The National Assembly Joint Committee on Finance has set up a special panel to investigate a revenue shortfall exceeding N4 trillion, which has been linked to indiscriminate waivers granted by government agencies.
This announcement came during a probe session held yesterday in Abuja, which was co-chaired by Senator Sani Musa and Representative James Faleke.
The purpose of the session was to assess the revenue profiles of Ministries, Departments, and Agencies, MDAs, and Government-Owned Enterprises, GOEs, in preparation for the 2025 budget.
The initiative aims to assist the Senate and House of Representatives Committees in forming accurate and feasible revenue projections for 2025.
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The investigation was initiated following a motion by Senator Adamu Aliero on the Senate floor, where he expressed concerns regarding the substantial revenue shortfall and the influence of waivers on expected collections.
“Due to the issue of waivers, there is a serious shortfall between what is supposed to be collected as revenue and what is collected,” Senator Aliero stated.
He further added, “From our records, over N5.9 trillion was expected for the Consolidated Revenue Fund, but only N1.9 trillion has been accounted for. We need to set up a special committee to investigate this serious anomaly.”
“We cannot allow revenue agencies to spend money without the National Assembly’s oversight. If someone is given a waiver, we must determine who approved it.
A shortfall of over N4 trillion is not a small amount. Over N4.9 trillion has not been remitted, and we should investigate all the unremitted funds.”
Concerns Over Agency Oversight and Transparency
Co-chair Senator Sani Musa remarked that many GOEs generate revenue from various sources but fail to disclose it.
“We have discovered that some GOEs do not disclose their full revenue to the budget office. After scrutinising their records, we believe these agencies will be able to provide more details on how these revenues are sourced. We will also focus on their expenditures,” Musa stated.
“It’s concerning that some agencies collect revenues and spend almost 95% of it. This leakage must be addressed, and we are committed to finding a solution,” He added,
Senator Musa also referred to the President’s recent comments regarding the 2025 budget, stressing the necessity for MDAs to defend their budgets before the National Assembly. He warned that agencies failing to do so could face zero allocations.
The Joint Committee on Finance expressed concerns over the Joint Admissions and Matriculation Board, JAMB), questioning the rationale behind it receiving a federal grant of N6 billion while remitting only N4 billion to the Consolidated Revenue Fund.
The Committee also scrutinised JAMB’s allocation of N1.1 billion for refreshments and meals in its 2025 budget proposal.
JAMB Registrar Prof. Ishaq Oloyede was instructed to return in three days with a more comprehensive presentation.
In the same vein, the Federal Road Safety Corps, FRSC, was questioned for not remitting the N8 billion it generated in 2024.
This came after a presentation by Deputy Corps Marshal Shehu Mohammed, standing in for the Corps Marshal General. Mohammed reported that while the FRSC had a target of N10 billion, it raised N13 billion but remitted only N5 billion.
“You had a target of N10 billion but generated N13 billion, remitting only N5 billion. You need to furnish this Committee with details of the unremitted funds,” Senator Sani directed.
The Committee ordered the FRSC to provide detailed information regarding the unremitted funds.
Warning to Non-Compliant Agencies
The Minister of Budget and Economic Planning, Atiku Bagudu, stressed the importance of transparency in both revenue generation and allocation.
He noted that the 2024 budget represents the current administration’s first full-year budget and that lessons learned will inform the assumptions for the 2025 budget, which seeks to boost revenue and stabilize the economy.
Bagudu urged all government agencies to fully cooperate with the National Assembly, warning that agencies failing to present and defend their budgets could face zero allocations in the 2025 budget.
Other government bodies, including the Fiscal Responsibility Commission, Nigeria Customs Service, Federal Airports Authority of Nigeria, and Nigeria Communications Commission, have also been summoned to appear before the Committee in its next session to account for their revenue and expenditures.
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