Moses Adeniyi
The implementation of Nigeria’s 2025 budget is in limbo as the Office of the Accountant-General of the Federation (OAGF) has suspended requests for funds, leaving many ministries, departments, and agencies (MDAs) unable to execute projects more than eight months into the fiscal year.
At a stakeholders’ engagement in Abuja on Wednesday, Accountant-General of the Federation, Shamseldeen Ogunjimi, confirmed that the federal cash-planning portal has been locked since May, preventing MDAs from uploading their monthly cash plans—a prerequisite for obtaining spending warrants.
“Without [a warrant], no MDA is allowed to award a new contract or process any capital payments in the GIFMIS platform,” Ogunjimi warned. “Any new entrance will be treated as a new contract and must comply with the revised process.”
Under the Bottom-Up Cash Planning Policy (BUCPP), MDAs must submit a detailed monthly cash plan for approval by the Ministry of Finance before any payments are authorised. Once approved, warrants—formal authorisations to spend—are issued and loaded onto the platform, allowing funds to be released directly to contractors and suppliers.
Since May, however, the system has been inaccessible for 2025 budget requests, stalling new projects and leaving ongoing contracts underfunded. Ogunjimi criticised some MDAs for “breaching the Public Procurement Act 2007” by awarding contracts “simply because they were budgeted for” without confirming cash availability.
Finance Minister Wale Edun backed the freeze, stating: “No letter of award is to be issued, contract signed, or any financial obligation entered into unless corresponding warrants… have been duly released.” He argued the BUCPP would make spending “more rigorous, more transparent, more accountable” by paying suppliers directly.
Officials from the Budget Office also highlighted severe revenue shortfalls. Director-General Tanimu Yakubu revealed Nigeria had “lost nearly 60 per cent of its gross oil revenue” due to deductions under the Petroleum Industry Act, coupled with low oil prices and production shortfalls in 2025.
The freeze has drawn complaints from MDAs, particularly those handling seasonal projects. Agriculture officials warned that waiting for warrants could make fertiliser distribution miss planting windows. A permanent secretary cautioned that contractors were now “increasingly refusing to accept award letters without cash backing.”
While Ogunjimi assured that “previously captured commitments” would be honoured, there is still no date for reopening the portal. Senior officials admitted that the 2025 budget could be rolled over into 2026—mirroring the ongoing extension of the 2024 capital budget until 31 December 2025.
Development economist Dr Aliyu Ilias described the repeated extensions as “a worrying precedent” that could “distort the budgetary process” and create “room for duplication” in project funding.
For now, many federal projects remain on hold, and government operations are still being run under the extended 2024 budget—a situation that has sparked frustration among contractors, civil servants, and lawmakers alike.