2025 Budget Crisis: Ministries Scramble as Accountant-General Halts Fund Requests

How the 2025 Budget Suspension by Accountant-General Impacts Ministries

The Accountant-General of the Federation (AGF), Mr. Shamseldeen Ogunjimi, has suspended all fund request processing and approvals for the 2025 budget. This decision has plunged several Ministries, Departments, and Agencies (MDAs) into uncertainty, with project implementation effectively at a standstill.
As a result, there are fears the 2025 budget could roll over into 2026, delaying critical spending and hindering developmental momentum.

During a stakeholder engagement with MDAs, the AGF outlined a shift towards a cash-management and bottom-up cash-planning policy.
Key points stressed:
- Warrants must be issued prior to any contract award or payment processing—no contract can be signed nor any payment commenced without a corresponding warrant that confirms available funds.
- This reform aims to curb irresponsible budgeting, such as launching new contracts while ignoring unfinished ones and prematurely transferring funds to vendors.
- The move is rooted in enforcing compliance with existing laws, including the Public Procurement Act (2007) and the Fiscal Responsibility Act (2007).

Implication	Explanation
Operational Standstill	With fund requests suspended, MDAs cannot commence new projects or continue payments on existing contracts.
Budget Roll-over Risk	Projects slated for execution in 2025 may be delayed into 2026 if the freeze continues.
Increased Oversight	The AGF is demanding stricter compliance with financial regulations before any spending is approved.
Systemic Reform Push	The freeze is part of broader push to ensure transparency, accountability, and value-for-money in public spending.

Nigeria’s 2025 budget is grappling with several systemic challenges:
- Overly optimistic revenue and oil projections, compounded by rising debt servicing costs and fiscal deficit risks.
- Transparency issues, including allegations that the National Assembly added over ₦6.9 trillion in undisclosed projects, raising concerns about fiscal governance.

These factors underscore the urgency and significance of the AGF trying to rein in unsustainable spending practices.

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What’s happening? The AGF has halted fund releases to MDAs, pending proper certification via warrants and compliance with procurement laws.
Why? To control errant spending, enforce financial discipline, and ensure expenditure aligns with legal frameworks.
What’s at stake? Project delays, possible rollover of budget into 2026, and a test of Nigeria’s commitment to fiscal responsibility.