The Senate has threatened federal ministries, departments, and agencies (MDAs) with zero allocations in 2025......Read The Full Article>>.....Read The Full Article>>
They must appear before the Senate to review their 2024 expenditures.
The Senate criticized discrepancies in Nigeria’s revenue generation and expenditure tracking.
They called for better collaboration with the Office of the Accountant General of the Federation.
During an investigative hearing, Senators voiced concerns about fiscal accountability. Senator Sani Musa led the session, focusing on revenue remittance and financial management.
Committee members criticized the discrepancies in the records of some agencies. They expressed frustration during the session with Accountant General Oluwatoyin Madein and her team.
Senator Musa emphasized the need to tackle financial inconsistencies. He stated that such issues undermine transparency and accountability in governance.
He warned that agencies failing to appear before the committee risk zero allocations in 2025.
“Any agency that failed to appear before this committee upon invitation risks zero allocation in the 2025 budget,” he said.
Musa highlighted the difficulty in accessing accurate data on federal funds.
“We should be able to determine the exact state of revenues collected. Unfortunately, that is not the case today,” he noted.
Key concerns included discrepancies in reports from the Nigerian National Petroleum Company Limited and the federation account.
The committee also sought clarity on loans, grants, and other financial inflows.
Before the threat, the Accountant General summarized the federal government’s internally generated revenue. She reported an N8 billion capital allocation for 2024, but only N2.9 billion had been released.
Lawmakers pointed out that unutilized funds hindered other agencies from accessing necessary resources.
They criticized the centralization of payments in the Accountant General’s office for creating bureaucratic delays.
They noted that this system often caused MDAs to wait months for payments after project execution. Such delays negatively impacted government operations and public projects.
Concerns emerged about contractors paying under-the-table fees, reportedly 5% of contract values, to expedite payments.
The reported figures included independent revenue of N2.7 trillion and operating surplus from government-owned enterprises totaling N2.3 trillion.
However, the committee noted significant omissions in the submitted report.
Following the identified gaps, the committee resolved to invite additional agencies for a joint session.
They included the Revenue Mobilization Allocation and Fiscal Commission, Nigerian Extractive Industries Transparency Initiative, and NNPCL.
“This is not about hearing from one side… we need all stakeholders present at the same time,” Senator Sani stated.
The Senate hearing reflects efforts to strengthen Nigeria’s financial oversight and accountability mechanisms. The goal is to enhance transparency and build a robust fiscal policy framework.
Other committee members expressed frustration over delays in capital budget releases. They criticized the centralized payment system managed by the Accountant General’s office.
Lawmakers stated that the policy has led to inefficiencies and diminished public trust. They especially noted the impact on constituencies expecting critical infrastructure projects.
Concerns about contractors paying under-the-table fees reemerged. Lawmakers warned that this practice undermines the system’s efficiency.
The Accountant General revealed low stamp duty revenues from 2020 to 2024.
The total was only N30.3 million compared to N301.49 million in internally generated revenue.
Lawmakers linked this to poor budget performance, noting that taxes are collected only when payments are made. In her defense, the Accountant General explained the centralized payment system’s purpose.
At the end of the session, the committee gave the Accountant General until tomorrow to provide requested reports. They scheduled a follow-up meeting for 2 PM the same day.
Members indicated plans to summon other agencies to address discrepancies in submissions. They insisted that MDAs should have greater autonomy in budget management while ensuring oversight.
Senator Amos Yohanna summarized the issue, stating, “Federal government revenue is suffering because budget performance is poor.”
He emphasized the need for a functional system. The committee demanded answers regarding the delays in fund disbursement, even for completed projects.
They asked the Accountant General to explain the bottlenecks and propose solutions.
The Senate is expected to deliberate on reforming or abolishing the centralized payment system.
They aim to ensure that Nigeria’s budget implementation meets citizens’ needs and fosters development.
