Jane Salihu
The Senate on Thursday raised alarm over growing contractor debts and zero capital releases to several government agencies, as lawmakers grilled the Accountant-General of the Federation (AGF), Dr. Shamsedeen Ogunjimi, over Nigeria’s worsening budget implementation record.
The lawmakers, during the 2026 budget defence session of the Senate Committee on Finance, expressed frustration over what they described as weak treasury management, delayed fund releases, and systemic bottlenecks in the Centralised Payment System (CPS), warning that the situation was crippling public projects nationwide.
Chairman of the committee, Senator Sani Musa (Niger East), accused the Office of the Accountant-General of operating with an unfriendly posture towards legislative oversight, insisting that the committee would not approve the budget without assurances of reforms.
“We are not going to take your budget until we are satisfied that your office is ready to do things that will make governance work for Nigerians,” Musa said, calling for an alternative to the envelope budgeting system, which he said had failed to deliver results.
Senator Danjuma Goje of Gombe Centralized lamented what he described as embarrassing budget performance since 2024, noting that lawmakers are increasingly approached by unpaid contractors seeking intervention.
“The government told Nigerians that subsidy removal and till 8 forex reforms would generate more revenue. Where is the money? Why are contractors still being owed, and why did most MDAs receive zero capital allocation in 2025?” Goje queried.
Similarly, Senator Muntari Dandutse of Katsina South questioned reports that revenue agencies generated about ₦28 trillion while contractors remained unpaid, describing the Centralised Payment System as compromised and damaging to government credibility.
Other lawmakers, including Senators Abdul Ningi, Asuquo Ekpenyong, Adams Oshiomhole, Aminu Abbas, and Patrick Ndubueze, warned that sabotage within the system could derail the Tinubu administration’s reform agenda.
Responding, Ogunjimi blamed indiscriminate contract awards by MDAs without secured funding for the mounting liabilities, noting that the federal government had issued directives banning contract approvals without confirmed funds.
He admitted operational challenges with the Centralised Payment System but said corrective measures were underway to ensure efficiency.
“As Accountant-General, I can only disburse funds when they are available. We must also remember that Ways and Means financing used in the past is no longer an option for the sake of economic stability,” he said.
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