The Accountant-General of the Federation, Shamseldeen Ogunjimi, faced tough questioning on Thursday as the Senate Committee on Finance refused to review the 2026 budget proposal of his office, citing poor capital releases and a growing backlog of unpaid contractor obligations.
Lawmakers accused the Office of the Accountant-General, which oversees the management and disbursement of public funds, of failing to provide adequate releases to Ministries, Departments and Agencies (MDAs), leading to stalled projects across the country. According to the committee, many MDAs received little or no capital funding in 2025, forcing contractors to abandon projects and grapple with mounting debts.
Chairman of the committee, Senator Sani Musa, criticised the Treasury House for what he described as an uncooperative posture and warned that the Senate would not consider the AGF’s budget until clear assurances were given. He also faulted the continued use of the envelope budgeting system, arguing that it has failed to deliver results and should be replaced with a performance-based model.
Several senators expressed concern that despite government claims of increased revenue following fuel subsidy removal and foreign exchange reforms, contractors remain unpaid. They questioned reports of trillions of naira generated by revenue agencies while projects nationwide suffer from funding gaps.
The committee noted that outstanding liabilities to contractors now exceed ₦2.2 trillion, affecting critical sectors, statutory agencies and even INEC. Lawmakers also criticised the Centralized Payment System, saying it has created bottlenecks rather than improving efficiency.
In response, Ogunjimi blamed the crisis on MDAs awarding contracts without proper cash backing and insisted that his office can only disburse funds that have been released. He acknowledged challenges with the payment system but said steps are being taken to expand and improve its operations.
Following the exchanges, the committee went into a closed-door session with the AGF, reiterating that the 2026 budget of his office would not be considered until issues surrounding poor releases and unpaid liabilities are resolved.
