Kehinde Fajobi
The Senate’s Finance Committee has threatened to exclude Ministries, Departments, and Agencies (MDAs) from the 2025 budget if they fail to account for funds allocated in the 2024 fiscal year.
During an investigative hearing on Internally Generated Revenue (IGR), Fiscal Accountability, and Nigeria’s Financial Management System on Monday, the committee expressed dissatisfaction with irregularities in the financial records of several MDAs.
Senator Sani Musa, Chairman of the Finance Committee, issued the warning after a session with the Accountant-General of the Federation (AGF), Oluwatoyin Madein.
He stated, “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.”
Before the warning, the AGF had presented IGR figures up to September 2024, including ₦2.7 trillion in independent revenue, ₦2.3 trillion in operating surplus from government-owned enterprises, and ₦344 billion generated by MDAs.
However, the Senate noted significant gaps in the AGF’s report, which focused solely on her office, omitting key financial activities of the Federal Government.
To address these discrepancies, the committee resolved to summon other relevant agencies, including the Revenue Mobilisation Allocation and Fiscal Commission, the Nigerian Extractive Industries Transparency Initiative, and the Nigerian National Petroleum Corporation Limited, for a joint session.
“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,” Musa said
He added that the Senate remains committed to strengthening Nigeria’s financial oversight mechanisms and ensuring transparency.
The session also revealed concerns over inefficiencies in the centralised payment system managed by the AGF’s office.
Lawmakers cited delays in the release and utilisation of capital budgets and allegations of contractors paying a 5% under-the-table fee to expedite payments.
Additionally, the AGF disclosed that stamp duty revenues from 2020 to 2024 totalled a mere ₦30.3 million compared to ₦301 million in IGR, a situation lawmakers linked to poor budget performance.
The committee directed the AGF to submit all requested reports by Wednesday, December 11, 2024, ahead of a follow-up meeting scheduled for the same day.