The Minister of Education, Dr. Tunji Alausa, has appealed to the Office of the Accountant General of the Federation (OAGF) for urgent financial intervention to improve the operations of Unity Schools and overall efficiency within the ministry.
Speaking in Abuja on Wednesday during an official visit by the Accountant General of the Federation, Mr. Shamsudeen Ogunjimi, Alausa expressed concern over delayed overhead payments and feeding allocations to Unity Schools. He revealed that the ministry last received overhead funding in March and school feeding funds in April, leaving schools under severe financial pressure.
“We’re going through a rough patch. Principals are under pressure from contractors who are blackmailing them over unpaid contracts. In fact, I had to delay school resumption in some Unity Schools due to fears of insufficient food supply,” he said.
The minister called for the fast-tracking of payments and proposed a quarterly release model to provide a more stable financial structure for schools. He also advocated for a review of the current bottom-up cash management system and suggested decentralising financial approvals. According to Alausa, transactions below ₦500 million should be approved at the ministry level, while those under ₦100 million can be handled by agencies.
“You’re dealing with a country of over 220 million people. The federal government is a major driver of the economy. Instead of routing even minor payments through your office, consider allowing ministries and agencies to handle lower-value transactions,” he advised.
In response, Ogunjimi acknowledged the ministry’s concerns and pledged to prioritise funding for Unity Schools and overhead releases, recognising the education ministry’s national importance. He agreed with the proposal for termly rather than monthly disbursements and asked the ministry’s Director of Finance and Accounts to submit a formal request to that effect.
“We will prioritise the Ministry of Education. Even when other MDAs face funding delays, we will ensure Education receives its overhead on time,” Ogunjimi said.
He also addressed the strain caused by the current bottom-up cash plan, which allows MDAs to begin implementing budgets once approved by the National Assembly. While describing the policy as progressive in intent, he admitted it had put pressure on the financial system due to Nigeria’s fiscal constraints.
“The fund itself is not the problem. If not for the ongoing fiscal challenges, this would be a sound policy. But the current deficit makes implementation difficult,” he explained.
Ogunjimi disclosed that the Minister of Finance has established a high-level committee to review the policy, with a more practical framework expected soon. He also noted that the centralised budget documentation process has overwhelmed the OAGF, as all agencies are required to upload their financial records.
“Our capacity is overstretched. Agencies uploading every document has slowed us down. Lower-value contracts should be handled at the MDA level to ease this burden,” he said.
Elijah Adeyemi
