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2025 budget – Ministries in dilemma as Accountant-General suspends fund requests

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The Federal Government may extend the 2025 budget into 2026, as slow capital project implementation, procurement delays, and a shutdown of the cash-planning portal have left many projects stalled about eight months into the fiscal year.

The possibility of a rollover came to light at a stakeholders’ engagement in Abuja on Wednesday, organised by the Office of the Accountant-General of the Federation to review progress and challenges in implementing the extended 2024 capital budget and the 2025 capital budget under the Bottom-Up Cash Planning Policy.

It was learnt that before any contract is signed, ministries, departments, and agencies must submit a monthly cash plan on an online platform provided by the OAGF. This cash plan, which sets out the projects to be funded and the amounts required, is reviewed and consolidated by the OAGF into a federal cash plan.

The consolidated plan is then sent to the Ministry of Finance for approval. Once approved, the ministry issues warrants—formal authorisations to spend—which are returned to the OAGF to be uploaded on the same portal. Only then can MDAs upload their payment plans, after which funds are released directly to contractors, suppliers, or beneficiaries.

However, since May, the portal has been locked for uploading cash plans for 2025 expenditures and contracts. Without cash plans, warrants cannot be issued; without warrants, payment plans cannot be uploaded; and without payment plans, no funds can be released.

A director-general under an agency in the health sector said that “we are complaining that the platform has been blocked since none of us could upload our cash plans since May.”

Presiding over the meeting, the Accountant-General of the Federation, Shamseldeen Ogunjimi, said the BUCPP was designed to ensure the government spent within its means by requiring warrants or Authorities to Incur Expenditure before commitments were made. He accused some MDAs of breaching the Public Procurement Act 2007 and other regulations, awarding contracts simply because they were budgeted for, without regard to cash availability.

He also faulted the trend of loading cash needs heavily with staff-related costs and mobilisation fees while leaving ongoing and completed projects unfunded. This, he said, had forced some contractors to borrow from banks at high interest rates and left priority government projects unattended.

“Without [a warrant], no MDA is allowed to award a new contract or process any capital payments in the GIFMIS platform,” Ogunjimi warned. He added that cash plans submitted between February and March for the extended 2024 budget had already been warranted, and that payments authorised but unused were now being finalised.

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Ogunjimi assured participants that previously captured commitments would be honoured. “For those who have awarded contracts, the contract has been loaded on the GIFMIS platform, cash one has been done, it has become a liability to the government that we are ready to fund and we will fund them,” he said.

But he made it clear that when the portal reopens, “any new entrance” will be treated as a new contract and must comply with the revised process. He urged accounting officers to start payment initiation where warrants had been issued, insisting there were enough funds in the Capital Development Fund to cover them.

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, backed the Treasury’s stance. He stressed that “no letter of award is to be issued, contract signed, or any financial obligation entered into unless corresponding warrants and AIEs covering the full or committed portion have been duly released.”

Edun said the BUCPP was intended to make the payment system “more rigorous, more transparent, more accountable” by paying contractors and suppliers directly, without any middlemen.

He acknowledged that the government must meet existing obligations but said the priority was to direct new funds into productive investments that would expand the economy, create jobs, and lift millions out of poverty. “We spend what we have earned,” he said, warning that the old habit of committing funds without authority had to stop “right now, right here.”

Also speaking, the Director-General of the Budget Office of the Federation, Tanimu Yakubu said Nigeria had lost nearly 60 per cent of its gross oil revenue to deductions under the Petroleum Industry Act 2022, which allocates 30 per cent to the Nigerian National Petroleum Company Limited as management fees and another 30 per cent to the Frontier Exploration Fund.

“Once the Act came into effect without new revenue sources to replace the loss, we lost a sizable part of what used to fund 80 per cent of public expenditure,” Yakubu said. He added that oil revenues had performed even worse in the first half of 2025 due to low prices and output shortfalls.

Matters were made worse, he said, by the fact that 2025 revenues were used early in the year to fund the extended 2024 budget, forcing the government to rank all spending into Category A, B, and C projects. Yakubu said he had begun moves in the National Assembly to amend the PIA to recover part of the lost revenue.

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He also disclosed that not all the loans approved under the 2024 National Borrowing Plan were raised, but the Finance Ministry would raise the balance to close the extended 2024 capital budget without further eating into 2025 funds.

On procurement, the Director-General of the Bureau of Public Procurement, Dr Adebowale Adedokun, backed the warrant-first approach. He said projects without adequate warrants or proper planning would “no longer be issued with relevant certification,” and reminded MDAs that mobilisation fees were capped at 30 per cent under the Finance Act.

He urged them to use open advertising as the default procurement method, warning that too many requests for selective tendering made funding more difficult. “Our job is to ensure that we deliver and make Nigerians have value for every kobo spent,” he said.

Auditor-General of the Federation, Shaakaa Chira, told accounting officers they would be personally accountable for ensuring compliance. “Our collective legacy will be judged not by the size of the budget we manage, but by the quality and sustainability of the result we deliver,” he said, promising audits focused on compliance, performance, and value for money.

Chairman of the Revenue Mobilisation Allocation and Fiscal Commission, Dr Mohammed Shehu, emphasised the need to mobilise more revenue. He noted that monthly allocations shared to states had risen from about N700bn in 2022–2023 to N1.7tn currently, and described ongoing reforms, especially in tax, as vital to plugging leakages and increasing funds for development.

Director of Funds at OAGF, Steve Ehikhamenor, broke down the operational changes. On 28th February 2025, he said, the total amount of capital transfers from 2024 was automatically added to the 2025 capital budget on the OAGF platform, increasing the funding requirement.

Under the revised BUCPP, MDAs must upload their legal and financial commitments as monthly cash needs, which the OAGF consolidates and sends to the Finance Ministry for warrants. Once warrants are issued, the OAGF funds the portal and pays beneficiaries directly.

He confirmed that cash plans submitted between February and March under the extended 2024 budget had been warranted and that other outstanding plans were being processed. Going forward, MDAs must submit separate annual implementation plans for the extended 2024 and the 2025 budgets, and no expenditure—including staff payables—can be incurred without a warrant.

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He urged MDAs with existing warrants to begin payments immediately, saying the funds were ready and would not be diverted. The interactive session laid bare the tensions. Agriculture officials complained that waiting for warrants could make seasonal projects, such as fertiliser distribution, miss their planting windows.

Others asked what would happen to the award letters already issued while the portal remained shut. Ogunjimi replied that contracts already loaded on the portal with completed cash plans would be funded. “It is a commitment and we are going to fund it,” he said.

A permanent secretary urged issuing warrants first so MDAs could prioritise realistically, warning that contractors were increasingly refusing to accept award letters without cash backing. Another participant pointed out that delays between budget approval and release meant some constituency projects became obsolete before they were funded.

Yakubu from the Budget Office later presented compliance “guardrails” to ensure spending stayed within National Assembly approvals, that warrants matched appropriated rollover amounts, that quarterly cash plans reflected legislative priorities, and that unspent 2024 balances were ring-fenced for their original projects.

By the end of the stakeholder engagement, there was still no specific date for reopening the portal for uploading 2025 cash plans. Senior officials in attendance admitted that a rollover into 2026 may be considered, similar to the ongoing extension of the 2024 budget to December 31, 2025.

It was earlier reported that the Senate and the House of Representatives, for the second time, extended the implementation of the capital component of the 2024 budget to December 31, 2025, sparking renewed criticism against President Bola Tinubu and the National Assembly.

A source at a federal ministry earlier disclosed that the implementation of the 2025 national budget is yet to commence. Speaking off the record due to the fear of being victimised, the senior official said all expenses and operations at the ministry were still being executed under the 2024 budget, which has led to widespread delays in payments to contractors and government workers.

A development economist based in Abuja, Dr Aliyu Ilias, had described the repeated extension of the capital budget as a worrying precedent that could distort the country’s budgetary process. In a phone interview, Ilias warned that running two capital budgets concurrently could create room for duplication and reduce transparency in project implementation.

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Police comb forest after terrorists abduct NECO students in Borno

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The Borno State Police Command has deployed security operatives to Lassa community in Askira/Uba Local Government Area following the abduction of an unspecified number of students writing the National Examinations Council examinations by suspected terrorists.

PUNCH Online had earlier reported that the attackers stormed the school at about 9 a.m. on Monday, shooting sporadically before abducting students and women selling food items within the school premises.

Confirming the deployment to PUNCH Online, the spokesperson for the Borno State Police Command, Nahum Daso, said security operatives confronted the attackers, preventing a larger-scale abduction.

“Around 9 a.m. in the morning, ISWAP attacked Lassa Day Secondary School. They shot sporadically. An unspecified number of students have been abducted.

“Security forces confronted them. For now, we have an unspecified number of students who were abducted. The CP deployed the Area Commander in Askira/Uba. They are currently combing the bush,” Daso said.

The Special Adviser to Adamawa State Governor, Ahmadu Fintiri, on Media and Strategy, Mr Solomon Kwamagar, a resident of Lassa, also confirmed the incident to PUNCH Online on Monday morning.

He disclosed that the attackers arrived on motorcycles and invaded the school.

“Today is Lassa market day. I was informed that they came through the market on motorcycles and went to Government Day Secondary School, Lassa. They shot and killed one teacher and took away all the students who were in their classrooms,” he said.

Kwamagar added, “Lassa in Borno State is predominantly inhabited by my people, the Margi. We are in both Adamawa and Borno states. I am from Lassa, but I chose to reside in Madagali Local Government Area of Adamawa State.”

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He further said, “I’m still making contacts to ascertain the total number of students and teachers who were kidnapped from the school.”

Earlier, the President of the Borno South Youth Alliance, Samaila Kaigama, told PUNCH Online that the attackers wore military and forest guard uniforms.

“Yes. There was an attack on students writing NECO exams. The terrorists came around past nine. They passed the military checkpoint. They wore military and forest guard attire. They shot sporadically,” he said.

Kaigama said one teacher was killed while another sustained gunshot injuries.

“They killed one teacher from Chibok. They shot another, but not dead yet. They also kidnapped some students and women selling on the school premises. The numbers are not yet out,” he said.

When contacted, the Chairman of Askira/Uba Local Government Area, Mada Saidu, declined to comment.

“I am very busy now. We are in a situation,” he said.

Efforts to obtain comments from the state Commissioner for Information and Internal Security, Usman Tar, were unsuccessful as he neither answered calls nor responded to messages.

However, residents who spoke to PUNCH Online claimed that two teachers and one student were killed during the attack.

“They killed two teachers and one female student. The student was shot in her mouth,” a resident who requested anonymity said.

On May 16, PUNCH Online reported that 42 students and pupils were abducted after suspected Boko Haram terrorists attacked Mussa Primary and Junior Secondary School in Askira/Uba Local Government Area.

The senator representing Borno South, Ali Ndume, had said the abductees comprised four students of Government Day Secondary School, 28 primary school pupils and 10 children abducted from their homes.

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NASS sends state police bill to 36 states’ assemblies

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The National Assembly is set to transmit the Constitution Alteration Bill seeking the establishment of state police to the 36 state Houses of Assembly this week, marking the next critical stage of one of Nigeria’s most far-reaching security reforms.

The development comes days after the Senate passed the landmark constitutional amendment, with lawmakers now racing to secure the approval of at least 24 state legislatures before the bill can be transmitted to President Bola Tinubu for assent.

Chairman of the Senate Committee on Media and Publicity, Yemi Adaramodu, disclosed the development in an exclusive interview with The PUNCH on Sunday, saying all the necessary arrangements had been concluded for the transmission.

According to him, the state legislatures and governors were already awaiting the bill following consultations held ahead of its passage by the National Assembly.

“The bill for the creation of state police will get to the states this week. The states’ speakers have met and are awaiting the bill from the National Assembly.

“The state governors are expecting it too, even with their presence in the Senate chamber when the bill was being considered and passed,” Adaramodu said.

The planned transmission signals the beginning of the final constitutional hurdle for the proposed amendment, which requires endorsement by not less than two-thirds of the 36 state Houses of Assembly in line with Section 9 of the 1999 Constitution before it can become law.

Momentum has continued to build behind the proposal since the Senate approved the amendment after a clause-by-clause consideration of the report presented by the Senate Committee on the Review of the Constitution, chaired by Deputy Senate President Barau Jibrin.

The legislation seeks to establish a dual policing structure that will empower state governments to establish and maintain police services within their jurisdictions while preserving the constitutional responsibilities of the Nigeria Police Force over national security matters such as terrorism, border security, cybercrime, arms trafficking and other federal offences.

To address longstanding concerns over possible abuse by state governments, lawmakers incorporated several safeguards into the bill, including provisions prohibiting state police authorities from targeting individuals or groups for criticising governments and empowering the Federal Government to intervene in cases involving threats to national security, breakdown of public order or violations of fundamental human rights.

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The proposed reform has received unprecedented backing from governors, speakers of state legislatures and major political stakeholders across the country.

The Conference of Speakers of State Legislatures in Nigeria had earlier endorsed the bill, with its Chairman and Speaker of the Delta State House of Assembly, Emomotimi Guwor, assuring Nigerians that all state houses of assembly would give the proposal diligent consideration.

Several governors have also welcomed the amendment, describing it as a timely response to worsening insecurity across the federation.

Among them, Benue State Governor, Hyacinth Alia, described the Senate’s passage of the bill as a landmark step towards strengthening Nigeria’s security architecture, arguing that state police would possess a better understanding of local terrain and community dynamics, thereby improving intelligence gathering and response to criminal activities.

Similarly, the Forum of Progressive Speakers of State Legislatures under the All Progressives Congress pledged to facilitate speedy ratification in APC-controlled houses of assembly while promising robust oversight mechanisms to ensure professionalism and respect for human rights.

The Labour Party also threw its weight behind the proposal, describing the Senate’s action as a significant milestone in the quest to strengthen internal security through community-based policing.

Though it acknowledged concerns over possible abuse by governors, the party expressed confidence in the constitutional safeguards embedded in the amendment.

The proposal also attracted opposition from the Peoples Redemption Party, which questioned the timing of the initiative and urged Nigerians to reject it, arguing that the current administration lacks the credibility to oversee such a fundamental restructuring of the country’s policing system.

Despite the reservations expressed by critics, the planned transmission of the bill to the states this week is expected to trigger deliberations across the 36 Houses of Assembly, where lawmakers will conduct public hearings, stakeholder engagements and legislative scrutiny before voting on the constitutional amendment.

If at least 24 state assemblies endorse the proposal, it will pave the way for President Bola Tinubu’s assent, potentially ending decades of debate over the decentralisation of policing and ushering in what many stakeholders believe could be the most significant reform of Nigeria’s internal security architecture since the return to democratic rule in 1999.

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Meanwhile, the Senate on Sunday defended the passage of the state police bill, insisting that its passage, which 84 senators supported, is a response to Nigeria’s worsening security challenges.

The upper chamber said the bill emerged from years of consultations, public engagements, and broad national consensus, stressing that it would be wrong to delay the proposal for political calculations ahead of the 2027 general election.

The position comes amid growing debate over the constitutional amendment bill, with supporters arguing that decentralising policing will improve security at the grassroots, while critics fear that state police could be abused by governors to intimidate political opponents.

Defending the Senate’s decision in a statement issued by his media office on Sunday, the Leader of the Senate, Opeyemi Bamidele, said the proposal was “purely a child of necessity and not of political expediency as well as a product of national consensus and not of cynicism.”

He maintained that the establishment of state police had become a matter of urgent national importance that should not be sacrificed because of anyone’s political ambition.

According to him, the process leading to the passage of the bill did not begin recently but evolved through extensive constitutional review engagements involving key stakeholders across the country.

Despite some dissenting views, Bamidele said observations had shown that Nigerians largely welcomed the passage of the bill with the belief that it would significantly improve security at the sub-national level.

He said, “The state police proposal was part of memoranda submitted to the Senate Ad hoc Committee on the Review of the 1999 Constitution. The memorandum had been subjected to a rigorous process and multi-tiered consultation across the federation due to its sensitive nature.

“During this process, the National Assembly broadly consulted the executive, the Nigeria Governors’ Forum, the Conference of Speakers of the State Legislatures of Nigeria and the leadership of the Nigeria Police, among others.

“In July 2025, the National Assembly conducted public hearings in all geopolitical zones, and the participants overwhelmingly approved it.

“At each level of our consultation, nearly all stakeholders embraced the State Police Bill in the light of stark realities we are facing today.”

The Senate Leader said the Nigerian Police actively contributed to the drafting of the constitutional amendment by offering recommendations that helped lawmakers build safeguards against potential abuse of state police by political actors.

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According to him, those recommendations formed part of accountability and oversight mechanisms embedded in the legislation to ensure that state police operate within constitutional limits.

He added that the willingness of the Nigerian Police to support the proposal underscored its strategic importance in addressing insecurity at the local and state levels.

Beyond the contributions of the police hierarchy, Bamidele said the bill was subjected to extensive debates in both chambers of the National Assembly before its eventual passage.

He noted that support for the legislation cut across party lines.

He said: “Even though the APC is the majority, there are members of opposition parties – PDP, ADC, NDC and Labour Party – that exercised their discretion in favour of the Bill, mainly in the national interest and not on a parochial basis.

“In the Senate, for instance, 84 out of 109 members voted clause by clause in support of the Bill. This accounted for 77.06 per cent approval at the Senate alone.”

Bamidele argued that security should transcend political affiliations, noting that countries facing security threats often unite behind reforms aimed at strengthening national safety.

Globally, he said, security “is a collective public good that benefits citizenry across ethnic, political and religious divides.

“Political actors elsewhere always throw off their togas of partisanship and parochialism to support initiatives that will boost and reinforce national security.”

He, therefore, urged opposition parties to contribute constructive ideas that would strengthen peace and stability across the federation rather than oppose initiatives solely on political grounds.

Bamidele also challenged opposition parties and leaders to come forward with ideas that would deepen the peace and stability of the federation.

“Even when they disagree on some grounds, they are under obligations to provide credible and useful ideas that can make our nation better and greater. Unfortunately, they have not passed this critical test of opposition democracy,” Bamidele said.

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Chaos as flooding shuts Lagos airport temporary terminal

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There was chaos at the temporary terminal of the Murtala Muhammed International Airport, Lagos, on Sunday after heavy rainfall caused severe flooding at the facility.

The departure hall, boarding gates, airline temporary offices, and other sections of the makeshift terminal were submerged. The situation forced the Federal Airports Authority of Nigeria to shut the terminal abruptly, as airlines operating from the facility could no longer process passengers.

As a result of the flooding, airlines, including Air France-KLM, Ethiopian Airlines, and Fly Gabon, were relocated from the terminal. According to officials, the terminal’s powerhouse was also flooded, forcing the authorities to switch off electricity.

Consequently, all airlines operating from the facility were moved to Terminal Two of the MMIA. FAAN officials alleged that the flooding was caused by blocked drainage channels, which they attributed to the Chinese company currently reconstructing the old international terminal.The incident came just months after FAAN shut the old MMIA terminal for a major reconstruction project estimated to cost more than N600bn. A few months ago, a fire also broke out at the old terminal, damaging parts of the facility.

Sources said the ongoing reconstruction of the old terminal by the Chinese contractor has caused several disruptions at the airport.

Reacting to Sunday’s flooding, FAAN spokesperson Henry Agbebire confirmed the incident, attributing it to the ongoing construction work at the airport.

According to Agbebire, the construction temporarily affected the drainage system, resulting in flooding. He said, “It was the construction works that affected the drainage. And for operational reasons, we have moved airlines operating from that terminal to Terminal 2, and the development has not really affected their operations.

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“There were no cancellations at all. We have taken immediate action to fix that problem to the extent that it doesn’t happen again. You can rest assured of that.”

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