Lawmakers query accountant-general over contractor debts, stalled capital spending

THE Senate Committee on Finance on Thursday pressed Accountant-General of the Federation, Mr Shamseldeen Ogunjimi, over growing complaints of unpaid contractors and the failure to release capital funds to many government agencies.

Mr Ogunjimi was invited to the National Assembly as part of the review of his office’s 2026 budget. The session was led by the committee Chairman, Mr Sani Musa, who represents Niger East in the upper chamber.

Mr Musa opened the meeting by stating that the panel would not consider the budget request until concerns surrounding poor implementation were resolved. He told the accountant-general that Nigerians expected his office to demonstrate a stronger commitment to transparency and effective service delivery.

The senator also attacked the current envelope budgeting structure, describing it as outdated and unproductive. He said the model had not delivered value for money and should be replaced with a performance-based approach that linked spending to actual results.

Speaking next, Mr Danjuma Goje, who represents Gombe Central, said lawmakers were now regularly approached by contractors who had not been paid for completed jobs. He said the situation had become a source of embarrassment for the legislature.

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Goje questioned why contractors were still owed despite government assurances that revenue would increase following the removal of fuel subsidies and the unification of the foreign exchange market. He also asked why capital allocations for many MDAs were set at zero in 2025.

Senator for Katsina South, Mr Muntari Dandutse, said reports indicated that revenue agencies had generated as much as N28 trillion, yet contractors across the country were still waiting for payment. He criticised the centralised payment platform, saying it had worsened the situation and weakened public confidence in government operations. He added that the issue could reflect negatively on President Bola Tinubu’s administration.

Other senators added their voices, expressing concern over the slow release of capital funds and calling for immediate reforms. Senator representing Lagos East, Mr Tokunbo Abiru, advised Mr Ogunjimi and his team to improve the efficiency and capacity of the centralised payment system to restore trust.

Responding, Mr Ogunjimi said part of the problem stemmed from MDAs awarding contracts without securing funds to pay for them. He explained that his office could only release money when cash was available.

He revealed that a new directive now prohibited agencies from awarding contracts unless funding was first confirmed, admitting that the centralised payment system was facing challenges but said efforts were underway to fix the flaws.

He also noted that the former reliance on ‘Ways and Means’ financing had been discontinued because of its harmful impact on the economy.