… Orders closed-door probe, demands revised 2026 estimates as MDAs decry cash squeeze
ABUJA – The Senate on Thursday came down hard on the Accountant-General of the Federation (AGF), Shamsedeen Ogunjimi, over the non-release of 2025 budgetary allocations to ministries, departments and agencies (MDAs), even as it queried the budget performance of the Nigerian Bulk Electricity Trading (NBET) Plc and the Fiscal Responsibility Commission (FRC), directing both agencies to submit revised 2026 estimates for further scrutiny.
The twin issues dominated proceedings at the ongoing budget defence sessions before the Senate Committee on Finance at the National Assembly.
Chairman of the committee, Senator Sani Musa, in his opening remarks, expressed strong displeasure at what he described as the unfriendly disposition of the Accountant-General’s office towards the committee, insisting that the attitude must change in the overall interest of effective governance.
He warned that the non-release of appropriated funds was crippling operations and service delivery across MDAs, lamenting that nearly all agencies that had appeared before various Senate committees reported similar financial constraints.
Describing the situation as alarming and harmful to public administration, the committee consequently postponed consideration of the Accountant-General’s budget proposal and resolved to hold a closed-door session to examine the persistent delays in funds disbursement.
Responding to the lawmakers, Ogunjimi said the current financial challenges were inherited from previous administrations. He stressed that his office disbursed funds only after receiving proper authorisation and when resources were available.
He attributed the delays to poor tax remittances by some MDAs, indiscriminate award of contracts without securing funding provisions and inadequate national revenue inflow, which he said had constrained timely releases.
While maintaining that the financial system remained functional despite prevailing liquidity pressures, the AGF advocated stronger tax compliance, improved revenue generation and coordinated fiscal reforms to ensure smoother budget implementation.
He disclosed that indiscriminate contract awards by many MDAs without available funds had contributed significantly to the current challenges, prompting directives banning contracts without secured funding.
Ogunjimi also explained that some of the difficulties arising from the operation of the centralised payment system were unforeseen, but assured lawmakers that corrective measures were ongoing.
“Yes, as the Accountant-General, my office disburses funds only when resources are available, because I must first receive funds before making any payment,” he said, adding that the “ways and means” previously used for emergency government funding had been discontinued in the national interest.
In the same vein, the committee raised concerns over the budget performance of NBET and the Fiscal Responsibility Commission.
Managing Director of NBET, Mr. Akinawo Johnson, told lawmakers that the agency could not fully utilise its 2025 budget due to late approval and release of funds.
According to him, the budget was passed toward the end of the fiscal year, leaving insufficient time to execute planned expenditures.
Johnson disclosed that although N858 billion was appropriated for NBET in 2025, only N60 million was released and the agency had yet to access the funds.
He added that the unutilised allocation had been rolled over into the proposed 2026 budget, now put at N601 billion, to maintain continuity of critical operations and financial obligations within the power sector.
Members of the Senate Committee expressed concern over the figures presented and instructed the agency to submit a detailed breakdown of its 2026 proposal to the committee secretariat before Monday for further examination.
In a related session, Managing Director of the Fiscal Responsibility Commission, Mr. Charles Abana, also appeared before the committee to defend the commission’s budget estimates.
Reiterating the need for transparency, accuracy and fiscal discipline in budget submissions, Senator Musa directed both NBET and the FRC to review their proposals and return with revised documents.
The committee reaffirmed its commitment to ensuring proper budget implementation and accountability across federal agencies through strengthened legislative oversight.
