• It’s setback for Tinubu’s agenda –Economist

The Federal Government has failed in its promise of ‘immediate release’ of 30 per cent of the 2025 capital budget to Ministries Department and Agencies (MDAs) before March 2026 as a way of cushioning consecutive delay in the implementation of capital component of the 2024, 2025 budgets and their negative impact on the economy, New Telegraph findings have shown.

Instead of the 30 per cent capital release as promised, most of the MDAs got 10 per cent, 15 per cent and 20 percent, reinforcing the poor releases that characterized 2024, 2025 capital budgets. Directors of Finance and Accounts (DFAs) in most MDAs told the New Telegraph that they could not liquidate a substantial portion of local contractors’ debt due to insufficient releases by the Office of the Accountant Gederal of Federation (OAGF).

A Director of Finance and Accounts at a federal health institution said while the payment warrant carries 30 per cent as a sub head, what was released and cash backed was 12 per cent.

In some MDAs it’s as ridiculously low as 10 per cent. He said no agency got the 30 per cent promised. “If you recall, when it was obviously embarrassing to the government that both 2024, 2025 budgets (capital) were almost at zero releases, they rose to the challenge.

With the 2026 fiscal year, they told MDAs to move 70 per cent of the 2025 capital budget to 2026. The idea was, they will release 30 per cent and cash backed payment. In fact, they fooled us by the promise”, he said, stressing that “warrants do not translate to cash backing”. He said Directors of Finance and Accounts in MDAs compared notes and exchange information about releases.

The Director of Press at OAGF, Mallam Bawa Mokwa, promised to get back when he was contacted by this medium for explanation. He never did. Reacting to the development, economist and financial analyst, Dr. Aliyu IIias, described failure by the government to fund capital budget implementation as a serious economic problem. He described it as a set back for President Tinubu administration.

“We have a budget implementation problem with this government which is a major problem. “In fact, it is a setback for Tinubu-led administration because they failed in terms of budgetary implementation. You will recall that the capital expenditure implementation of the 2025 budget started around October and, according to them, they could only do 30 per cent while moving the 70 per cent to 2026 budget.

“However, even those that they want to do, the MDAs said they haven’t received their capital votes. In fact, the minister of health and social welfare said they did not have a capital budget implemented because there was no release”. “A budget has three components. It has recurrent expenditure. If there is no money, the government could borrow through Ways and Means from CBN to cope with the recurrent expenditure. The second is debt service. Debt service is an obligation. So whether you have the money or not, you must provide it.