AGF Fagbemi Advocates for Old Payment System in Budget

During a budget defense session on Wednesday, Lateef Fagbemi, the Attorney General of Nigeria and Minister of Justice, called for a reversion to the old payment system for executed projects. He criticized the current centralized payment model, stating that it imposes numerous administrative challenges on various ministries, departments, and agencies (MDAs).

Fagbemi argued that the old model would allow MDAs to directly manage project funds, thereby enhancing efficiency and reducing the likelihood of favoritism in contract awards. He emphasized that the current system complicates the execution of contracts and creates bureaucratic bottlenecks in payment approvals.

The former decentralized model would enable MDAs to handle procurement processes and execute projects within the limits of their approved budgets, with oversight from relevant agencies such as the Bureau of Public Procurement and the Auditor General. Fagbemi's advocacy aims to streamline project management and improve responsiveness to project demands within fiscal years.