The Nigerian Senate is taking a firm stand on fiscal accountability as it threatens to approve a zero allocation for the Office of the Accountant-General of the Federation in the 2026 federal budget. The warning follows widespread concerns over poor budget releases to Ministries, Departments, and Agencies, commonly known as MDAs, and the growing backlog of unpaid contractors across the country.
The Senate Committee on Finance issues the warning during a budget defence session with the Accountant-General of the Federation, Shamseldeen Ogunjimi. Lawmakers express deep dissatisfaction with what they describe as weak budget implementation, delayed fund releases, and mounting financial liabilities.
The committee, chaired by Senator Sani Musa, declines to consider the 2026 budget proposal submitted by the Office of the Accountant-General. Senators cite persistent complaints from MDAs regarding inadequate releases under the 2025 budget, as well as outstanding obligations carried over from the 2024 fiscal year.
According to members of the committee, effective budget performance is critical to national development. However, they argue that poor execution of approved budgets continues to disrupt government operations, stall infrastructure projects, and undermine public confidence in fiscal management.
Lawmakers stress that they will not proceed with reviewing the 2026 budget proposal until they receive credible assurances that fund releases will improve and that outstanding liabilities will be addressed.
A major point of concern raised during the session is the reported ₦2.2 trillion owed to contractors. Senators describe the figure as alarming and unacceptable, emphasizing that delayed payments are affecting businesses, employment, and economic stability.
Contractors across various sectors reportedly approach the National Assembly seeking intervention over unpaid contracts. Lawmakers say the situation is embarrassing and damaging to Nigeria’s economic credibility, particularly as the federal government continues to emphasize infrastructure development and economic growth.
Senator Danjuma Goje of Gombe Central questions the management of public funds, especially in light of increased revenues generated from the removal of fuel subsidy and improved earnings reported by government-owned enterprises.
He calls for transparency regarding the utilization of these funds, asking critical questions about the state of the national treasury and how additional revenues are being allocated. Lawmakers demand clarity on whether the expected fiscal gains from subsidy removal are translating into improved liquidity and timely payments.
Beyond contractors, the committee notes that some security agencies also raise concerns about inadequate funding due to delayed releases. Senators warn that insufficient funding for critical institutions could have implications for national security and public service delivery.
The debate also extends to Nigeria’s envelope budgeting system. Lawmakers argue that the current framework is not delivering expected outcomes in terms of efficiency, accountability, and performance. They call for an urgent review of the system and propose a transition toward performance-based budgeting.
According to the committee, a performance-driven model would ensure that fund releases are tied to measurable outcomes, enhancing transparency and reducing inefficiencies in public financial management.
The Senate maintains its position that the 2026 budget proposal for the Office of the Accountant-General will not be considered until satisfactory explanations are provided. Lawmakers insist on concrete commitments to improve budget implementation, accelerate fund disbursement to MDAs, and clear outstanding contractor payments.
In response, Accountant-General Shamseldeen Ogunjimi appeals to the committee to reconsider its decision. He explains that his office can only disburse funds that are formally released through established fiscal processes. According to him, certain delays are beyond the direct control of his office.
He further informs lawmakers that the federal government’s payment platform experiences technical challenges in recent months. However, he states that the platform is currently undergoing expansion and technological upgrades aimed at improving efficiency, transparency, and capacity for large-scale transactions.
The Accountant-General emphasizes the need for collaboration between fiscal authorities, the National Assembly, and other government institutions to strengthen Nigeria’s public finance system. He assures the committee that efforts are ongoing to address bottlenecks affecting fund releases and contractor payments.
The unfolding standoff between the Senate and the Office of the Accountant-General highlights broader concerns about fiscal discipline, budget transparency, and public sector accountability in Nigeria. As the 2026 budget cycle approaches, stakeholders across the public and private sectors are closely monitoring developments.
Economic analysts note that efficient budget execution is essential for sustaining economic growth, maintaining investor confidence, and ensuring that government policies translate into tangible benefits for citizens.
The Senate’s threat of a zero allocation underscores growing legislative oversight over Nigeria’s public financial management system. With trillions of naira in unpaid obligations and concerns over budget implementation, the coming weeks are expected to shape critical decisions regarding the 2026 federal budget.
As discussions continue, Nigerians await clear assurances that public funds will be managed transparently, contractors will receive payments, and government agencies will have the resources needed to function effectively.
We will continue to follow updates on the Senate budget defence proceedings and bring you the latest developments.
