The Senate, through its Finance Committee, has issued a stern warning to government agencies, threatening zero allocation in the 2025 budget for those failing to appear before it to account for funds allocated in the 2024 fiscal year.
During its session on Monday, the committee expressed dissatisfaction with irregularities discovered in the financial records of several agencies.
The warning emerged during an investigative hearing on internally generated revenue, fiscal accountability, and Nigeria’s financial management system.
Specifically, the Chairman of the Committee, Senator Sani Musa (APC Niger East), 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 2025 fiscal year.
“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, “ he said.
The Accountant-General of the Federation had, before the threat, presented a summary of internally generated revenue for the Federal Government up to September 2024.
The reported figures included independent revenue of N2.7tn, operating surplus from Government-Owned Enterprises amounting to ₦2.3tn, and Ministries, Departments, and Agencies’ internally generated revenue of N344bn.
However, the committee noted that the submitted report focused solely on the Accountant-General’s office, with significant omissions regarding the federal government’s overall financial activities.
In light of the gaps identified, the committee resolved to invite other relevant agencies, including the Revenue Mobilisation Allocation and Fiscal Commission, the Nigerian Extractive Industries Transparency Initiative, 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,”
He added, “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.”
Aside from the Chairman, other members of the committee during the interface with AGF, expressed deep frustration over the persistent delays in the release and utilization of capital budgets, citing inefficiencies within the centralized payment system managed by the Office of the Accountant General of the Federation.
They criticized the centralized payment policy, which requires over 700 Ministries, Departments, and Agencies to process payments through a single office.
The policy according to them, 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.
This practice, if verified, according to them, represents 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 N30.3m compared to the ₦301m Internally Generated Revenue.
Lawmakers linked this to poor budget performance, as taxes are only collected when payments are made.
The Accountant-General in her defence 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 pm the same day.
Members also indicated plans to summon other agencies, including the Nigerian National Petroleum Corporation and the Nigerian Extractive Industries Transparency Initiative, to address discrepancies in their submissions.
