March 05, (THEWILL) — Recent budget defence sessions at Nigeria’s National Assembly have revealed significant funding challenges affecting several Ministries, Departments and Agencies (MDAs), raising concerns about the government’s ability to implement approved projects.
During the defence of the 2026 appropriation proposals, many agencies informed lawmakers that despite large budget approvals, the actual release of funds—particularly for capital projects—remains very low.
Officials said the gap between allocations and cash releases has stalled projects, left contractors unpaid and forced agencies to operate far below their approved budgets.
The Ministry of Health and Social Welfare disclosed that out of about ₦218 billion approved for capital projects in 2025, only about ₦36 million had been released.
The ministry said the shortfall has delayed hospital upgrades, procurement of medical equipment and other health programmes.
Similarly, the Ministry of Solid Minerals Development reported that none of its ₦865.06 billion capital allocation had been released, halting several mining and infrastructure projects.
The Ministry of Marine and Blue Economy also received only about ₦202 million out of ₦3.53 billion approved for capital spending, while the Ministry of Women Affairs said it obtained just ₦394.8 million from its ₦89.8 billion capital allocation.
Lawmakers expressed concern over the disclosures, noting complaints from contractors over unpaid projects.
Analysts warn that persistent underfunding of capital projects could slow infrastructure development and hinder economic growth if not urgently addressed.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
