Concerns Raised Over ₦15.88 Billion Budget Allocation to Auditor-General's Office

The Public Accounts Committee (PAC) of the House of Representatives has expressed discontent with the proposed funding for the Office of the Auditor- General for the Federation (OAuGF). They caution that constant financial limitations on this key audit office may threaten efforts against corruption and diminish public accountability.

The committee highlighted these issues during a discussion regarding the Auditor-General’s budget proposal for the year 2026 at the National Assembly on Wednesday.

The proposed allocation of ₦15.88 billion for the OAuGF is approximately 0.027 percent of the expansive ₦58.4 trillion federal budget, a figure the lawmakers deem insufficient given the Office's constitutional duty to audit over 1,000 Ministries, Departments, and Agencies (MDAs), along with other government- funded bodies.

Members of the committee regard the financial provision as inadequate in light of the sweeping responsibilities of the Auditor-General's Office.

Chairman of the Committee, Bamidele Salam (PDP, Osun), remarked that having such limited financial support would make it unrealistic to expect the Auditor-General's Office to effectively monitor a national budget as vast as ₦58.4 trillion. He shared that past funding struggles had adversely impacted the operations of the OAuGF. He noted that only five out of about 100 Nigerian foreign missions were audited in recent years due to insufficient resources.

Moreover, only four percent of the capital allocation approved for the Office's 2025 budget was released, severely restricting its operational capacity.

The breakdown for the 2026 budget proposal indicates that ₦5.3 billion is allocated for personnel costs, ₦5.6 billion for overhead expenses, and ₦4.8 billion for capital projects. Inadequate and delayed fund disbursements, particularly for capital expenditures, are expected to obstruct the Office's ability to enhance its technology, strengthen digital systems, and recruit and retain skilled personnel.

Mr. Salam affirmed the necessity for autonomy in financial management to safeguard the independence of audit institutions, noting that global standards from the International Organization of Supreme Audit Institutions (INTOSAI) advocate for sufficient and stable funding for such bodies to perform their roles free from undue influence.

He warned that weakening oversight institutions through insufficient funding could lead to diminished transparency in public financial administration, linking this to the broader issues of corruption that plague the nation.

Funding insufficiently supports oversight organizations, yielding institutional failures that facilitate corruption and financial mismanagement, according to Mr. Salam. He urged the federal government and relevant entities to ensure appropriate funding for the OAuGF, emphasizing that strengthening audit institutions is crucial in safeguarding public resource management while preventing waste.

In his summary of the 2025 budget performance, Auditor-General Shaakaa Chira indicated that operational challenges stemmed from poor and delayed funding release. He explained that these financial constraints left gaps in the Office's ability to fulfill its legal mandates and planned activities for the preceding year.

Mr. Chira pointed out that only five foreign missions were subjected to auditing during 2025 due to inadequate funding, disregarding the comprehensive scrutiny required for such overseas operations. He indicated that while ₦653 million had been set aside for auditing foreign missions that year, only ₦371 million was spent, resulting in an unspent balance of ₦282 million, which accounts for 56 percent of the total funds released.

Although ₦3.4 billion was originally proposed for auditing foreign missions in 2026, the Budget Office approved a budget ceiling of ₦633,849,824. This dramatic reduction, according to Mr. Chira, significantly cripples the Office's operational capabilities, especially in technological advancements and audit expansions.