The Senate Committee on Finance has declined consideration of the 2026 budget proposal of the Accountant-General of the Federation, AGF, following revelations that no funds had been released to Ministries, Departments and Agencies, MDAs, under the 2025 budget.
Lawmakers expressed outrage during the budget defence session, describing the development as unacceptable and responsible for crippling government operations nationwide.
Chairman of the Committee, Senator Sani Musa, said complaints from MDAs had been uniform, with several agencies lamenting non-release of funds despite budgetary approvals.
The committee, subsequently, stepped down consideration of the Treasury’s 2026 proposal and moved into a closed-door session to probe the persistent non-disbursement.
Appearing before the panel, the Accountant-General, Ogunjimi Babatunde, attributed the situation to inherited fiscal challenges and revenue shortfalls.
He cited poor tax remittances by some MDAs, award of contracts without secured funding, and inadequate revenue inflows
Senators Adams Oshiomhole, Danjuma Goje and Patrick Ndubueze demanded explanations over revenue remittances, abandoned road projects, unpaid contractors from the 2024 and 2025 fiscal years, and internal protests within the ministry.
Meanwhile, the Nigerian Bulk Electricity Trading, NBET, proposed a ₦601 billion budget for 2026, revealing that ₦858 billion appropriated under a power intervention programme was not released. The agency disclosed that Generation Companies are owed between 50 and 60 per cent of payments for electricity supplied.
Lawmakers withheld approval of the agencies’ proposals pending further review instructing the MDA to return to the committee on Monday 16 of February.
