In a significant move to ensure fiscal transparency, the Senate Finance Committee has issued a stern warning to government-owned agencies that have failed to submit proper expenditure records for the 2024 fiscal year.
Chairman’s Ultimatum
On Monday, during an investigative hearing, Senator Sani Musa, Chairman of the Finance Committee, threatened to withhold future allocations from any agency not complying with the committee’s summons for financial scrutiny.
Scrutiny of Centralized Payment System
The committee also expressed its dissatisfaction with the centralized payment system managed by the Office of the Accountant General of the Federation, led by Missus Oluwatoyin Madein. Concerns were voiced regarding delays in the release and utilization of capital budgets, pointing to inefficiencies in the current system.
Irregularities in Financial Reporting
The hearing focused on several key areas: the remittance of internally generated revenue, fiscal accountability, and the overall state of Nigeria’s financial management system. It was revealed that there were significant irregularities in the expenditure records of some agencies, which prompted the committee’s intervention.
Financial Summary Presentation
During the session, Missus Madein presented a summary of federal government revenues up to September 2024, which included:
- Independent revenue of ₦2.7 trillion.
- Operating surplus from Government-Owned Enterprises (GOEs) at ₦2.3 trillion.
- Internally generated revenue (IGR) from Ministries, Departments, and Agencies (MDAs).
However, the committee found the report lacking, as it primarily reflected the activities of the Accountant General’s office, omitting crucial financial details from other federal entities.
Summoning Additional Agencies
Due to the incomplete nature of the provided financial data, the committee decided to summon additional critical agencies for a comprehensive review. These include the Revenue Mobilization Allocation and Fiscal Commission (RMAFC), the Nigerian Extractive Industries Transparency Initiative (NEITI), and the Nigerian National Petroleum Corporation Limited (NNPCL).
Push for Transparency
Senator Musa emphasized the necessity for all stakeholders to be present simultaneously to ensure clarity and consistency in financial reporting, underlining the committee’s aim for transparency.
Concerns Over Stamp Duty Revenues
The committee also addressed the alarmingly low stamp duty revenues, which totaled only ₦30.3 million from 2020 to 2024 against a backdrop of ₦301.49 million in other IGR categories. This discrepancy was linked to poor budget performance, as tax collection is contingent on payment processing.
Defence by the Accountant General
In defense, Missus Madein explained that the centralized payment system was designed to reduce inefficiencies and avoid the annual rollover of unutilized funds, although the system’s implementation has faced challenges.
Deadline for Additional Reports
The committee has set a deadline for the Accountant General to provide more detailed reports by Wednesday, ahead of a follow-up meeting, signaling its resolve to address these financial discrepancies head-on.
