SENATE GRILLS ACCOUNTANT-GENERAL OVER ₦28TN REVENUE

SENATE GRILLS ACCOUNTANT-GENERAL OVER ₦28TN REVENUE, ZERO CAPITAL ALLOCATIONS The Senate Committee on Finance on Thursday unleashed a blistering interrogation of the Accountant-General of the Federation (AGF), Dr. Shamseldeen Ogunjimi, over the handling of Nigeria’s public finances particularly the reported ₦28 trillion realised by revenue-generating agencies, yet zero capital budget allocations to many Ministries, Departments and Agencies (MDAs) and growing complaints of unpaid contractors.At a tense budget defence session, senators made clear their dissatisfaction with the AGF’s office over:
Zero capital releases for most MDAs in the 2025 budget stalling infrastructure and development projects.
A backlog of unpaid contract liabilities, with complaints from contractors nationwide. Allegations that revenue agencies had generated about ₦28 trillion, yet funds have not translated into capital funding or paid obligations.
Operational bottlenecks in the Centralised Payment System, introduced to streamline government disbursements but criticised as flawed.From the outset, Senator Sani Musa (Niger East), chairman of the Senate Committee on Finance, set the tone warning that the budget proposal from the Accountant-General’s office would not be taken up until lawmakers were satisfied with its performance and transparency. Senator Danjuma Goje (Gombe Central) expressed frustration at persistent contractor complaints about non-payment and described the continued narrative of improved revenue following subsidy removal and forex reforms as “baffling” when government agencies still record zero capital allocations. Senator Muntari Dandutse (Katsina South) questioned how roughly ₦28tn reportedly generated by revenue agencies had failed to translate into capital disbursements and contractor payments calling the situation “damaging to government credibility.” Other senators, including Abdul Ningi, Asuquo Ekpenyong, Adams Oshiomhole, Aminu Abbas, and Patrick Ndubueze, urged the AGF to advise President Bola Tinubu to guard against possible internal sabotage undermining fiscal operations.
Lawmakers lambasted the government’s Centralised Payment System, which was intended to enhance transparency and streamline fund disbursement, as instead creating bottlenecks that have slowed payments and undermined confidence in budget implementation. In his response, Dr. Ogunjimi defended his office, attributing the financial woes largely to indiscriminate award of contracts by MDAs without secured funding, which he said led to the backlog of unpaid liabilities. He noted that a directive had been issued barring MDAs from awarding contracts without confirmed cash backing. On the Centralised Payment System, he acknowledged operational challenges that were not initially envisaged but insisted that corrective steps were underway to improve performance. The AGF also stressed that the controversial “Ways and Means” financing mechanism, previously used to plug funding gaps, was no longer in use as part of efforts to stabilise the national economy. With tensions high and key questions on missing revenue and stalled capital allocations still unresolved, the finance committee moved into a closed-door session with the AGF for “further critical engagement” a meeting whose outcome could determine the fate of the AGF’s budget proposal and signal broader shifts in fiscal accountability and transparency.
The grilling highlights rigorous legislative oversight amid mounting public dissatisfaction over Nigeria’s budget performance, delayed project execution, and unpaid government liabilities. Lawmakers’ insistence on accountability reflects broader concerns about fiscal governance under the current administration and could presage reforms in how public funds are managed and disbursed in future budgets.