By Joy Odor Reportcircle News | Abuja
Nigeria’s fiscal managers came under blistering fire on Thursday as the Senate Committee on Finance subjected the Accountant-General of the Federation (AGF), Dr. Shamsedeen Ogunjimi, to intense scrutiny over what lawmakers described as “embarrassing” budget implementation failures, zero capital allocations to most Ministries, Departments and Agencies (MDAs) in 2025, and mounting unpaid contractor claims.
The confrontation unfolded during the defence of the Office of the Accountant-General’s 2026 budget proposal but quickly morphed into a wider inquest into the Federal Government’s revenue flows and expenditure priorities.
At the centre of the storm: reports that revenue-generating agencies remitted about ₦28 trillion, yet capital projects remain stalled and contractors unpaid.
“We Will Not Take Your Budget”
Chairman of the Committee, Senator Sani Musa (Niger East), opened proceedings with a blunt warning, the AGF’s 2026 proposal would not be entertained without convincing explanations.
“We are not going to take your budget until we are satisfied that your office is ready to do things that will make governance work better for Nigerians,” Musa declared.
He identified the envelope budgeting framework as a structural flaw that has consistently failed to deliver results, urging a shift toward performance-based budgeting.
“One of the issues that must be urgently resolved is the envelope budgeting system being used yearly, which is not producing desired outcomes,” he said.
Contractors Besieging Lawmakers
Senator Danjuma Goje (Gombe Central) painted a stark picture of deteriorating fiscal credibility, revealing that contractors now flood the National Assembly weekly, seeking intervention over unpaid executed contracts.
“Here at the National Assembly, we have never seen contractors bombarding us weekly for non-payment,” Goje said. “This is very embarrassing.”
He questioned the government’s fiscal narrative following major reforms including fuel subsidy removal and foreign exchange harmonization which were expected to boost revenues.
“The impression given to Nigerians was that more revenue would accrue. Where is the money now? Why are contractors owed? Why was there zero allocation for capital votes of most MDAs in 2025?” he asked.
Senator Muntari Dandutse (Katsina South) sharpened the interrogation.
“If ₦28 trillion was generated, what happened to the money?” he demanded. “Why are 85 percent of contractors owed and why was there zero allocation for capital expenditure for most MDAs?”
Lawmakers described the situation as baffling, a paradox of rising reported revenues and shrinking development spending.
Beyond revenue questions, the committee criticised the federal government’s Centralised Payment System, with Dandutse branding it “compromised” and harmful to public finance integrity.
“The system is not helping matters at all. It is seriously affecting the integrity of government operations,” he said.
Other Senators including Abdul Ningi (Bauchi Central), Asuquo Ekpenyong (Cross River South), Adams Oshiomhole (Edo North), Aminu Abbas (Adamawa Central) and Patrick Ndubueze (Imo North) urged the AGF to advise President Bola Tinubu on the risks of fiscal sabotage and systemic leakages.
Responding, Ogunjimi shifted part of the blame to MDAs, accusing them of awarding contracts without confirmed funding.
“The directive became necessary because contracts were being awarded without cash backing,” he said.
“As Accountant-General, I am expected to disburse funds at the appropriate time but I must have the funds before I can disburse.”
He acknowledged operational challenges with the Centralised Payment System, noting that some glitches were unforeseen but are being addressed.
The AGF also defended the discontinuation of the Ways and Means facility previously used to bridge funding gaps describing its suspension as critical for macroeconomic stability.
“The Ways and Means used in the past is no more, for the good of the nation’s economy,” he said.
Following the heated exchanges, the committee moved into a closed-door session with the AGF.
While details of the executive meeting were not disclosed, signals from lawmakers suggest the Office of the Accountant-General’s 2026 budget proposal could face delays unless clearer explanations emerge regarding revenue flows, capital allocations and contractor liabilities.
For investors and contractors alike, the confrontation highlights a widening gap between headline revenue figures and tangible capital deployment, a disconnect that may weigh on infrastructure delivery, private sector liquidity and overall economic confidence.
As the 2026 budget cycle advances, the Senate’s demand is unequivocal: fiscal transparency must match fiscal reforms or legislative approval may not come easily.
