Senate Grills Accountant-Normal Over N28tn Income, Zero Capital Allocations
The Senate on Thursday launched a blistering assault on the Accountant-Normal of the Federation (AGF), Dr. Shamsedeen Ogunjimi, over zero capital allocations to a number of Ministries, Departments and Businesses (MDAs) within the 2025 funds and mounting complaints of unpaid contractors throughout the nation.
At an explosive funds defence session of the Senate Committee on Finance, lawmakers accused the Workplace of the Accountant-Normal of irritating funds implementation, presiding over a controversial Centralised Cost System, and failing to elucidate how N28 trillion reportedly generated by income businesses has not translated into capital releases.
From the opening remarks of the Committee Chairman, Senator Sani Musa (Niger East), it was clear the AGF was in for a troublesome day.
Musa bluntly advised the AGF that his workplace’s disposition to the committee was “unfriendly” and should change within the curiosity of Nigerians.
“We’re not going to take your funds till we’re glad that your workplace is able to do issues that can make issues work for Nigerians,” Musa declared.
He recognized the envelope budgeting system as a serious concern, arguing that the yearly mannequin has did not ship outcomes and may give solution to a performance-based framework.
“One of many points that should be urgently resolved is the envelope budgeting system being utilized by the federal authorities on a yearly foundation however not producing desired outcomes.
“We have to think about an alternate mannequin like performance-based budgeting,” he mentioned.
However it was Senator Danjuma Goje (Gombe Central) who amplified the temper of the chamber, describing the state of funds implementation since 2024 as “embarrassing.”
“Right here on the Nationwide Meeting, we now have by no means seen contractors bombarding us on a weekly foundation for intervention over non-payment of executed contracts,” Goje mentioned.
He questioned the narrative that the elimination of gas subsidy and the harmonisation of the international alternate market would considerably enhance authorities income.
“The impression given to us and Nigerians is that with subsidy elimination and foreign exchange harmonisation, there may be extra income.
“The place is the cash now? Why are contractors owed? And why is there zero allocation for capital votes of many of the MDAs in 2025?” he requested.
In line with him, the state of affairs was each baffling and damaging to the credibility of presidency.
Senator Muntari Dandutse (Katsina South) raised the stakes additional, demanding a proof for the reported N28 trillion generated by income businesses.
“We had been advised that N28 trillion was generated, but 85 per cent of contractors are being owed and most MDAs have zero allocation of their 2025 capital budgets. What occurred to the N28 trillion?” he queried.
Dandutse additionally took a swipe on the Centralised Cost System launched by the federal authorities, describing it as deeply flawed.
“The system may be very compromised and critically affecting the integrity of presidency,” he mentioned, arguing that it has compounded fee delays somewhat than resolving them.
Different senators, together with Abdul Ningi (Bauchi Central), Asuquo Ekpenyong (Cross River South), Adams Oshiomhole (Edo North), Aminu Abbas (Adamawa Central), and Patrick Ndubueze (Imo North), made forceful interventions.
They urged the AGF to advise President Bola Tinubu to protect in opposition to what they described as potential inner sabotage undermining fiscal operations.
The lawmakers insisted that the mixture of unpaid contracts, stalled capital tasks and nil allocations to MDAs painted a troubling image of the 2025 funds framework.
Responding to the barrage of criticisms, Ogunjimi defended his workplace, attributing a lot of the disaster to indiscriminate contract awards by MDAs with out secured funding.
In line with him, the apply of awarding contracts with out confirmed money backing created the present backlog of unpaid obligations, prompting the federal authorities to challenge a directive banning MDAs from awarding contracts with out out there funds.
“Sure, because the Accountant-Normal of the Federation, my workplace is predicted to disburse funds to related businesses on the acceptable time, however that may solely be carried out if the funds can be found. I will need to have the funds earlier than I can disburse,” he mentioned.
The AGF additionally addressed considerations over the Centralised Cost System, acknowledging that some operational challenges weren’t initially envisaged however insisting that corrective steps had been underway.
“Although challenges are being confronted with the operation of the Centralised Cost System, they’re being addressed for seamless operation,” he assured.
Ogunjimi additional reminded lawmakers that the controversial “Methods and Means” financing used previously to plug funding gaps was not being deployed.
“I additionally need to remind us that ‘Methods and Means’ used previously for such funding is not any extra, for the nice of the nation’s economic system,” he mentioned.
His clarification, nevertheless, did little to calm the stormy session, as senators maintained that Nigerians anticipated tangible outcomes, not technical justifications.
With tensions working excessive and key questions unresolved, notably over the alleged N28 trillion in income and nil capital allocations to MDAs, the committee ultimately moved right into a closed-door session with the AGF for what members described as “additional important engagement.”
The end result of that session is predicted to find out the destiny of the Accountant-Normal’s funds proposal and will form the broader debate on fiscal transparency and funds efficiency beneath the present administration.
Sunday Aborisade
Times Nigeria