FG begins payments for 2024 capital projects

 The Federal Government of Nigeria has officially commenced payments for outstanding capital projects under the 2024 budget, marking a significant step toward clearing lingering obligations and improving infrastructure delivery across the country.

The announcement came during a high-profile interactive session on Thursday at the National Assembly, where members of the Senate Committee on Appropriations grilled the economic team over revenue projections, debt levels, and the slow pace of capital releases in recent budgets. In response to lawmakers' concerns, Minister of State for Finance Doris Uzoka-Anite confirmed that disbursements for unfinished 2024 projects had begun immediately, with the Government Integrated Financial Management Information System now fully restored and operational.

“Payments for outstanding 2024 capital projects start today,” Uzoka-Anite told the committee, chaired by Senator Solomon Adeola. She emphasized that financial approvals were already in place, allowing funds to flow to contractors, ministries, departments, and agencies (MDAs) involved in these initiatives. The move addresses long-standing complaints about delayed payments that have stalled road construction, power projects, health facilities, education infrastructure, and other critical developments nationwide.

This development aligns with President Bola Tinubu's broader push to end the overlapping budget cycles that have plagued Nigeria's fiscal management for years. The administration has set a firm deadline of March 31, 2026, to fully implement and close out the capital components of both the 2024 and 2025 budgets. Uzoka-Anite assured senators that outstanding liabilities from these years would be cleared within that time frame, paving the way for a cleaner, single-budget cycle starting in April 2026.

For the 2025 budget, the process is also underway but with added requirements' MDAs must upload their detailed cash plans by Monday before any further disbursements can proceed. This step aims to ensure transparency, prevent misuse of funds, and tie releases directly to verifiable project milestones.

The timing of these payments comes amid intense scrutiny of the proposed ₦58.472 trillion 2026 Appropriation Bill, which the Senate is currently reviewing. Lawmakers expressed frustration over what they described as overly optimistic revenue assumptions, underperformance in oil benchmarks, and historically low capital budget implementation rates. Some even threatened cuts to the 2026 proposal unless assurances of better execution were provided.

Minister of Finance and Coordinating Minister of the Economy Wale Edun defended the government's approach, noting that the 2024 and 2025 capital components were still being funded despite challenges. However, the committee pressed for concrete timelines and accountability measures. The session highlighted ongoing efforts to boost non-oil revenues through improved tax administration and to restore investor confidence, which has shown signs of recovery with increased capital inflows.

The Presidency later reinforced the message through a statement, confirming that payments for 2024 capital projects had commenced alongside efforts to settle inherited debts from previous administrations. Bayo Onanuga, Special Adviser to the President on Information and Strategy, noted that full implementation of the capital elements in the 2024 and 2025 budgets remains targeted for completion by March 31, 2026.

This renewed focus on capital spending is particularly welcome for contractors and communities that have waited months or in some cases years for funds to complete vital projects. Slow releases have often led to abandoned sites, cost escalations due to inflation, and diminished public trust in government delivery.

Officials stressed that these payments are part of a deliberate strategy to prioritize completion over new starts in the transition period. Meanwhile, separate announcements from the Office of the Accountant-General indicated that 30% of the 2025 capital budget would see implementation extending into late 2026, with the bulk rolled over into the 2026 framework for continuity.

As the government works to streamline fiscal processes, the commencement of these 2024 payments signals a commitment to honoring obligations and accelerating development impact. Stakeholders, including contractors and civil society groups, will be watching closely to see how quickly funds translate into visible progress on the ground in the coming weeks.