Zero Capital Release: NASS Grills Regional Development Minister Over 2025 Budget Failure

Zero Capital Release: NASS Grills Regional Development Minister Over 2025 Budget Failure

Abuja — The National Assembly Joint Committee on Public Procurement has expressed outrage over the non-release of capital funds to the Ministry of Regional Development for the 2025 fiscal year, as the Minister, Abubakar Momoh, disclosed that the ministry received none of the promised 30 per cent capital disbursement.

Speaking during the ministry’s 2026 budget defence and review of its 2025 performance on Friday, the minister told lawmakers that despite assurances that 30 per cent of the capital allocation would be released before March 31, not a single kobo had been disbursed.

“We have not received a dime from that 30 per cent. We have not even received a warrant,” Momoh said, adding that the ministry only sighted documentation indicating a purported release of about N9 million — an amount he stressed was inconsistent with the pledged capital disbursement.

The co-chairmen of the committee, Senator Olajide Ipinsagba Emmanuel and Honourable Eugene Okechukwu, led members in questioning what they described as a zero per cent capital performance for 2025. The minister explained that although the ministry’s 2024 capital allocation stood at N24.8 billion, only 46 per cent was eventually released, leaving a 54 per cent shortfall. In contrast, he noted, no capital funds were released at all in 2025.

Momoh warned that failure to release the promised funds before the March 31 deadline could stall ongoing projects and expose the Federal Government to potential litigation from contractors.

Lawmakers also turned their attention to the ministry’s proposed 2026 budget, raising concerns over a sharp rise in overhead costs. The proposal includes N3.13 billion for personnel, 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 given the ministry’s zero capital implementation in 2025.

One lawmaker queried the rationale for increasing overhead by more than N5 billion when no capital projects were executed, describing the development as troubling. The committee further faulted the ministry for failing to provide a detailed breakdown of overhead expenses, noting that submitted documents were incomplete.

In his response, Momoh clarified that overhead projections were determined by the Budget Office and not solely by the ministry. He attributed the increase to the ministry’s expanded mandate, which now covers regional development nationwide beyond its previous focus on the Niger Delta.

Committee members observed that the non-release of the 30 per cent capital component was not peculiar to the Ministry of Regional Development. They disclosed 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.

Lawmakers 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 consequences 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 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 steps had been taken with the Budget Office to correct the nomenclature, though the changes are yet to reflect in official records.

At the close of deliberations, the committee adopted the ministry’s 2026 budget proposal as a “watching document,” signalling that the minister could be recalled if necessary, particularly if there are new developments regarding fund releases.

The session was adjourned with a call for urgent engagement with the Ministry of Finance to prevent a repeat of funding shortfalls that have plagued previous fiscal years.