The Nigerian Senate, through its Finance Committee, has issued a stern warning to government-owned agencies failing to present comprehensive expenditure records for the 2024 fiscal year.
Senator Sani Musa, Chairman of the Finance Committee, delivered the ultimatum during an investigative hearing on Monday. He cautioned that the committee would withhold budgetary allocations from any agency that fails to comply with its summons for scrutiny.
During the hearing, the committee expressed dissatisfaction with the centralised payment system overseen by the Office of the Accountant General of the Federation, citing delays in the release and utilisation of capital budgets. The session focused on remittances of internally generated revenue, fiscal accountability, and broader issues within Nigeria’s financial management framework.
The Accountant General, Oluwatoyin Madein, provided a summary of Nigerian government revenues up to September 2024, reporting:
- Independent revenue: ₦2.7 trillion
- Operating surplus from Government-Owned Enterprises (GOEs): ₦2.3 trillion
- MDAs’ internally generated revenue (IGR)
However, the committee criticised the report as incomplete, highlighting its exclusion of key financial details from other federal agencies.
Call for Transparency
The Finance Committee has resolved to summon critical agencies, including the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), the Nigerian Extractive Industries Transparency Initiative (NEITI), and the Nigerian National Petroleum Corporation Limited (NNPCL). The aim is to conduct a comprehensive review of discrepancies in their financial submissions.
“This is not about hearing from one side and another separately; we need all stakeholders present simultaneously to ensure clarity and consistency,” Senator Musa emphasised, urging greater transparency.
Concerns Over Low Stamp Duty Revenues
The lawmakers also raised concerns about the underperformance of stamp duty revenues, which amounted to just ₦30.3 million between 2020 and 2024, compared to ₦301.49 million in other IGR categories. They attributed this shortfall to poor budget execution, noting that taxes are only collected when payments are processed.
Defending the centralised payment system, the Accountant General explained that it was introduced to prevent inefficiencies and reduce the rollover of unutilised funds.
Next Steps
The committee has given the Accountant General until Wednesday to submit additional reports ahead of a follow-up meeting. Further summons will be issued to other agencies to address the inconsistencies in their financial records.
