The Senate, through its Committee on Finance, has threatened to refuse consideration and passage of the 2026 budget proposal for the Office of the Accountant-General of the Federation over persistent complaints of poor budget releases to Ministries, Departments and Agencies (MDAs), as well as the growing inability of government to settle outstanding liabilities owed to contractors.
The warning was issued on Thursday when the Accountant-General of the Federation, Shamseldeen Ogunjimi, appeared before the committee to defend his office’s 2026 budget proposal.
The committee, chaired by Senator Sani Musa, declined to consider the budget, expressing deep dissatisfaction with the office’s performance.
Lawmakers cited numerous complaints from government agencies, including the Nigerian Bulk Electricity Trading Company (NBET) and the Fiscal Responsibility Commission, regarding inadequate releases in2025 budget and unresolved liabilities carried over from 2024.
The poor releases, according to the senators, have contributed to government’s inability to pay over N2.2 trillion owed to contractors.
Senator Danjuma Goje questioned the whereabouts of funds generated from the removal of fuel subsidy and revenues from government-owned enterprises that had reportedly exceeded their targets.
He also expressed concern over zero capital allocations to many MDAs in the 2025 budget.
Statutory transfers, security agencies, and even the Independent National Electoral Commission (INEC) were said to be affected by the funding challenges.
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The committee also criticized the envelope budgeting system being used by the federal government, describing it as ineffective and calling for a transition to a performance-based budgeting model.
Senators argued that the current system has consistently failed to deliver desired results.
In his opening remarks, Senator Sani Musa told the Accountant-General that the attitude of his office toward the committee was unfriendly and needed to change in the interest of national development.
Lawmakers emphasized that urgent reforms were necessary to improve transparency and efficiency in fund disbursement.
Senator Goje noted that the National Assembly had been inundated with complaints from contractors seeking intervention over unpaid contracts, describing the situation as embarrassing for both the Senate and the country.
He questioned why contractors remained unpaid despite government claims of increased revenue following subsidy removal and forex harmonization.
Senator Muntari Dandutse expressed concern over reports that revenue agencies generated N28 trillion, yet about 85 per cent of contractors were still unpaid, and most MDAs recorded zero capital allocations in the 2025 budget.
He also criticized the Centralized Payment System, describing it as compromised and detrimental to government integrity.
Other lawmakers, including Senators Abdul Ningi, Asuquo Ekpenyong, Adams Oshiomhole, Aminu Abbas, and Patrick Ndubueze, urged the Accountant-General to advise President Bola Tinubu on the need to guard against possible sabotage within the system.
In his defence, Ogunjimi explained that his office could only disburse funds that were released and available.
He pointed out that the previous reliance on Ways and Means financing had been discontinued in the interest of the nation’s economic stability.
He also blamed indiscriminate contract awards by some MDAs without available funding, noting that this had contributed significantly to the current financial strain.
According to him, a directive had been issued banning MDAs from awarding contracts without confirmed funding.
The Accountant-General acknowledged operational challenges with the Centralized Payment System but assured lawmakers that efforts were underway to expand and improve the platform for seamless performance.
Following the heated exchanges, the committee moved into a closed-door session with the Accountant-General for further engagement.
(Editor: Ebuwa Omo-Osagie)
