The Senate Committee on Finance has threatened zero allocation in 2025 for Ministries, Departments and Agencies (MDAs) that failed to appear before it to defend their expenditures in the 2024 budget.
The committee, during an interactive session with some agencies on Monday, frowned at discrepancies observed in the records of some of them.
Specifically, the committee scrutinised records of remittances of internally generated revenue, fiscal accountability, and the overall state of the country’s financial management system.
Chairman of the committee, Senator Sani Musa told the Accountant General of the Federation, Oluwatoyin Madein, that any agency that failed to appear before the committee would not be spared.
Musa said, “This performance index exercise on the various MDAs is preparatory to the 2025 budget. Any agency that failed to appear before this committee upon invitation, risks zero allocation in the 2025 budget because records of how appropriations made for 2024 are expended must be provided with facts and figures.”
The Accountant General had earlier presented a summary of internally generated revenue for the federal government up to September 2024.
A breakdown of the presentation indicated independent revenue of ₦2.7trn, operating surplus from government-owned enterprises amounting to ₦2.3trn and MDAs’ internally generated revenue of ₦344bn.
The committee however noted that the report focused solely on the Accountant General’s office, with significant omissions regarding the federal government’s overall financial activities.
Consequently, the committee resolved to invite other relevant agencies, including the Revenue Mobilization Allocation and Fiscal Commission (RMAFC), the Nigerian Extractive Industries Transparency Initiative (NEITI), and the NNPCL, for a joint session to ensure a comprehensive review of the discrepancies.
“This is not about hearing from one side and another separately; we need all stakeholders present at the same time to provide clarity and consistency in their reports.
“The Senate hearing reflects growing efforts to strengthen Nigeria’s financial oversight and accountability mechanisms, with a shared commitment to enhancing transparency and building a robust fiscal policy framework”, said the committee chairman.
Other members of the committee expressed frustration over the persistent delays in the release and utilisation of capital budgets, citing inefficiencies within the centralised payment system managed by the Office of the Accountant General of the Federation.
They raised questions about the centralised payment policy, which requires over 700 MDAs to process payments through a single office.
The lawmakers noted that the policy has led to inefficiency, delayed project completion, and diminished public trust.
Concerns were also raised about contractors allegedly being required to pay under-the-table fees, reportedly 5 percent of the contract value, to “expedite” their payments.
The practice, according to them, constitutes a major accountability issue undermining the efficiency of the system.
The Accountant General revealed that stamp duty revenues from 2020 to 2024 were disappointingly low, totaling ₦30.3 million compared to the ₦301.49 million IGR.
The senators linked the poor budget performance, a practice where taxes are only collected when payments are made.
The Accountant General however defended the practice, saying that the centralised payment system was introduced to curb inefficiencies and prevent unutilised funds from being rolled over annually.
Not satisfied with the explanations, the committee gave the Accountant General until Wednesday to provide all requested reports, ahead of a follow-up meeting scheduled for 2pm the same day.
Other agencies listed to appear before the committee include the Nigerian National Petroleum Corporation (NNPC) and the Nigerian Extractive Industries Transparency Initiative (NEITI), to address discrepancies in their submissions.