February 25, 2026 — SUNTV Global Channel | News
Nigeria’s Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, has criticised the Federal Government’s centralised contract payment system, describing it as inefficient and a major obstacle to project implementation across Ministries, Departments, and Agencies (MDAs).
Speaking on Wednesday during his ministry’s 2026 budget defence before the Senate Committee on Judiciary, the justice minister said the current arrangement — introduced under the administration of President Bola Tinubu — has created serious bureaucratic bottlenecks.
Under the policy, the Federal Ministry of Finance serves as the sole authority responsible for releasing funds for capital projects executed by MDAs, replacing the previous system where agencies received funds directly.
Fagbemi argued that the old structure was far more effective.
“The old system is better because you don’t need to know anybody before your allocation is released,” he told lawmakers.
He revealed that the Ministry of Justice suffered significantly under the current framework, receiving no actual cash-backed capital releases in 2025 despite an allocation of about ₦869 million on paper.
Senate Raises Alarm Over Delays
Chairman of the Senate Judiciary Committee, Adeniyi Adegbonmire, backed the minister’s concerns, warning that funding delays — particularly within the justice sector — could weaken the country’s institutional stability.
He stressed that bureaucratic obstacles in capital releases pose risks to governance and called for urgent reforms to ensure smoother funding processes.
Presidency Announces Payment Moves
Meanwhile, the Presidency says it has begun settling outstanding capital project payments.
Special Adviser on Public Communications and Orientation, Sunday Dare, confirmed that payments tied to the 2024 budget are now underway, with full implementation of capital components for both the 2024 and 2025 budgets targeted before March 31, 2026.
He also disclosed that MDAs were directed to submit their cash plans to fast-track disbursement and reduce future delays.
Health Ministry Also Hit
Earlier this month, Nigeria’s Health Minister, Ali Pate, revealed that his ministry received only ₦36 million from its ₦218 billion 2025 capital budget allocation, further highlighting widespread challenges in accessing funds under the centralised system.
Stakeholders, including contractors and development partners, have in recent years repeatedly protested delayed payments, warning that stalled releases continue to slow infrastructure delivery nationwide.
SUNTV Global Channel reports that pressure is now mounting on the Federal Government to review the policy, as calls grow for a return to direct funding for MDAs to accelerate project execution and improve accountability.
