NASS grills Minister as zero capital release cripples Regional Development Ministry

By James Isaac, Abuja

 

 

The National Assembly Joint Committee on Public Procurement on Friday expressed outrage over the non-release of capital funds to the Federal Ministry of Regional Development for the 2025 fiscal year, as the Minister, Abubakar Momoh, revealed that the ministry had not received a single kobo from the promised capital disbursement.

The disclosure was made during the ministry’s 2026 budget defence session and review of its 2025 performance before lawmakers at the National Assembly.

Addressing members of the committee, Momoh said assurances had earlier been given that at least 30 per cent of the ministry’s capital allocation would be released before March 31, but 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 told lawmakers, adding that the ministry only sighted documentation indicating a purported release of N9 million, which he said did not reflect the promised capital disbursement.

Members of the joint committee described the situation as alarming, noting that the ministry recorded zero capital performance in 2025. Momoh explained that while the ministry had a capital provision of N24.8 billion in 2024, only 46 per cent was released, leaving an outstanding 54 per cent unpaid. The situation worsened in 2025, he said, with no capital releases at all.

The minister warned that failure to release funds could stall ongoing projects and expose the Federal Government to contractual disputes and possible litigation from contractors handling development projects across the country.

Lawmakers also faulted the sharp increase in overhead allocations contained in the ministry’s proposed 2026 budget. They questioned the significant rise in administrative expenditure despite the absence of capital implementation in the preceding year, describing the development as troubling and difficult to justify.

Committee members further criticised the ministry for submitting incomplete budget documents without a detailed breakdown of overhead spending, stressing that transparency was necessary for proper legislative oversight.

In response, Momoh clarified that the ministry did not determine the overhead figures, explaining that allocations were prepared by the Budget Office of the Federation. He suggested the increase might be connected to the ministry’s expanded national mandate following its transition from the former Ministry of Niger Delta Affairs to the Ministry of Regional Development, which now oversees broader regional development responsibilities nationwide.

The committee observed that the non-release of capital funds was not peculiar to the ministry alone. Lawmakers disclosed that during an earlier engagement with the Accountant-General of the Federation, several Ministries, Departments and Agencies confirmed they had yet to receive the promised releases despite the extension of the 2025 budget implementation period to March 31.

They warned that rolling over a large portion of the 2025 capital allocation into 2026 without implementing the initial releases would effectively “amputate” that segment of the budget, with serious consequences for project execution and infrastructure delivery nationwide.

To address the funding gap, the committee resolved to invite the Minister of Finance and Coordinating Minister of the Economy to clarify the status of capital releases and explain the persistent delays affecting budget implementation.

Lawmakers also raised concerns over the continued appearance of the defunct “Ministry of Niger Delta” in official budget documents despite its restructuring. The minister confirmed that representations had been made to the Budget Office to correct the nomenclature, but the changes were yet to be effected.

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

The session was subsequently adjourned, with lawmakers stressed the need for urgent engagement with fiscal authorities to prevent a recurrence of funding shortfalls that have continued to undermine budget implementation in previous fiscal years.

 

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