The Senate's Finance Committee has issued a warning that it may withhold budget allocations for the Accountant-General of the Federation (AGF) for the 2026 fiscal year. This action stems from what the committee perceives as the AGF's failure to release funds to various ministries, departments, and agencies (MDAs) essential for executing projects.
Chairman of the committee, Sani Musa, representing the All Progressives Congress from Niger East, delivered this ultimatum during a hearing on Thursday when AGF Shamseldeen Ogunjimi presented the proposed budget for his office.
Mr. Musa criticized the AGF's office for its perceived uncooperative stance towards lawmakers and encouraged Ogunjimi to improve interactions with the National Assembly.
He asserted that without satisfactory conduct and assurances from the AGF, the committee and the broader National Assembly would not consider the Accountant- General's budget for approval. "We are not going to take your budget until we are convinced that your office is prepared to make necessary changes to ensure proper funding for projects that benefit Nigerians," he stated.
Musa also pointed out that the current envelope budgeting system employed yearly by the federal government has not yielded the expected results, pushing for a shift to a performance-based budgeting model.
Concerns have arisen from several MDAs about the inadequate release of budget allocations since President Bola Tinubu's administration began. Reports indicate that many agencies received only partial funding, with some getting as little as a quarter of what was allocated by the budget.
As budget defense sessions progress in the National Assembly, similar grievances have been echoed among various MDAs, which claim that insufficient fund releases are gravely undermining their operational efficiency.
The AGF's Office is tasked with the responsibility of disbursing funds to MDAs according to the stipulations of Nigeria's Financial Act.
During the meeting, Senator Danjuma Goje from Gombe Central placed the blame for MDAs' lack of performance under the 2024 and 2025 budgets squarely on the Accountant-General. He highlighted the frustration among lawmakers regarding the slow implementation of projects at MDAs.
"In the National Assembly, we have not seen a significant uptick in contractor requests for assistance regarding non-payment of contracts, which indicates something is amiss," he remarked.
Goje emphasized that following the removal of the fuel subsidy and the stabilization of the foreign exchange market, increased revenue was anticipated, thus questioning the continued claims of funding shortages by the government.
Katsina South Senator Muntari Dandutse echoed similar sentiments, inquiring why revenue generation agencies achieving their targets have not resulted in enough funds to pay contractors. He protested that the current centralized payment system seems ineffective and undermines government integrity.
A number of other senators shared their concerns and urged the Accountant- General to take action to remedy these issues.
In defense, Mr. Ogunjimi attributed the hurdles in fund disbursement to a lack of sufficient funds available in the government's treasury.
"Although disbursing funds to the relevant agencies is a responsibility of the AGF, this can only happen when funds are available, as I require the cash beforehand to facilitate disbursements," he remarked. He also mentioned that past funding methods, now unsustainable, must evolve for the economic betterment of the nation.
Following the discussions, the committee entered a closed-door session with the Accountant-General to further deliberations.
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