The Nigerian Senate has issued a stern warning to government agencies, threatening to deny 2025 budget allocations to any agency that fails to provide a detailed account of funds allocated during the 2024 fiscal year. The Finance Committee, chaired by Senator Sani Musa (APC Niger East), delivered this ultimatum during a Monday session focused on internally generated revenue and fiscal accountability.
Call for Accountability
In his closing remarks, Senator Musa stated that the committee’s performance review is essential for preparing 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 emphasized.
The session also included an interface with the Accountant-General of the Federation, Oluwatoyin Madein, who presented revenue data up to September 2024. The reported figures highlighted an independent revenue of N2.7 trillion, operating surplus from Government-Owned Enterprises (GOEs) of ₦2.3 trillion, and Ministries, Departments, and Agencies’ internally generated revenue (IGR) totaling N344 billion.
Financial Oversight Concerns
The committee expressed dissatisfaction with the gaps in the financial reports, which focused solely on the Accountant-General’s office, omitting details about the federal government’s overall financial activities. To address these discrepancies, the committee resolved to invite stakeholders, including the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), the Nigerian Extractive Industries Transparency Initiative (NEITI), and the Nigerian National Petroleum Corporation Limited (NNPCL), 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,” Senator Musa stated.
Challenges with the Centralized Payment System
Lawmakers expressed frustration with delays in the release and utilization of capital budgets, attributing the inefficiencies to the centralized payment system managed by the Office of the Accountant-General of the Federation. They criticized the system for causing delays in project completion, diminishing public trust, and creating bottlenecks for over 700 Ministries, Departments, and Agencies (MDAs).
Concerns were also raised over allegations that contractors are required to pay under-the-table fees—amounting to 5% of contract value—to expedite payments. Lawmakers highlighted this as a significant accountability issue that undermines public confidence in government operations.
Stamp Duty Revenue and Broader Concerns
The Accountant-General revealed that stamp duty revenues from 2020 to 2024 totaled only N30.3 million, far below the ₦301 million generated through other internally generated revenue streams. Lawmakers linked this to poor budget performance and delays in the payment process, as taxes are only collected when payments are completed.
Defending the centralized payment system, Madein stated it was introduced to prevent inefficiencies and ensure that unutilized funds do not roll over annually.
Next Steps
The committee has directed the Accountant-General to submit all outstanding reports by Wednesday ahead of a follow-up meeting scheduled for the same day.
The Senate’s warnings reflect its heightened focus on improving Nigeria’s fiscal accountability and efficiency. Lawmakers stressed the importance of synergy between fiscal and monetary policies to reduce inefficiencies and enhance public trust in governance.
This development underscores the Senate’s commitment to strengthening Nigeria’s financial oversight and ensuring that public funds are effectively utilized for national development.
