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By Lizzy Chirkpi
The Accountant-General of the Federation (AGF), Dr. Shamsedeen Ogunjimi, came under intense fire on Thursday as the Senate Committee on Finance grilled his office over the absence of capital allocations to several Ministries, Departments and Agencies (MDAs), rising unpaid contractual obligations, and growing concerns surrounding the Federal Government’s Centralised Payment System.
The confrontation unfolded during the AGF’s budget defence session, where senators expressed anger over what they described as poor fund releases, weak implementation of approved budgets, and a payment framework increasingly viewed as ineffective.
Opening the session, Committee Chairman Senator Sani Musa (Niger East) told the AGF that relations between his office and the committee had been strained and must improve for the sake of national progress.
“We are not going to take your budget until we are satisfied that your office is ready to do things that will make the system work for Nigerians,” Musa stated firmly.
He singled out the continued use of envelope budgeting as a major weakness in fiscal planning, noting that it has failed to deliver tangible results over the years.
“One of the issues that must be urgently resolved is the envelope budgeting system being used yearly without producing desired outcomes. We may need to consider alternatives such as a performance-based model,” he said.
Former Gombe State governor and senator representing Gombe Central, Danjuma Goje, described the situation as troubling and unprecedented, revealing that contractors now frequently seek legislative intervention over unpaid jobs.
“Here at the National Assembly, we have never seen contractors bombarding us weekly for intervention on non-payment of executed contracts,” Goje lamented.
He questioned the government’s financial position following the removal of fuel subsidy and the unification of the foreign exchange market.
“The impression given to Nigerians is that with subsidy removal and forex reforms, more revenue is available. Where is the money now? Why are contractors owed? And why was there zero allocation for capital votes of most MDAs in 2025?” he asked.
Senator Muntari Dandutse representing Katsina South cited reports indicating that revenue-generating agencies had realised about ₦28 trillion, yet capital spending remained stagnant.
“If ₦28 trillion was generated, what happened to the money?” he queried.
Dandutse also criticised the Centralised Payment System, alleging that it had been compromised and was undermining government accountability.
“Even the introduced Centralised Payment System is not helping matters at all. The system is very compromised and seriously affecting the integrity of government,” he said.
Several other lawmakers cautioned the AGF about possible internal sabotage as they urged him to strengthen fiscal discipline.
In his response, Dr. Ogunjimi blamed much of the problem on MDAs awarding contracts without securing confirmed funding, a practice he said prompted a directive banning such actions.
“Yes, 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,” he explained.
“I must have the funds before I can disburse.”
He further reminded the committee that the Federal Government had discontinued the use of the Central Bank’s “Ways and Means” financing in order to stabilise the economy.
While admitting that the Centralised Payment System initially faced operational hurdles, the AGF assured lawmakers that steps were being taken to correct the shortcomings and improve efficiency.
The committee later moved into a closed-door session with the AGF for deeper deliberations on the fiscal challenges raised.