Senate berates AGF over 2025 budget releases, zero capital votes, unpaid contracts

Senate berates AGF over 2025 budget releases, zero capital votes, unpaid contracts
By Idun Maximus

The Senate Committee on Finance, yesterday, subjected the Accountant-General of the Federation (AGF), Dr. Shamseideen Ogunjimi, to intense scrutiny over what lawmakers described as poor budget releases, zero capital allocation to several Ministries, Departments and Agencies (MDAs), and the growing crisis of unpaid executed contracts.
From the outset of the budget defence session, senators vented their frustration over what they termed systemic failures in fund disbursement and a centralised payment framework that has allegedly worsened contractors’ hardship and stalled project delivery across the country.
Chairman of the committee, Sani Musa, set the tone in his opening remarks, warning that the Senate would not proceed with consideration of the AGF’s budget until concrete assurances were given on reforms.
“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”, Musa declared.
He criticised the federal government’s continued reliance on envelope budgeting, describing it as ineffective and in urgent need of review.
“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 performance-based ones,” he said.
Adding to the barrage of criticism, Danjuma Goje said the Senate and Nigerians were increasingly embarrassed by the persistent failures in budget implementation since 2024.
“Here at the National Assembly, we have never seen contractors bombarding us on a weekly basis for intervention on non-payment of executed contracts,” Goje lamented.
He questioned the government’s revenue narrative following recent economic reforms, asking: “Impression given to us and Nigerians by the government is that with removal of subsidy and harmonisation of the forex market, 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?”
Goje described the situation as both “embarrassing and baffling,” stressing that the current state of budget execution was unacceptable.
On his part, Senator Muntari Dandutse (APC, Katsina South) expressed disbelief that despite reports of N28 trillion in revenue generation by government agencies, contractors were still unpaid and capital allocations to MDAs had virtually dried up.
“Why N28 trillion was reportedly generated by revenue agencies and yet 85% of contractors are being owed and zero allocation for most of the MDAs in the 2025 capital component budget? What happened to the N28 trillion?” he queried.
Dandutse also faulted the centralised payment system, insisting that it had worsened the crisis.
“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.
Other senators, including Abdul Ningi, Asuquo Ekpenyong, Adams Oshiomhole (APC, Edo North), Aminu Abbas, and Patrick Ndubueze, also weighed in with strong remarks. Ndubueze urged the AGF to advise President Bola Tinubu to “look inward” to prevent sabotage within the system.
Responding to the barrage of criticism, Dr. Ogunjimi attributed the crisis largely to what he called indiscriminate contract awards by MDAs without corresponding funds to back them.
He said the development prompted a government directive, barring MDAs from awarding contracts without verified funding availability. He acknowledged challenges associated with the centralised payment system but assured lawmakers that corrective measures were already underway.
“Though challenges being faced with operation of the Centralised Payment System were not envisaged, they are being addressed for seamless operation,” he said.
The AGF further explained that his office could only release funds that were actually available.
“Yes, as the Accountant General of the Federation, my office is expected to disburse funds to relevant agencies at appropriate time, but that can only be done if the fund is available because I must have the fund before I can disburse,” he stated.
He also reminded senators that the controversial ‘Ways and Means’ financing option 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 longer for the good of the nation’s economy,” Ogunjimi added.
Following the public session, the committee proceeded into a closed-door meeting with the AGF for what it described as more detailed and critical engagement on the issues raised.