The Senate has issued a stern warning to federal ministries, departments, and agencies (MDAs), threatening zero allocations in the 2025 budget for those that fail to appear before it to account for their expenditures from the 2024 appropriations.
This warning was articulated during an investigative hearing by the Senate Committee on Finance, chaired by Senator Sani Musa, which scrutinized issues related to internally generated revenue, fiscal accountability, and Nigeria's financial management system.
Senator Musa emphasized that any agency that does not respond to invitations for accountability will face significant funding consequences.
"This performance index exercise on the various MDAs is preparatory to the 2025 budget," he stated, underscoring the necessity for agencies to provide detailed records of their financial activities.
He highlighted that discrepancies in revenue generation and expenditure tracking have raised concerns about transparency and accountability within government operations.
During the session, which included an interface with the Accountant General of the Federation, Oluwatoyin Madein, committee members expressed frustration over inconsistencies in financial records among various agencies.
They criticized the centralized payment system managed by the Accountant General's office, which they argue has led to delays in project completions and diminished public trust.
Lawmakers noted that this system requires over 700 MDAs to process payments through a single office, resulting in bureaucratic bottlenecks.
Concerns were also raised regarding reports of contractors being solicited for under-the-table payments—allegedly around 5% of contract values—to expedite their payments.
The Accountant General reported disappointing figures for stamp duty revenues from 2020 to 2024, totaling only ₦30.3 million compared to ₦301 million in internally generated revenue.
In light of these findings, the committee resolved to invite additional stakeholders, including the Revenue Mobilization Allocation and Fiscal Commission and the Nigerian Extractive Industries Transparency Initiative, for a joint session aimed at addressing discrepancies in financial reporting.
