Ministries, departments, and agencies (MDAs) across Nigeria are facing a funding impasse as the Accountant-General of the Federation (AGF), Shamseldeen Ogunjimi, suspends the submission of new cash plans for the 2025 budget. The suspension comes amid concerns over stalled capital projects, procurement delays, and the ongoing lockdown of the government’s cash-planning portal.
The development raises the possibility of rolling over parts of the 2025 budget into 2026, following similar extensions granted to the 2024 capital budget. Stakeholders at a meeting in Abuja, convened by the Office of the Accountant-General of the Federation (OAGF), were briefed on the challenges affecting the implementation of the extended 2024 budget and the 2025 budget under the Bottom-Up Cash Planning Policy (BUCPP).
Under the BUCPP, MDAs are required to submit monthly cash plans via an online platform provided by the OAGF before any contract can be signed. These cash plans detail projects and fund requirements, which are then reviewed, consolidated, and sent to the Ministry of Finance for approval. Once approved, warrants are issued to authorize spending. However, since May 2025, the portal has been locked, preventing MDAs from uploading cash plans, thereby halting warrants issuance and subsequent payments to contractors, suppliers, and beneficiaries.
A senior health sector official disclosed to our correspondent that “the platform has been blocked since May, and none of us can upload our cash plans. This is creating significant delays in project execution.”
During the stakeholder engagement, AGF Ogunjimi emphasised that the BUCPP is designed to ensure fiscal discipline by mandating warrants or Authorities to Incur Expenditure (AIEs) before commitments are made. He criticised some MDAs for allegedly breaching the Public Procurement Act 2007 by awarding contracts without cash backing, leaving key projects unfunded and forcing contractors to borrow at high interest rates.
“Without a warrant, no MDA is allowed to award a new contract or process any capital payment on the GIFMIS platform,” Ogunjimi warned. He reassured that previously captured commitments would be honoured and that funds for existing contracts with approved cash plans were available.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, supported the AGF’s approach, noting that no new contracts or financial obligations should be undertaken without corresponding warrants and AIEs. He highlighted the BUCPP’s goal to improve transparency, accountability, and direct payments to contractors, ensuring funds are directed to productive investments that stimulate economic growth, create jobs, and alleviate poverty.
The Director-General of the Budget Office, Tanimu Yakubu, explained that Nigeria had lost almost 60% of gross oil revenue to allocations under the Petroleum Industry Act 2022, impacting the funds available for public expenditure. He also noted that early 2025 revenues were used to fund the extended 2024 budget, forcing the government to categorise spending into priority levels and explore amendments to the PIA to recover lost revenue.
The Bureau of Public Procurement, represented by Dr Adebowale Adedokun, reaffirmed that projects without adequate warrants or proper planning would no longer receive certification, reminding MDAs that mobilisation fees are capped at 30% under the Finance Act. Auditor-General Shaakaa Chira warned accounting officers of personal accountability for compliance and value-for-money delivery.
Revenue mobilisation was also emphasised by Dr Mohammed Shehu, chairman of the Revenue Mobilisation Allocation and Fiscal Commission, noting the rise in monthly state allocations from N700bn in 2022–2023 to N1.7tn currently. He highlighted ongoing tax reforms as crucial to plugging leakages and boosting development funding.
Despite reassurances, tensions remain high. Agriculture MDAs expressed concern that delays in issuing warrants could jeopardise seasonal projects, while other officials highlighted the risk of obsolete constituency projects due to slow fund releases.
By the end of the engagement, no definitive date was set for reopening the 2025 cash-plan portal, and officials admitted that a rollover into 2026 could be considered, echoing concerns raised by development economists about the risks of running multiple capital budgets concurrently.