By Nathaniel Zaccheaus, Abuja
The Senate on Thursday put the Accountant-General of the Federation (AGF), Dr Shamsedeen Ogunjimi, on the spot over the fate of a reported N28 trillion revenue and the alarming absence of capital allocations to several Ministries, Departments and Agencies (MDAs) in the 2025 budget.
At a heated session of the Senate Committee on Finance, lawmakers refused to gloss over what they described as glaring contradictions in the nation’s fiscal records, confronting the AGF with complaints of unpaid contractors, stalled projects, and a controversial Centralised Payment System blamed for worsening delays.
From the outset, the atmosphere signalled trouble.
Chairman of the Committee, Senator Sani Musa (Niger East), told Ogunjimi in unmistakable terms that the committee was dissatisfied with his office’s posture and would not approve his budget until critical concerns were addressed.
“We are not going to take your budget until we are satisfied that your office is ready to do things that will make things work for Nigerians,” Musa declared.
He described the existing envelope budgeting system as ineffective and in urgent need of reform, arguing that it had failed to deliver meaningful outcomes.
He said, “One of the issues that must be urgently resolved is the envelope budgeting system being used by the federal government every year, but it does not produce the desired results.
We need to consider an alternative model like performance-based budgeting,” he said.
The grilling intensified when Senator Danjuma Goje (Gombe Central) described the implementation of the 2024 and 2025 budgets as “embarrassing,” citing the growing wave of contractors seeking intervention from lawmakers over unpaid jobs.
“Here at the National Assembly, we have never seen contractors bombarding us every week for intervention over non-payment of executed contracts,” Goje said.
He questioned the widely publicised claim that the removal of fuel subsidy and the harmonisation of the foreign exchange market had significantly increased government revenue.
“The impression given to Nigerians is that with subsidy removal and forex harmonisation, there is more revenue. Where is the money now? Why are contractors owed? And why is there zero allocation for capital votes of most MDAs in 2025?” he asked.
Senator Muntari Dandutse (Katsina South) pressed further, seeking clarification on the N28 trillion reportedly generated by revenue agencies.
“We were told that N28 trillion was generated, yet 85 per cent of contractors are being owed, and most MDAs have zero allocation in their 2025 capital budgets. What happened to the N28 trillion?” he queried.
Dandutse also criticised the Centralised Payment System introduced by the federal government, alleging that it had compounded administrative bottlenecks.
“The system is very compromised and seriously affecting the integrity of government,” he said.
Other senators, including Abdul Ningi (Bauchi Central), Asuquo Ekpenyong (Cross River South), Adams Oshiomhole (Edo North), Aminu Abbas (Adamawa Central), and Patrick Ndubueze (Imo North), joined the debate, warning that the trend of unpaid contracts and stalled projects risked undermining public confidence in the fiscal framework of the administration.
They urged the AGF to properly advise President Bola Tinubu and guard against what they described as possible internal sabotage within the financial system.
Lawmakers maintained that the absence of capital allocations for several MDAs in the 2025 budget painted a troubling picture and called for urgent corrective measures to prevent further economic strain.
Responding to the barrage of criticisms, Ogunjimi defended his office, insisting that the root of the crisis lay in indiscriminate contract awards by MDAs without confirmed funding.
According to him, many agencies awarded contracts without securing cash backing, thereby creating a backlog of unpaid obligations.
He said the federal government had since issued a directive banning MDAs from awarding contracts without available funds.
“As the Accountant-General of the Federation, my office is expected to disburse funds to relevant agencies at the appropriate time, but that can only be done if the funds are available. I must have the funds before I can disburse,” he explained.
On the Centralised Payment System, Ogunjimi acknowledged operational challenges but assured lawmakers that corrective steps were underway.
“Though challenges are being faced with the operation of the Centralised Payment System, they are being addressed for seamless operation,” he said.
He also reminded the committee that the controversial “Ways and Means” financing previously used to plug funding gaps was no longer in operation.
“I also want to remind us that ‘Ways and Means’ used in the past for such funding is no more, for the good of the nation’s economy,” he added.
However, his explanations failed to calm the frayed nerves in the chamber, as senators insisted that Nigerians were more concerned about visible outcomes than technical clarifications.
With several questions still unanswered, particularly regarding the alleged N28 trillion in revenue and the rationale for zero capital allocations to key MDAs, the committee eventually entered a closed-door session with the AGF for further deliberations.
The outcome of the engagement is expected to determine whether the Accountant-General’s budget proposal will secure legislative approval and could significantly influence the broader debate on fiscal transparency, budget performance and accountability under the current administration.
