The Senate Committee on Finance has initiated a high stakes inquiry into the Office of the Accountant General of the Federation (OAGF) following a heated budget defense session regarding the non release of capital funds and a massive backlog of unpaid contractors.
Led by Senator Sani Musa (Niger East), the Committee expressed grave concern over the disconnect between the ₦28 trillion reportedly generated by revenue agencies and the “zero capital allocations” currently facing several Ministries, Departments, and Agencies (MDAs) in the 2025 fiscal cycle.
During the session, the Accountant General of the Federation (AGF), Dr. Shamsedeen Ogunjimi, faced intense questioning from lawmakers who described the current state of budget implementation as a threat to government credibility.
Key points of contention raised by the Committee included:
The Funding Paradox: Senators questioned why, despite the removal of fuel subsidies and forex harmonization intended to boost liquidity, the government has failed to fund capital votes.
Contractor Backlog: Senator Danjuma Goje (Gombe Central) noted an unprecedented surge in contractors seeking legislative intervention over unpaid executed contracts.
Centralized Payment System: Lawmakers labeled the current payment framework “compromised” and “flawed,” alleging it has worsened payment delays rather than streamlining them.
Budgeting Models: Chairman Sani Musa called for an end to the “envelope budgeting” system, advocating for a performance based framework to ensure tangible results for Nigerians.
“We are not going to take your budget until we are satisfied that your office is ready to make things work for Nigerians,” Senator Musa declared, describing the OAGF’s current disposition as “unfriendly” to national progress.
In his defense, Dr. Ogunjimi attributed the financial strain to MDAs awarding contracts without confirmed cash backing. He revealed that the Federal Government has since issued a directive banning the award of contracts unless funds are strictly available.
“I must have the funds before I can disburse,” Ogunjimi stated, adding that the government has moved away from “Ways and Means” financing (central bank borrowing) to protect the long term health of the economy. He acknowledged the “operational challenges” of the Centralized Payment System but assured the Committee that corrective measures are being implemented.
The public session concluded with the Committee moving into a closed door session for “further critical engagement” regarding the whereabouts of the reported ₦28 trillion revenue and the fate of the OAGF’s 2025 budget proposal
The Senate has signaled that it will not approve further spending until a clear roadmap for fiscal transparency and capital project funding is established.
