The Senate Committee on Finance on Thursday strongly criticised the Accountant-General of the Federation (AGF), Shamsedeen Ogunjimi, over delays in releasing the 2025 budget funds to ministries, departments, and agencies (MDAs).
The lawmakers raised the issue during ongoing budget defence sessions at the National Assembly in Abuja, highlighting the operational challenges caused by the hold-up.
Senator Sani Musa, chairman of the committee, expressed displeasure with the AGF’s office, describing its approach as unfriendly and urging immediate change for the sake of effective governance. He warned that the non-release of appropriated funds was crippling operations and service delivery across MDAs.
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“Nearly all the MDAs appearing before us reported similar financial constraints,” Musa said, calling the situation alarming and detrimental to public service. The committee subsequently postponed consideration of the AGF’s budget proposal and resolved to hold a closed-door session to examine the recurring delays in funds disbursement.
In response, Ogunjimi explained that many of the current challenges were inherited from previous administrations. He noted that his office disburses funds only after proper authorisation and cited factors such as low tax remittances, contract awards without secured funding, and inadequate national revenue as key constraints.
While affirming that the financial system remains functional despite liquidity pressures, the AGF advocated for stronger tax compliance, improved revenue generation, and coordinated fiscal reforms to ensure smoother implementation.
Ogunjimi further highlighted that indiscriminate contract awards by some MDAs without available funds had worsened the situation, prompting directives prohibiting contracts without secured financing. He added that challenges from operating the centralised payment system were unforeseen but reassured lawmakers that corrective measures are underway.
“Yes, my office disburses funds only when resources are available. The emergency funding measures previously used have been discontinued in the national interest,” Ogunjimi said.