The National Assembly Joint Committee on Finance has initiated a special investigation into a revenue shortfall amounting to N4 trillion, attributed to indiscriminate waivers granted to government agencies.
Background
This resolution, co-chaired by Senator Sani Musa and Representative Abiodun Faleke, was reached during a hearing on Monday aimed at examining the revenue profiles of Ministries, Departments, Agencies (MDAs), and Government-Owned Enterprises (GOEs) ahead of the 2025 budget defense.
The hearing was intended to ensure accurate and realistic revenue projections for 2025, focusing on internally generated revenue and expenditures.
Alarming Revenue Discrepancy
During the session, Senator Adamu Aliero highlighted the severity of the issue.
“Due to waivers, there is a significant shortfall between projected and actual revenue collections. Over N5.9 trillion was expected in the consolidated revenue fund, but only N1.9 trillion has been remitted. This shortfall of over N4 trillion is alarming and warrants urgent investigation,” Aliero stated.
Aliero proposed setting up a special committee to investigate unremitted funds and identify those responsible for granting these waivers.
Mismanagement of GOEs’ Revenues
Senator Sani Musa underscored irregularities among GOEs, which have been accused of withholding revenues.
“Many GOEs fail to disclose all revenue sources to the Budget Office and retain substantial portions of generated income. Some agencies spend up to 95% of the revenue they collect, which is unacceptable. We must address these leakages and ensure compliance with financial regulations,” Musa said.
Musa further warned GOEs that failure to provide accurate financial reports could result in zero budget allocations in 2025.
Federal Road Safety Corps (FRSC) Under Scrutiny
The committee criticized the Federal Road Safety Corps (FRSC) for failing to remit N8 billion of its 2024 internally generated revenue.
Deputy Corps Marshal Shehu Mohammed revealed that while the agency set a revenue target of N10 billion, it generated N13 billion but remitted only N5 billion. The committee demanded a detailed explanation for the unremitted funds, given the FRSC’s status as a fully government-funded agency.
Minister of Budget and Economic Planning’s Address
The Minister of Budget and Economic Planning, Atiku Bagudu, briefly addressed the hearing, explaining that lessons from the 2024 fiscal year informed the 2025 budget assumptions.
He urged GOEs to explore innovative revenue-generating strategies to support the government’s economic plans.
“Repositioning the economy requires collective effort. GOEs must align with the government’s vision and adopt creative approaches to revenue generation,” Bagudu stated.
Next Steps
The Joint Committee plans to thoroughly investigate the unremitted funds and implement measures to address revenue leakages. Agencies found guilty of financial mismanagement risk severe sanctions, including reduced or zero budget allocations.
The National Assembly’s proactive stance underscores its commitment to fiscal accountability and economic stability, with the ultimate goal of ensuring that government revenues are effectively utilized for the benefit of Nigerians.
