The Senate has warned that it may refuse to approve the 2026 budget proposal for the Office of the Accountant-General of the Federation (OAGF) over what it described as poor fund releases to Ministries, Departments, and Agencies (MDAs) and the non-payment of contractors.
The warning was issued on Thursday during a budget defence session with the Accountant-General, Shamseldeen Ogunjimi, before the Senate Committee on Finance.
Chairman of the committee, Senator Sani Musa, said lawmakers would not consider the 2026 proposal until they receive satisfactory assurances on improved budget implementation.
“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,” Musa said.
Lawmakers Raise Concerns
The committee cited widespread complaints about inadequate releases under the 2025 budget and outstanding liabilities dating back to 2024. Senators expressed frustration that poor implementation has disrupted government activities and left contractors unpaid.
According to the committee, more than N2.2 trillion is owed to contractors—a situation lawmakers described as unacceptable.
Senator Danjuma Goje (Gombe Central) questioned the management of public funds, particularly revenues generated following the removal of fuel subsidy and earnings reported by government-owned enterprises that reportedly exceeded targets.
“Where is the money?” Goje asked, demanding greater transparency on how increased federal revenues have been utilised.
He also noted that the National Assembly has received numerous complaints from contractors seeking intervention over unpaid contracts, calling the situation embarrassing for both the legislature and the country.
Lawmakers further disclosed that some security agencies have raised concerns about inadequate funding due to delayed or insufficient releases.
Call for Budget Reform
The committee urged a review of the Federal Government’s envelope budgeting system, arguing that it has not delivered the expected results. Senators recommended a shift toward performance-based budgeting to improve accountability and efficiency.
The Senate maintained that consideration of the Accountant-General’s 2026 budget would remain on hold until clear explanations are provided and assurances given on timely fund releases and improved implementation.
Accountant-General Responds
In his response, Ogunjimi appealed to the committee to reconsider its stance, explaining that his office can only disburse funds formally released to it.
He stressed that delays were not entirely within his control and disclosed that the government’s payment platform had experienced technical challenges. According to him, the platform is currently being expanded and upgraded to enhance efficiency and capacity.
What you should know
The Senate is pushing back against what it sees as systemic failures in budget implementation, with over N2.2 trillion reportedly owed to contractors.
Lawmakers are demanding accountability for increased government revenues and questioning delays in releasing funds to MDAs. They are also calling for reforms to the current budgeting model.
The Accountant-General, however, insists that his office disburses only what is officially released and says technical upgrades are underway to address payment challenges.
