The Accountant-General of the Federation (AGF), Shamseldeen Ogunjimi, faced intense scrutiny from the Senate yesterday over the lack of capital allocations for many MDAs, unpaid contracts, and challenges with the Centralised Payment System (CPS).
The session, led by Senate Committee on Finance Chairman Mohammed Musa, began with a stern warning that the committee would not consider the 2026 budget until the AGF provided assurances of improved budget management.
“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 for Nigerians through the assurances expected from you,” Musa said. He added that the government’s envelope budgeting system had failed to deliver results and suggested considering a performance-based budgeting model as an alternative.
Senator Danjuma Goje described the situation as “very embarrassing and baffling,” highlighting complaints from contractors over unpaid contracts despite expectations of increased revenue from subsidy removal and forex harmonisation. “Where is the money? Why are contractors being owed? And why did most MDAs record zero capital allocations in 2025?” he asked.
Senator Muntari Dandutse questioned the apparent disconnect between reported revenue generation of N28 trillion and the fact that about 85 per cent of contractors remained unpaid, while most MDAs received no capital allocations last year. He also criticized the CPS, describing it as compromised and damaging to government integrity.
Other committee members, including Abdul Ningi, Asuquo Ekpenyong, Adams Oshiomhole, Aminu Abbas, and Patrick Ndubueze, urged Ogunjimi to advise the President against internal sabotage within government agencies.
In response, Ogunjimi explained that many MDAs awarded contracts without available funding and acknowledged ongoing challenges with the CPS. “As Accountant-General of the Federation, my office is expected to disburse funds to relevant agencies, but that can only happen if the funds are available. I must have funds before I can disburse,” he said.
He further noted that the previous ‘Ways and Means’ financing mechanism is no longer suitable for the nation’s economy and that corrective measures are being implemented to address existing issues.
