Fagbemi faults centralised project payment system, seeks return to direct funding of MDAs
The Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi (SAN), has criticised the current centralised payment system for federal capital projects, calling for a return to the old
The Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi (SAN), has criticised the current centralised payment system for federal capital projects, calling for a return to the old funding model where ministries, departments and agencies (MDAs) directly receive and manage their allocations.
Fagbemi made the call during the 2026 budget defence session of the Ministry of Justice before the Senate Committee on Judiciary on Wednesday.
According to him, the former system ensured timely release of funds and reduced bureaucratic hurdles.
“The old system is better because you don’t need to know anybody before your allocation is released,” he said.
He lamented that the present centralised payment framework, coordinated by the Ministry of Finance, is plagued by delays and administrative bottlenecks, which have hampered project execution across MDAs.
“The current system is plagued with so many difficulties. I don’t want to say complexities,” the minister added.
Fagbemi disclosed that the Ministry of Justice recorded zero performance in its 2025 capital budget, despite releases of N869 million, which he said were not cash-backed.
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He explained that widespread non-execution of capital projects by MDAs compelled President Bola Ahmed Tinubu to approve the rollover of 70 per cent of unimplemented 2025 capital projects into the 2026 budget, while the remaining 30 per cent has been affected by delayed fund releases and procedural constraints.
Chairman of the Senate Committee on Judiciary, Senator Adeniyi Adegbonmire (SAN), expressed concern over persistent funding delays, noting that several lawmakers shared the view that the old system was more effective.
“The delay is dangerous, especially when it affects the justice sector, which is at the heart of our social coalition. When the justice sector is hamstrung through bureaucratic bottlenecks, the system is put under pressure,” he said.
He urged the Federal Government to adopt a funding mechanism that responds swiftly to the operational needs of the justice sector.
