The Senate, through its Committee on Finance, has issued a stern warning to the Office of the Accountant-General of the Federation, threatening to withhold its 2026 budget allocation entirely. The unprecedented threat comes amid growing frustration over chronic delays in fund releases by ministries, departments, and agencies (MDAs), coupled with the government’s inability to settle long-standing contractor obligations.
The warning was delivered on Thursday during a fiery session when Accountant-General Shamseldeen Ogunjimi appeared before the committee to defend his office’s proposed 2026 budget. Chaired by Senator Sani Musa, the committee refused to even consider the proposal, citing systemic inefficiencies and persistent failures to ensure timely disbursement of appropriated funds.
According to the Senate, delays in fund releases have left critical agencies, including the Nigerian Bulk Electricity Trading Company (NBET) and the Fiscal Responsibility Commission, struggling to meet operational obligations. Senator Danjuma Goje sharply questioned the management of over N2.2 trillion owed to contractors, pressing Ogunjimi: “Where is the money?” He highlighted revenue inflows from fuel subsidy removals and government-owned enterprises that have reportedly surpassed targets, yet have not translated into payment for essential services.
Senators noted that this pattern of inefficiency has consistently undermined operations across statutory transfers, security agencies, and the Independent National Electoral Commission (INEC). They were particularly critical of the Treasury’s continued reliance on the envelope system of disbursement, describing it as opaque, outdated, and prone to mismanagement. The committee recommended transitioning to a performance-based system, linking fund releases to measurable outputs to enhance accountability and ensure timely operational funding.
In his defence, Ogunjimi stressed that the Treasury can only disburse funds that are formally released to it, noting the office operates without a Ways and Means facility—a mechanism that could temporarily bridge funding gaps. He also acknowledged challenges in the existing payment platform, which he said is undergoing expansion to improve efficiency and capacity.
The Accountant-General further pointed to MDAs as complicit in the problem, claiming many fail to remit revenues or taxes and award contracts without adequate cash backing. These practices, he argued, limit the Treasury’s ability to meet obligations even when funds are available.
Despite these explanations, senators remained unimpressed. Line items in the budgets of security agencies, statutory transfers, and INEC were cited as examples where poor funding has led to operational paralysis. The committee made it clear that continued inefficiency would not be tolerated, suggesting that failure to improve fund releases and accountability could result in a symbolic “zero” allocation for the Accountant-General’s office in the 2026 budget.
Following the tense exchanges, the Senate Committee on Finance scheduled an executive session with Ogunjimi to resolve outstanding queries and clarify modalities for fund management in the coming fiscal year. The review will examine revenue remittance, contract funding, and the transition to the performance-based disbursement system.
The Senate’s hardline stance reflects growing impatience with fiscal mismanagement, particularly as Nigeria grapples with mounting economic pressures, outstanding contractor liabilities, and the urgent need to fund essential public services. Lawmakers are determined to hold the Treasury accountable, signaling zero tolerance for past inefficiencies.
Observers say this development could set a precedent for how future budget proposals are scrutinized. By threatening a “zero” allocation, the Senate is sending a clear message that systemic inefficiencies will no longer be excused, and mismanagement of public funds could carry serious administrative and political consequences.
As the 2026 fiscal year approaches, all eyes are on the outcome of the Senate’s executive session with the Accountant-General. The session could redefine Treasury operations, enforce stricter accountability measures for revenue collection, contract payments, and fund disbursement, and ultimately reshape Nigeria’s fiscal governance landscape.
For now, the Senate’s message is unmistakable: the era of unchecked inefficiency in Nigeria’s public finances may be coming to an end. How the Accountant-General responds could determine whether the Treasury regains credibility—or faces the consequences of a “zero” budget allocation.
Senate Puts Accountant-General on Notice Over Chronic Budget Failures
