Budget Defence: Senate grills AGF over zero capital allocations, unpaid contracts

—As Nigeria for Women Programme targets 25 beneficiaries

By Haruna Salami

The Accountant-General of the Federation (AGF), Dr. Shamseideen Ogunjimi, faced intense scrutiny from the Senate Committee on Finance on Thursday during a budget defence session marked by sharp exchanges.
From the opening statement of the Committee Chairman, Senator Sani Musa (Niger East), to a barrage of questions from members, the session proved challenging for the AGF, as lawmakers expressed displeasure over poor fund releases to Ministries, Departments and Agencies (MDAs), statutory bodies, and what they described as a problematic Centralized Payment System affecting contractors.
In his remarks, Senator Musa told the AGF that the committee was dissatisfied with the disposition of his office toward legislative oversight and insisted that the relationship must improve in the interest of Nigerians.
“We will not consider your budget until we are satisfied that your office is prepared to take necessary steps that will make the system work effectively for Nigerians, backed by clear assurances from you,” Musa said.
He identified the envelope budgeting system currently in use by the Federal Government as one of the issues requiring urgent review, noting that it has failed to deliver expected outcomes and may need to be replaced with a performance-based model.
Senator Danjuma Goje (Gombe Central), in his contribution, said both the Senate and Nigerians were embarrassed by what he described as poor budget implementation since 2024.
“At the National Assembly, we have never experienced a situation where contractors approach us weekly seeking intervention over unpaid executed contracts,” he said.
Goje questioned the government’s revenue position, noting that the removal of fuel subsidy and harmonisation of the foreign exchange market were projected to boost revenue.
“The impression given is that there is increased revenue following these reforms. Where is the money? Why are contractors still unpaid? And why is there zero capital allocation for most MDAs in the 2025 budget?” he asked, describing the situation as “embarrassing and baffling.”
Similarly, Senator Muntari Dandutse (Katsina South) queried reports that revenue-generating agencies remitted about N28 trillion, yet contractors remain unpaid and most MDAs recorded zero capital allocation in the 2025 budget.
“If N28 trillion was generated, what happened to the money?” he asked.
Dandutse also criticised the Centralized Payment System, arguing that it has not improved the situation and is negatively affecting the integrity of government processes.