Budget: Senate Tackles Accountant General Over Zero Capital Allocation, Contractor Payment Delays

Accountant general of the federation (AGF), Dr Shamsedeen Ogunjimi, came under intense scrutiny on Thursday as the Senate Committee on Finance faulted zero capital allocations to most Ministries, Departments and Agencies (MDAs) and persistent delays in the payment of outstanding debt to some contractors of the federal government.

The heated exchange occurred during the budget defence session at the National Assembly, where lawmakers also raised concerns over the operation of the federal government’s Centralised Payment System.

Chairman of the Committee, Senator Sani Musa (Niger East), in his opening remarks, criticised what he described as an unfriendly disposition on the part of the AGF’s office toward the committee and warned that the Senate would not approve the budget without satisfactory explanations.

“We are not going to approve your budget until we are satisfied that your office is ready to implement processes that will work for Nigerians. One urgent issue is the envelope budgeting system, which has failed to deliver results. We need a performance-based alternative,” Musa said.

Senator Danjuma Goje (Gombe Central) decried what he called poor budget implementation since 2024, lamenting the increasing number of contractors seeking legislative intervention over unpaid contracts.

“Contractors bombard us weekly for intervention on non-payment of executed contracts. The government told Nigerians that removing the subsidy and harmonising forex would increase revenue. Where is the money? Why are contractors owed, and why is there zero allocation for most MDAs’ capital budgets in 2025?” Goje queried.

Similarly, Senator Muntari Dandutse (Katsina South) questioned reports that revenue agencies generated about N28 trillion, yet contractors remain unpaid, and capital votes for MDAs are largely unfunded.

He described the Centralised Payment System as compromised and detrimental to the integrity of government operations.

Other lawmakers, including Senators Abdul Ningi (Bauchi Central), Asuquo Ekpenyong (Cross River South), Adams Oshiomhole (Edo North), Aminu Abbas (Adamawa Central) and Patrick Ndubueze (Imo North), echoed concerns about inefficiencies and urged stronger accountability mechanisms to prevent what they termed systemic sabotage.

Responding, Dr Ogunjimi attributed the current funding challenges to indiscriminate contract awards by MDAs without adequate funding, prompting the government to issue directives prohibiting such practices.

He acknowledged operational challenges with the Centralised Payment System but assured the committee that corrective measures were being implemented to enhance its efficiency.

“Yes, my office is expected to disburse funds to agencies at the appropriate time, but disbursement can only happen when funds are available. I must have the funds before I can release them,” he said.

He added that the previous reliance on “Ways and Means” financing was no longer sustainable and had been discontinued in the interest of the nation’s economic stability.

Following the tense deliberations, the committee proceeded into a closed-door session with the AGF for further engagement.