Budget: Senate grills AGF over zero capital allocation to MDAs, non-payment of executed contracts

Senate Grills Accountant General Over Budget Crisis

The Nigerian Senate Committee on Finance recently subjected the Accountant General of the Federation (AGF), Dr. Shamseideen Ogunjimi, to intense questioning over troubling fiscal issues.

Lawmakers expressed deep concern about the zero capital allocations to many ministries, departments, and agencies (MDAs), as well as the non-payment of contractors who had already executed government projects.

The session was marked by tension and frustration. Committee Chairman Senator Mohammed Sani Musa criticized the AGF’s office for its unfriendly attitude toward the legislature and insisted that the current “envelope budgeting system” was failing. He urged a shift toward performance-based budgeting to ensure accountability and tangible results.

Senator Danjuma Goje highlighted the embarrassment caused by poor budget implementation since 2024, noting that contractors were besieging the National Assembly weekly over unpaid contracts. He questioned why, despite increased government revenue from subsidy removal and foreign exchange harmonization, MDAs still received zero capital allocations in 2025.

Other senators, including Muntari Dandutse, Abdul Ningi, Asuquo Ekpenyong, Adams Oshiomhole, Aminu Abbas, and Patrick Ndubueze, echoed similar concerns. Dandutse pointed out that despite reports of ₦28 trillion generated by revenue agencies, 85 percent of contractors remained unpaid, and the centralized payment system was undermining government credibility.

In his defense, Dr. Ogunjimi attributed the crisis to indiscriminate contract awards by MDAs without available funding. He explained that his office could only disburse funds when they were available, stressing that the “Ways and Means” financing method previously used was no longer sustainable for the economy. He acknowledged flaws in the centralized payment system but assured lawmakers that corrective measures were underway.

The committee later entered a closed-door session with the AGF to deliberate further on the matter, signaling the gravity of the fiscal challenges facing Nigeria’s governance and budgetary framework.