By Nathaniel Zacchaeus, Abuja
The Senate has threatened zero allocation to any federal agency that failed to appear before it for scrutiny of records of expenditure made from 2024 appropriations.
The red chamber frowned on the discrepancies observed in the records books of some of the agencies.
The Senate Committee on Finance issued the threat during an investigative hearing on remittance of internally generated revenue, fiscal accountability, and the overall state of the country’s financial management system.
Specifically, the Chairman of the Committee, Senator Sani Musa, in his closing remarks after an interface with the Accountant General of the Federation, Oluwatoyin Madein, said any agency that failed to appear before the Committee risks zero allocation for the 2025 fiscal year.
He said, “This performance index exercise on the various MDAs is preparatory to the 2025 budget. Any agency that fails 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 of the Federation presented a summary of internally generated revenue for the federal government up to September 202 before the threat4.
The reported figures included independent revenue of N2.7trn, Operating surplus from Government-Owned Enterprises (GOEs) amounting to N2.3trn, and Ministries, Departments, and Agencies (MDA) internally generated revenue (IGR) of N344bn.
However, the Committee noted that the submitted report focused solely on the Accountant General’s office and omitted significant information about the federal government’s overall financial activities.
In light of the gaps identified, 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 simultaneously 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, in addition to the Chairman, expressed deep frustration over the persistent delays in the release and utilization of capital budgets during the interface with AGF, citing inefficiencies within the centralized payment system managed by the Office of the Accountant General of the Federation.
They criticised the centralized payment policy, which requires over 700 Ministries, Departments, and Agencies (MDAs) to process payments through a single office.
According to them, the policy has led to inefficiencies, delayed project completions, and diminished public trust, especially in constituencies expecting the execution of critical infrastructure projects.
Concerns were also raised about contractors being required to pay under-the-table fees, reportedly five per cent of the contract value, to expedite their payments.
According to them, this practice, if verified, would represent a major accountability issue, undermining the system’s efficiency.
The Accountant General revealed that stamp duty revenues from 2020 to 2024 were disappointingly low, totalling N30.3m compared to the N301.49m internally generated revenue (IGR).
Lawmakers linked this to poor budget performance, as taxes are only collected when payments are made.
In her defence, the Accountant General explained that the centralized payment system was introduced to curb inefficiencies and prevent unutilized funds from being rolled over annually.
The Committee, however, gave the Accountant General until Wednesday this week to provide all requested reports ahead of a follow-up meeting scheduled for 2 p.m. the same day.
Members also indicated plans to summon other agencies to address submission discrepancies, including the Nigerian National Petroleum Corporation (NNPC) and the Nigerian Extractive Industries Transparency Initiative (NEITI).
