……As Reps Summon NPA MD/CEO to Appear Tuesday
…Senate Threatens Zero Allocation For Non-Compliant Agencies
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun has said there are positive indicators for a positive performance of the country’s economy in 2025.
He stated this while giving an overview of the expected 2025 budget proposal and the Medium-Term Expenditure Framework and Fiscal Strategy Paper on Monday before the House of Representatives Committee on National Planning and Economic Development.
Responding to a query by the chairman of the committee, Ibrahim Isiaka, the minister said, going by the projection on increased revenue in 2025 as well as other measures taken, the country is moving away from factors that had in the past impacted negatively on the Nigerian economy and affected its people.
He said, “We do have market pricing and foreign exchange. That has resulted in a situation whereby upwards of 5% of GDP has been lost to a plurality of factors benefiting just a few and created long-sighted incentives against growth and investment”.
According to him, as the revenue goes up, it will help lower debt service, and lower borrowing as the economy improves and becomes more competitive.
The minister added, “The deficit of that increase which we hope to achieve less but right now we are assuming is about 9.3 trillion naira in new borrowings and the debt service of about two trillion naira.
“In a nutshell, that backdrop gives you the optimism that the 2025 budget estimates, particularly the one on revenue, will be achieved and the economy will be strong. It will last up to an inclusive and sustainable growth”.
Speaking earlier, the Chairman of the House Committee on Finance, James Faleke said, the committees are looking at the revenue performances of the MDAs as regards the 2024 budget as the 2025 proposed Budget is about to commence in January.
He said, “We are now in December. By now, the agencies should be able to provide us with what revenue we have generated between last year and November. At least for 11 months, we should be able to have that. We are just interested in what revenue we are able to get.
“Apart from that, we also want to see the expenditures as it works. Apart from those who have some levels of percentage collection. We are interested in whether agencies are able to do that”.
Meanwhile, the committee has directed the Managing Director and Chief Executive Officer (MD/CEO), of Nigerian Ports Authority (NPA), Dr Abubakar Dantsoho to appear before it on Tuesday, December 10th, 2024 unfailingly.
Faleke gave the order when he turned back Dantsoho’s representative, Sabiu Musa Danbatta, who informed the Committee that, the MD/CEO was on a special assignment, hence his absence before the Committee.
Senate Threatens Zero Allocation For Non-Compliant Agencies
The Senate, through its Finance Committee, has issued a stern warning to government-owned agencies that fail to provide proper expenditure records from the 2024 fiscal year.
Chairman of the Finance Committee, Senator Sani Musa, who issued the threat on Monday during an investigative hearing, underscored that the committee will withhold allocations to any agency that does not comply with its summons for scrutiny.
In an interface with the Accountant General of the Federation, Missus Oluwatoyin Madein, the committee expressed dissatisfaction with the centralized payment system managed by the Office of the Accountant General also came under scrutiny as members frowned upon delays in the release and utilization of capital budgets.
The committee’s dissatisfaction stemmed from irregularities discovered in the expenditure records of some agencies. The investigative hearing focused on the remittance of internally generated revenue, fiscal accountability, and the overall state of Nigeria’s financial management system.
During the session, the Accountant General of the Federation, Oluwatoyin Madein, presented a summary of federal government revenues up to September 2024, reporting:
Independent revenue: ₦2.7 trillion; Operating surplus from Government-Owned Enterprises (GOEs): ₦2.3 trillionMDAs’ internally generated revenue (IGR).
The committee however criticized the report for being incomplete, as it only reflected the activities of the Accountant General’s office, leaving out key financial details from other federal agencies.
The lawmakers also resolved to summon other critical agencies, including the Revenue Mobilization Allocation and Fiscal Commission (RMAFC), the Nigerian Extractive Industries Transparency Initiative (NEITI), and the Nigerian National Petroleum Corporation Limited (NNPCL), for 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 at the same time to provide clarity and consistency in their reports,” Senator Musa stated, emphasising the need for transparency.
Concerns were also raised about low stamp duty revenues, which amounted to just ₦30.3 million between 2020 and 2024, compared to ₦301.49 million in other IGR categories. Lawmakers attributed the shortfall to poor budget performance, noting that taxes are only collected when payments are processed.
The Accountant General revealed that stamp duty revenues from 2020 to 2024 were disappointingly low, totalling ₦30.3 million compared to the ₦301.49 million internally generated revenue (IGR).
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 gave the Accountant General until Wednesday to provide additional reports ahead of a follow-up meeting the same day. It also signalled its intention to summon other agencies to address discrepancies in their financial activities.
