CBIAMEC Raises Concern Over Centralized Payment System

The Civil Society Budget Implementation Assessment, Monitoring and Evaluation Committee (CBIAMEC) has raised concerns over the Federal Government’s centralized payment finalization system operated by the Office of the Accountant General of the Federation (OAGF), warning that it is slowing budget implementation across Ministries, Departments and Agencies (MDAs).

In separate letters addressed to the Minister of Finance, the OAGF, and other relevant authorities in Abuja, the group said the current arrangement under the Government Integrated Financial Management Information System (GIFMIS) has created operational bottlenecks affecting project execution nationwide.

The committee acknowledged the importance of financial oversight and accountability in public finance management but argued that the centralization of payment finalization has introduced delays that undermine efficiency in governance.

According to the group, MDAs previously operated a more decentralized structure in which Accounting Officers processed and finalized approved payments within established financial controls and audit frameworks.

It said the recent shift has resulted in delayed payments, cash flow constraints and rising project costs.

CBIAMEC further stated that the situation has negatively affected infrastructure delivery and social services, including health, education and other development programmes.

The group also referenced provisions of the Financial Regulations 3101, 3129 and 3130, which assign expenditure responsibility to Accounting Officers, as well as Sections 16 and 20 of the Public Procurement Act 2007, which emphasize timely and efficient procurement processes.

To address the challenges, the committee called for a comprehensive review of the centralized payment finalization structure and its impact on MDA operations.

It also demanded the restoration of payment finalization authority to MDAs under the GIFMIS platform, alongside the establishment of clear timelines for payment approvals to prevent delays.

Other recommendations include strengthening digital audit trails, improving compliance monitoring and engaging civil society organizations, contractors and procurement experts in the reform process.

CBIAMEC said such measures would help restore efficiency while maintaining transparency and accountability in public financial management.

The group emphasized that aligning financial authority with statutory responsibilities would improve budget implementation and enhance service delivery across the country.