The Federation Accounts Allocation Committee has approved the disbursement of N7.895bn for the operations of the Secretariat of the National Economic Council for the 2025 fiscal year, despite widespread complaints from government agencies about inadequate funding and low capital releases.
Documents obtained by Saturday PUNCH revealed that the funds were drawn from the 0.5 per cent Stabilisation Fund Account as of December 2025 and approved by the Chairman of the council and Vice President, Kashim Shettima.
The NEC Secretariat serves as the administrative and technical arm of the council, coordinating meetings between the Federal Government and state governors, providing policy research and advisory support, monitoring implementation of council resolutions, and facilitating collaboration on key economic and fiscal reforms.
According to the document, the amount represents the full allocation approved for the operations of the NEC Secretariat in 2025. The closing balance in the Stabilisation Fund Account stood at N54.27bn as of December 2025.
The document titled Statement of 0.5 per cent Stabilisation Fund Account as at December 2025 indicated that the transfer followed a recommendation from the revenue-sharing committee during its statutory meeting.
It read in part: “The sum of N7,895,516,050.00 was approved by the Chairman of the National Economic Council for the operations of the NEC Secretariat for the year 2025 from the Stabilisation Fund. The closing balance in the account stood at N54,274,642,496.53.”
The development comes amid concerns raised by several Ministries, Departments and Agencies about shrinking fiscal space and limited budget releases, which they say have hindered the implementation of key government programmes.
During the 2026 budget defence at the National Assembly, several MDAs warned lawmakers that low releases in 2025 created a significant gap between approved budgets and actual funding.
The Federal Ministry of Health and Social Welfare disclosed that capital releases in 2025 were extremely low. The Minister of Health, Muhammad Ali Pate, told lawmakers that only N36m was released from the N218bn approved for capital projects.
According to the minister, the funding gap weakened healthcare infrastructure and slowed the execution of critical interventions at a time when Nigeria faces increasing public health challenges and rising demand for services.
Similarly, the Federal Ministry of Transportation reported that only about one per cent of its N256.73bn 2025 allocation was released, amounting to roughly N2.57bn. The ministry warned that the shortfall stalled several rail, road and marine infrastructure projects across the country.
The Federal Ministry of Interior also disclosed that it recorded zero capital releases in both 2024 and 2025, raising concerns over infrastructure funding for immigration services, correctional facilities and internal security operations.
In the social sector, the Federal Ministry of Women Affairs lamented poor funding and disbursement patterns, warning that programmes targeting vulnerable women, children and internally displaced persons had been affected.
Funding challenges were also reported in the security sector. The House Committee on National Security and Intelligence described allocations to intelligence agencies as inadequate.
The sector includes institutions such as the Office of the National Security Adviser and the Department of State Services, which lawmakers said have struggled with delayed releases and limited operational funding.
Lawmakers warned that such constraints could undermine efforts to combat terrorism, insurgency and organised crime.
Oversight institutions also reported funding challenges. The Office of the Auditor-General for the Federation disclosed that only about four per cent of its capital allocation for 2025 was released, limiting its ability to effectively audit government institutions.
The office is responsible for auditing more than 1,000 government entities but reportedly lacks sufficient resources to deploy modern audit technology and expand oversight operations.
Other agencies, including the Nigeria Correctional Service and the Public Complaints Commission, also appealed for increased funding to improve their operations.
The approval of funds for the NEC Secretariat has sparked debate within policy circles, as several agencies continue to struggle with funding shortfalls.
Some stakeholders have questioned whether the government is prioritising the NEC Secretariat over other MDAs that require resources to implement public programmes and infrastructure projects.
Analysts warn that the persistent gap between approved budgets and actual releases weakens the effectiveness of public spending and raises concerns about fiscal sustainability.
Nigeria’s fiscal space remains under pressure due to rising debt service obligations, weak revenue growth and increased demand for social spending following the removal of fuel subsidy under the administration of Bola Tinubu.
The National Economic Council, chaired by the Vice President and comprising state governors, serves as a key platform for coordinating economic policy between the Federal Government and subnational administrations.
The Stabilisation Fund is one of the special accounts within the federation revenue framework designed to cushion fiscal shocks and support strategic interventions.
Under the revenue-sharing formula, 0.5 per cent of federally collected revenue is deducted and saved in the fund to support economic stability and emergency interventions.
While the NEC Secretariat relies on such allocations to coordinate meetings, policy implementation and engagement with state governments, the latest development has intensified the debate over fiscal prioritisation as Nigeria navigates tightening revenues and rising public expenditure demands.
