The Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, has advised the National Assembly to revisit Nigeria’s contract execution framework by allowing ministries, departments and agencies (MDAs) to once again receive and manage project funds directly.

Fagbemi told lawmakers that the earlier decentralised system under which MDAs handled procurement and payments worked better than the current centralised arrangement that places contract processing largely with the Office of the Accountant-General of the Federation.

He argued that the existing structure is weighed down by administrative hurdles and delays, noting that empowering MDAs to control their project funds would improve efficiency and limit undue influence in contract awards.

The AGF made the remarks while appearing before the Senate Committee on Judiciary, Human Rights and Legal Matters to defend the Ministry of Justice’s 2026 budget proposal.

“The old system is better. That is the best. You don’t need to know anybody before your allocations are released.

The current system is plagued with so many difficulties, I don’t want to say complexities,” Fagbemi said.

Nigeria’s contract execution debate has long revolved around two models: the former decentralised approach and the current centralised payment system coordinated through the Office of the Accountant-General.

Under the previous arrangement, funds approved by the National Assembly were released straight to MDAs, which then conducted procurement and executed projects within their budgetary limits. Accounting officers in each MDA oversaw contract awards and payments, subject to checks by institutions such as the Bureau of Public Procurement, the Auditor-General and relevant legislative committees.

Supporters of that model say it enabled quicker decision-making, reduced payment bottlenecks and allowed agencies to plan and implement projects more effectively within the fiscal year.