The Senate Committee on Finance has threatened to withhold budgetary allocation for the Office of the Accountant-General of the Federation (AGF) in the 2026 budget over the alleged failure to release funds to ministries, departments and agencies (MDAs) for project execution.
The Chairman of the Committee, Sani Musa (APC, Niger East), issued the threat when the Accountant-General, Shamseldeen Ogunjimi, appeared before it on Thursday to defend the proposed 2026 budget for his office.
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Mr Musa faulted the unfriendly disposition of the AGF’s office towards lawmakers.
He urged Mr Ogunjimi to conduct himself in a manner that would foster better working relations with the National Assembly.
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He warned that the committee and the National Assembly would not consider the AGF’s budget until lawmakers were satisfied with his conduct and assurances.
“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 through expected assurances from you.
“One of the issues that must be urgently resolved is the envelope budgeting system being used by the federal government on a yearly basis, but not producing desired results, requiring alternative models like a performance-based one,” he said.
MDAs complain
Since the beginning of President Bola Tinubu’s administration, heads of several MDAs have repeatedly complained about the non-release or partial release of funds appropriated for their ministries and agencies.
Some agencies reported that only half of their appropriations were released, while others said the funds released accounted for less than a quarter of their approved budgets. These complaints have persisted since 2023.
Ongoing budget defence sessions at the National Assembly have consistently reflected similar concerns, with many MDAs lamenting that inadequate fund releases have significantly affected their productivity.
The Office of the Accountant-General of the Federation is responsible for disbursing appropriated funds to MDAs in line with Nigeria’s Financial Act.
Senators raise concerns
During the meeting, Gombe Central Senator, Danjuma Goje, blamed the Accountant-General for the poor performance recorded by MDAs under the 2024 and 2025 budgets.
Mr Goje, a former governor, said lawmakers were embarrassed by the slow pace of project execution across MDAs.
“Here at the National Assembly, we have never seen contractors bombarding us on a weekly basis for intervention on non-payment of executed contracts,” he said.
The senator added that lawmakers had expected increased revenue following the removal of fuel subsidy and the stabilisation of the foreign exchange market.
He questioned why the government was still citing a lack of funds.
“Impression given to us and Nigerians by the government is that with the removal of fuel subsidy and harmonisation of the forex market, there will be more revenue or more money. Where is the money now? Why are contractors owed? And why was there zero allocation for capital votes of most of the MDAs in 2025?” he queried.
Similarly, Katsina South Senator, Muntari Dandutse, questioned why revenue-generating agencies reportedly exceeding their targets had not translated into sufficient funds to settle contractors.
“Even the introduced centralised payment system is not helping matters at all. The system is very compromised and seriously affecting the integrity of the government,” he said.
Several other senators expressed similar concerns and urged the Accountant-General to be proactive in addressing the situation.
AGF’s defence
In his response, Mr Ogunjimi told lawmakers that his office had been unable to disburse funds to MDAs due to insufficient funds in the government’s treasury.
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“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, because I must have the funds before I can disburse.
“I also want to remind us that ways and means used in the past for such funding are no more for the good of the nation’s economy,” he added.
After the exchanges, the committee went into a closed-door session with the Accountant-General.
