2026 Budget Defence: Senate Interogates AGF Over N28trn Revenue, Zero Capital Allocation to MDAs
The Senate Committee on Finance on Thursday put the Accountant General of the Federation AGF Dr Shamseideen Ogunjimi under intense scrutiny over what lawmakers described as poor budget implementation, zero capital allocation to most Ministries Departments and Agencies MDAs in 2025 and delays in payment to contractors.
This as made known during the defence of the Office of the Accountant General’s 2026 budget proposal. Senators were seen openly expressing frustration over what they termed embarrassing fiscal management and a dysfunctional centralised payment system.
Chairman of the Committee Senator Sani Musa Niger East in his opening remarks accused the AGF’s office of being unfriendly to the committee and warned that the panel would not consider the office’s budget until it receives satisfactory assurances.
“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 better for Nigerians,” Musa said.
He identified the envelope budgeting system as a major structural problem arguing that it has failed to deliver expected results over the years.
“One of the issues that must be urgently resolved is the envelope budgeting system being used yearly which is not producing desired results. We need to begin to look at alternatives such as a performance based budgeting model,” he added.
Senator Danjuma Goje Gombe Central told the AGF that both the National Assembly and Nigerians are deeply embarrassed by what he described as poor budget implementation since 2024.
“Here at the National Assembly we have never seen contractors bombarding us weekly for intervention over non payment of executed contracts,” Goje said.
He questioned the government’s revenue position following major fiscal reforms.
“The impression given to Nigerians is that with the removal of fuel subsidy and the harmonisation of the forex market more revenue would accrue. Where is the money now Why are contractors owed And why was there zero allocation for capital votes of most MDAs in 2025” he asked.
Senator Muntari Dandutse Katsina South raised concerns over reports that revenue generating agencies remitted about N28 trillion yeti contractors remain unpaid and capital projects unfunded.
“If N28 trillion was generated what happened to the money Why are 85 per cent of contractors being owed and why was there zero allocation for capital expenditure for most MDAs in 2025” he queried.
He also criticised the Centralised Payment System introduced by the federal government describing it as compromised and detrimental to the integrity of public finance administration.
“The system is not helping matters at all. It is seriously affecting the integrity of government operations,” 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 sharp remarks urging the AGF to advise President Bola Tinubu on the need to guard against fiscal sabotage and systemic leakages.
Responding Dr Ogunjimi attributed the crisis largely to indiscriminate contract awards by MDAs without confirmed funding.
He said the development necessitated a directive banning MDAs from awarding contracts without cash backing.
“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 when funds are available. I must have the funds before I can disburse,” he said.
He acknowledged that there were operational challenges with the Centralised Payment System noting that some of the issues were not anticipated at inception but are currently being addressed to ensure seamless operation.
The AGF also reminded lawmakers that the federal government no longer relies on the Ways and Means facility previously used to plug funding gaps describing its discontinuation as necessary for macroeconomic stability.
“I also want to remind us that the Ways and Means used in the past for such funding is no more for the good of the nation’s economy,” he added.
Following the heated public exchange the committee went into a closed door session with the AGF for further critical engagement.
The outcome of the executive session was not immediately disclosed but indications suggest that the committee may withhold consideration of the AGF’s 2026 budget proposal pending clearer explanations on revenue flows, capital allocations and contractor payments.
