ABUJA: Toba Owojaiye reporting
The Senate has issued a stern warning to federal Ministries, Departments, and Agencies (MDAs), threatening zero budget allocations for 2025 if they fail to account for expenditures from the 2024 appropriations.
The directive came during an investigative hearing by the Senate Committee on Finance, chaired by Senator Sani Musa.
Truth Live News gathered that the Finance committee criticized the lack of transparency in Nigeria’s financial management system, citing discrepancies in reports from key agencies, including the Nigerian National Petroleum Company Limited (NNPCL) and the Office of the Accountant General of the Federation (OAGF).
Key concerns raised are as follows:
- Revenue Reporting Discrepancies: Lawmakers expressed frustration over inconsistencies in revenue data, particularly from NNPCL, Liquefied Natural Gas (LNG) dividends, and federal accounts.
- Bureaucratic Bottlenecks: The centralized payment system managed by the Accountant General’s office was heavily criticized for causing delays. Over 700 MDAs rely on a single office, resulting in months-long payment delays for executed projects.
- Under-the-Table Payments: Contractors reportedly pay 5% of contract values as unofficial fees to expedite payments, further eroding public trust.
- Low Fund Utilization: Despite a reported N8 billion capital allocation for 2024, only 25% (N2.9 billion) had been disbursed by September, hindering project execution and resource allocation for other agencies.
Senator Musa emphasized the need for accurate financial data and warned non-compliant MDAs of dire consequences.
“Records of how appropriations made for 2024 are expended must be provided with facts and figures.
“Any agency that fails to appear risks zero allocation in the 2025 budget,” he said.
The committee on finance plans to summon other stakeholders, including the Revenue Mobilization Allocation and Fiscal Commission (RMAFC) and the Nigerian Extractive Industries Transparency Initiative (NEITI), for a comprehensive review of discrepancies.
Lawmakers demanded improved synergy between the Accountant General’s office and other agencies to enhance oversight and policy-making.
The committee also highlighted the importance of transparency in managing loans, grants, and other financial inflows.
The Senate’s ultimatum reflects its growing frustration with inefficiencies in Nigeria’s financial systems.
However, achieving meaningful reform requires addressing entrenched practices, such as unofficial payments, and decentralizing payment processes to improve efficiency.
The public will be closely watching how these measures translate into tangible changes in governance and project delivery.