The Nigerian Senate has issued a stern warning to ministries, departments, and agencies (MDAs) of the federal government, threatening zero allocation in the 2025 budget if they fail to appear for financial accountability reviews. The reviews focus on how the 2024 appropriations have been utilized.
This ultimatum was announced during a Senate Committee on Finance hearing, chaired by Senator Sani Musa. The committee is investigating the remittance of internally generated revenue, fiscal accountability, and the state of Nigeria’s financial management.
Senator Musa expressed frustration over inconsistencies in financial records, particularly discrepancies in revenue and expenditure reports.
“This performance index exercise on the various MDAs is preparatory to the 2025 budget. Any agency that failed 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 said.
Key areas of concern include conflicting reports from the Nigerian National Petroleum Company Limited (NNPCL), incomplete disclosures on loans and grants, and missing details on revenues from liquefied natural gas operations.
The Accountant General of the Federation, Oluwatoyin Madein, reported that only 25% of the 2024 capital allocation had been utilized by September.
Lawmakers criticized this underutilization, citing its impact on other agencies and public projects. They also highlighted issues with the centralized payment system, managed by the Accountant General’s office, which has caused significant delays in fund disbursement.
Additionally, senators raised alarm over alleged corruption, where contractors were reportedly required to pay 5% of contract values to expedite payments.
The committee plans to summon other key agencies, including the Revenue Mobilization Allocation and Fiscal Commission (RMAFC) and the Nigerian Extractive Industries Transparency Initiative (NEITI), to address discrepancies comprehensively.
Lawmakers stressed the need for MDAs to have more budgetary autonomy while ensuring robust oversight to prevent misuse of funds. The Senate will further discuss reforms to the centralized payment system to enhance efficiency and transparency.
Senator Amos Yohanna summarized the urgency of the issue, stating, “We need a system that works.” The committee has demanded a detailed explanation from the Accountant General, with further deliberations expected to shape the future of Nigeria’s fiscal policy and governance.
