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The Accountant-General of the Federation (AGF), Dr. Shamsedeen Ogunjimi, came under intense scrutiny on Wednesday during a budget defence session before the Senate Committee on Finance.
Lawmakers expressed frustration over the 2025 budget, which allocated zero capital funds to many Ministries, Departments, and Agencies (MDAs), as well as persistent delays in paying contractors for executed projects. They also raised concerns about inefficiencies in the centralized payment system.
Committee Chairman Senator Sani Musa (APC, Niger East) criticised the AGF’s office, warning:
“We are not going to consider your budget until we are satisfied that your office is ready to work in a way that delivers results for Nigerians.”
He questioned the continued reliance on the envelope budgeting system, arguing for a shift toward performance-based budgeting.
Senator Danjuma Goje (APC, Gombe Central) noted that contractors frequently approach the National Assembly over unpaid contracts, despite expectations that government revenue would improve after subsidy removal and foreign exchange harmonisation.
“Contractors are owed, and most MDAs have zero capital allocation in 2025. These are issues that require clarification,” Goje said.
Senator Muntari Dandutse (APC, Katsina South) demanded explanations on reports that revenue-generating agencies realised ₦28 trillion, yet contractors remain unpaid and capital allocations were cut. He also flagged inefficiencies in the centralised payment system.
Other senators, including Abdul Ningi (PDP, Bauchi Central), Asuquo Ekpenyong (APC, Cross River South), Adams Oshiomhole (APC, Edo North), Aminu Abbas (APC, Adamawa Central), and Patrick Ndubueze (APC, Imo North), stressed the need for stronger financial oversight and improved budget implementation.
Responding, AGF Ogunjimi attributed the challenges to MDAs awarding contracts without confirmed funding.
“As Accountant-General of the Federation, my office disburses funds to relevant agencies when resources are available. Disbursement can only occur when funds have been realised,” he explained.
He added that reliance on “Ways and Means” financing is no longer being applied, citing broader fiscal and economic considerations. Ogunjimi acknowledged operational challenges with the centralised payment system but assured senators that reforms are underway to improve efficiency.
The committee later went into a closed-door session with the AGF.
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