Senate grills Accountant-General over zero capital allocations, unpaid contracts and centralized payment system.

By Iyojo Ameh

The Accountant General of the Federation (AGF), Dr. Shamseideen Ogunjimi, came under intense scrutiny from the Senate Committee on Finance during a budget defence session on Thursday.
From the opening remarks by the Committee Chairman, Senator Sani Musa (Niger East), to a barrage of comments and questions directed at the AGF, the session proved heated, focusing on poor fund releases to Ministries, Departments and Agencies (MDAs), statutory bodies, and what lawmakers described as a frustrating Centralized Payment System for contractors.

In his opening statement, Senator Sani Musa bluntly told the AGF that his office’s disposition toward the committee was unfriendly and must change in the interest of Nigerians.
“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 through the assurances we expect from you.
“One of the issues that must be urgently addressed is the envelope budgeting system being adopted yearly by the federal government, which has not produced the desired results, hence the need to consider alternatives such as a performance-based model,” he said.
In his contribution, Senator Danjuma Goje (Gombe Central) told the AGF that the Senate, and Nigerians at large, are embarrassed by the poor budget implementation recorded since 2024.
“At the National Assembly, we have never experienced a situation where contractors besiege us weekly seeking intervention over unpaid executed contracts.
“The impression given to Nigerians is that with the removal of fuel subsidy and the harmonization of the foreign exchange market, more revenue would be available. Where is the money now? Why are contractors being owed? And why was there zero allocation for capital votes for most MDAs in the 2025 budget?” he asked.
He described the current state of budget implementation as both embarrassing and baffling.
Senator Muntari Dandutse (Katsina South) also questioned why revenue agencies reportedly generated N28 trillion, yet 85 per cent of contractors remain unpaid and most MDAs received zero allocation for capital expenditure in the 2025 budget.
“What happened to the N28 trillion?” he queried.
He further criticized the Centralized Payment System, stating that it has not improved the situation.
“Even the introduced Centralized Payment System is not helping matters. The system is highly compromised and seriously undermining the integrity of government,” he said.
Other senators, including Abdul Ningi (Bauchi Central), Asuquo Ekpenyong (Cross River South), Adams Oshiomhole (Edo North), Aminu Abbas (Adamawa Central), and Patrick Ndubueze (Imo North), also made strong remarks, urging the AGF to advise President Bola Tinubu to look inward and guard against possible sabotage.
Responding, the AGF attributed the current challenges to indiscriminate contract awards by many MDAs without corresponding funds, which he said led to the directive banning MDAs from awarding contracts without available funding.
He acknowledged that certain challenges associated with the Centralized Payment System were not anticipated but assured lawmakers that steps are being taken to ensure smoother operations.
“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 happen when funds are available. I must have the funds before I can disburse them.
“I also want to remind us that the ‘Ways and Means’ approach previously used for such funding is no longer in place, in the interest of the nation’s economic stability,” he said.
The committee subsequently moved into a closed-door session with the AGF for further critical engagement.