The committee resolved to invite the Minister of Finance and Coordinating Minister of the Economy to clarify the status of capital releases and address the persistent funding gaps affecting MDAs.
Members further 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.
Momoh confirmed that the ministry had taken steps to correct the nomenclature with the Budget Office, but the changes had yet to be effected.
After deliberations, the committee adopted the ministry’s 2026 budget proposal as a “watching document,” indicating that the minister could be recalled if necessary, particularly if there are developments regarding fund releases.
The session was adjourned with lawmakers emphasising the need for urgent engagement with the Ministry of Finance to prevent a recurrence of funding shortfalls that have affected previous fiscal years.
