The Senate Committee on Finance has issued a stern rebuke to the Accountant-General of the Federation (AGF), Dr. Shamsedeen Ogunjimi, over the persistent non-release of 2025 budgetary allocations. The Committee warned that the lack of funding is “crippling” government operations and service delivery across all Ministries, Departments, and Agencies (MDAs).
During a high tension budget defense session, Committee Chairman Senator Sani Musa (Niger East) expressed strong displeasure at the OAGF’s “unfriendly disposition” toward legislative oversight. Consequently, the Committee postponed the consideration of the AGF’s own budget proposal, opting instead for a closed-door inquiry into the systemic delays in fund disbursement.
Responding to the Committee’s scrutiny, Dr. Ogunjimi attributed the current financial gridlock to inherited challenges and poor fiscal discipline within MDAs.
He highlighted several factors contributing to the crisis:
Unauthorized Contracts: Many MDAs awarded contracts without secured funding, leading to a backlog of unpaid obligations.
Revenue Shortfalls: Timely releases have been constrained by inadequate national revenue inflow and poor tax remittances by certain agencies.
End of “Ways and Means“: The AGF noted that the government has discontinued the use of Central Bank borrowing (Ways and Means) to plug gaps, prioritizing long-term economic stability.
“I must first receive funds before making any payment,” Ogunjimi stated, adding that corrective measures are underway to resolve unforeseen glitches in the Centralised Payment System.
The Committee also queried the Nigerian Bulk Electricity Trading (NBET) Plc and the Fiscal Responsibility Commission (FRC) regarding their 2025 budget performance and 2026 projections.
Acting Managing Director of NBET, Mr. Johnson Akinnawo, revealed a staggering disparity in funding. Despite an appropriation of ₦858 billion in 2025, the agency was only released ₦60 million, which it has yet to even access.
The Result: NBET has proposed a reduced ₦601 billion for 2026, rolling over unutilized allocations to maintain power sector stability.
Senate Directive: Lawmakers expressed concern over these figures and ordered NBET to submit a comprehensive breakdown of the 2026 proposal by Monday.
The FRC Managing Director, Mr. Charles Abana, was similarly directed to review and resubmit the commission’s budget estimates. Senator Musa emphasized that accuracy and fiscal discipline are non-negotiable for agencies tasked with monitoring the nation’s financial health.
The Senate Committee reaffirmed its resolve to use its oversight powers to ensure that the 2026 budget cycle does not repeat the implementation failures of the previous year. The Committee warned that “paper provisions” without cash backing will no longer be tolerated as the nation seeks to stabilize its economy.
