BUDGET DEFENCE: SENATE THREATENS ZERO ALLOCATION TO ACCOUNTANT-GENERAL’S OFFICE OVER UNPAID CONTRACTS
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By: Sefiu Ajape
The Senate has threatened to withhold approval of the 2026 budget proposal for the Office of the Accountant-General of the Federation over the poor release of funds to Ministries, Departments and Agencies (MDAs) and the non-payment of contractors.
The warning was issued on Thursday by the Senate Committee on Finance during a budget defence session with the Accountant-General of the Federation, Shamseldeen Ogunjimi.
The committee, chaired by Senator Sani Musa, declined to consider the 2026 budget proposal, citing widespread complaints about inadequate releases under the 2025 budget and outstanding liabilities carried over from 2024.
“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,” he said.
Lawmakers expressed frustration over what they described as poor budget implementation, which they said has disrupted government operations and left contractors unpaid.
According to the committee, more than N2.2 trillion is owed to contractors — a situation senators described as unacceptable.
One lawmaker, Senator Danjuma Goje (Gombe Central), questioned the management of public funds, particularly revenues generated from the removal of fuel subsidy and income reported by government-owned enterprises that reportedly surpassed their targets.
According to him, “Where is the money?” as he demanded clarity on the state of the nation’s treasury and the utilisation of increased revenues realised by the Federal Government.
Senator Goje further stated that the National Assembly has been inundated with complaints from contractors seeking intervention over unpaid contracts, describing the development as embarrassing for both the legislature and the country.
The committee also noted that security agencies have raised concerns over inadequate funding due to poor releases.
Lawmakers called for an urgent review of the Federal Government’s envelope budgeting system, arguing that it has failed to deliver the expected results. They proposed a transition to a performance-based budgeting model to strengthen accountability and efficiency.
The Senate maintained that it would not consider the Accountant-General’s 2026 budget proposal until satisfactory explanations and assurances are provided regarding improved budget implementation and timely fund releases.
In his defence, the Accountant-General appealed to the committee to reconsider its decision not to entertain the 2026 budget proposal for his office.
Ogunjimi explained that his office could only disburse funds formally released to it, stressing that the delays were not entirely within his control.
He told the committee that the government’s payment platform had experienced technical challenges but is currently undergoing expansion and upgrades to enhance its capacity and efficiency.
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