NEC Secretariat Gets N7.9bn Amid Funding Shortfalls for Agencies

The Federation Accounts Allocation Committee (FAAC) approved the disbursement of N7.895bn as funding for the operations of the Secretariat of the National Economic Council in 2025, despite widespread complaints by Ministries, Departments, and Agencies over inadequate funding and low capital releases.

Documents obtained showed that the transfer was drawn from the 0.5 per cent Stabilisation Fund Account as of December 2025 and was approved by the Chairman of the council and Vice President, Kashim Shettima.

The secretariat serves as the administrative and technical backbone of the council, coordinating meetings between the Federal Government and state governors, providing policy research and advisory support, monitoring implementation of resolutions, and facilitating intergovernmental collaboration on key economic and fiscal reforms across the country.

The document indicated that the amount represented the full allocation approved for the operations of the NEC Secretariat for the 2025 fiscal year, with the closing balance in the stabilisation account put at N54.27bn as of the same period.

According to the document titled Statement of 0.5 per cent Stabilisation Fund Account as at December 2025, the transfer was effected following the recommendation of the revenue-sharing committee at 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 disclosure comes at a time when several MDAs have raised concerns about what they described as shrinking fiscal space and inadequate releases, which they say are affecting the delivery of key government programmes, resulting in a widening gap between approved budgets and actual releases.

Several ministries and agencies raised strong concerns during the 2026 budget defence at the National Assembly, warning that low funding in 2025 undermined project execution and service delivery, as reported by the media.

The Federal Ministry of Health and Social Welfare disclosed that capital releases in 2025 were extremely low. Minister Muhammad Ali Pate told lawmakers that only N36m was released from the N218bn approved for capital projects in the year.

The minister said the situation weakened the healthcare infrastructure and slowed the execution of critical interventions. Analysts noted that the development comes at a time when Nigeria faces rising public health challenges, workforce migration, and increasing 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 major rail, road, and marine projects nationwide.

The Federal Ministry of Interior also disclosed that it recorded zero capital releases in 2024 and 2025, raising concerns over infrastructure for immigration, correctional services, and internal security operations. Lawmakers described the situation as unsustainable and urged urgent reforms.

In the social sector, the Federal Ministry of Women Affairs lamented low allocations and poor disbursement patterns. The ministry warned that programmes aimed at vulnerable women, children, and internally displaced persons were affected.

Beyond the civil ministries, the security and intelligence sector also raised concerns over poor funding.

The House Committee on National Security and Intelligence described allocations to the intelligence community as abysmal, warning that funding levels did not reflect the Federal Government’s commitment to national security.

The sector, which includes the Office of the National Security Adviser, the Department of State Services, and other agencies, reportedly struggled with delayed releases and limited operational funding.

Lawmakers said the pattern undermines efforts to tackle terrorism, insurgency, and organised crime.

Oversight institutions were not spared. The Office of the Auditor-General for the Federation disclosed that only about four per cent of its 2025 capital allocation was released, severely limiting its ability to audit government institutions.

Lawmakers noted that the office, responsible for scrutinising over 1,000 government entities, could not deploy modern technology or expand oversight activities due to funding constraints.

Similarly, other agencies such as the Nigeria Correctional Service and the Public Complaints Commission also appealed for increased funding to improve operations.

The approval of funds for the NEC Secretariat has sparked fresh debate within policy circles, as many government agencies continue to struggle with delayed releases and shortfalls in capital allocations.

The wave of complaints has led some stakeholders to question whether the government is prioritising the secretariat over other MDAs, many of which say they lack adequate resources to execute their mandates.

The recurring 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 President Bola Tinubu.

The NEC, chaired by the Vice President and comprising state governors, serves as a key platform for coordinating economic policies between the Federal Government and subnational administrations.

The Stabilisation Fund is one of the special accounts managed under the federation revenue framework 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.

The NEC Secretariat, which coordinates meetings, policy implementation, and engagements with states, relies on such allocations to function.

But this development highlights the growing debate over fiscal prioritisation in Nigeria, as the government seeks to balance macroeconomic stability, service delivery, and economic reforms amid tightening revenues.