Uganda will withdraw from the African Nations Championships (CHAN) because of a row over government funding, the president of the Federation of Uganda Football Associations has announced.

Moses Hassim Magogo, who is also a member of the Ugandan parliament, said pulling out of the tournament – which is scheduled to begin in Algeria on 13 January – was “sad”.

“We are left with no further option but to withdraw from CHAN finals because the [Ministry of Finance] has not provided the funds as appropriated by parliament,” he wrote on Twitter.

“The sanctions to Uganda will affect the future if we don’t take the hard decision now. Sorry for the players and coaches who qualified the team but it is the moment to face the reality.”

Next year’s CHAN is due to feature 18 teams so if Uganda do pull out it will leave organisers the Confederation of African Football (Caf) needing a replacement at short notice – or with 17 teams in an already unusual format.

Caf has been contacted for comment.

The finals, which are for locally-based players, are set to have five groups; three of which will have four nations, while the other two will be comprised of just three teams.

It means the top two from the four-team groups will be joined in the quarter-finals by the winners of the other two pools.

Uganda were drawn in a four-team group alongside hosts DR Congo, Ivory Coast and Senegal.

Title-holders Morocco will be targeting winning the CHAN trophy for the third successive time, while Madagascar will make a historic first appearance at the finals.

CHAN 2022 group draw

Group A: Algeria (hosts), Libya, Ethiopia, Mozambique.

Group B: DR Congo, Uganda, Ivory Coast, Senegal.

Group C: Morocco (holders), Sudan, Madagascar, Ghana.

Group D: Mali, Angola, Mauritania.

Group E: Cameroon, Congo, Niger.

Top two from Groups A, B and C and winners of Groups D and E qualify for quarter-finals.