Senate grills A-GF over zero capital allocation to MDAs
The Accountant-General of the Federation (AGF), Shamsedeen Ogunjimi, yesterday came under intense questioning in the Senate over zero capital allocations to many MDAs, non-payment for executed contracts and the deployment
The Accountant-General of the Federation (AGF), Shamsedeen Ogunjimi, yesterday came under intense questioning in the Senate over zero capital allocations to many MDAs, non-payment for executed contracts and the deployment of the Centralised Payment System.
Opening remarks by the Chairman of the Senate Committee on Finance, Mohammed Musa, signposted a tough session for the AGF.
Musa told Ogunjimi that the attitude of his office towards the committee was unfriendly, a view echoed by other members as they put the Accountant-General under pressure.
“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 expected from you,” Musa said.
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“One of the issues that must be urgently resolved is the envelope budgeting system used yearly by the Federal Government, which has failed to produce desired results. We need to consider an alternative model such as performance-based budgeting,” he added.
A member of the committee, Senator Danjuma Goje, said the Senate was embarrassed by poor budget implementation over the past two years.
“Here at the National Assembly, we have never seen contractors bombarding us weekly for intervention over non-payment for executed contracts.
“The impression being given to Nigerians is that with subsidy removal and forex harmonisation, more revenue is accruing to the government. Where is the money? Why are contractors being owed? And why did most MDAs record zero capital allocations in 2025?” he asked.
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Goje described the situation as “very embarrassing and baffling.”
Senator Muntari Dandutse questioned why N28 trillion was reportedly generated by revenue agencies while about 85 per cent of contractors were owed, and most MDAs were left without capital allocations last year.
“Even the Centralised Payment System introduced is not helping matters. The system is compromised and seriously affecting the integrity of the government,” Dandutse said.
Other members of the committee - Abdul Ningi, Asuquo Ekpenyong, Adams Oshiomhole, Aminu Abbas and Patrick Ndubueze - also interrogated the AGF, urging him to advise the President against internal sabotage.
Responding, Ogunjimi said many MDAs embarked on indiscriminate contract awards without available funding. He acknowledged challenges with the Centralised Payment System but said they were being addressed.
“As Accountant-General of the Federation, my office is expected to disburse funds to relevant agencies, but that can only happen if the funds are available. I must have funds before I can disburse,” he said.
“I also want to remind us that the ‘Ways and Means’ financing used in the past is no longer good for the nation’s economy,” Ogunjimi added.
