Senate forbids MDAs from spending IGR

Senator Sani Musa, Chairman of the Joint Senate Committee on the 2024-2026 Medium Term Expenditure Framework and Fiscal Strategy Paper, stated that no government agency would be allowed to spend the funds generated in the future.

Musa, who is also the Chairman of the Senate Committee on Finance, has thus directed all revenue-generating agencies in the country to provide data of remittances made so far this year to his panel.

He also asked the office of the Federation’s Accountant-General to compile information on remittances and a list of those who had defaulted.

Musa issued the directive during a public hearing on MTEF being held by a bipartisan Senate committee chaired by him.

The panel, which includes the Appropriations, National Planning and Economic Affairs, and Local and Foreign Debts Committees, is meeting with heads of federal ministries, departments, and agencies to discuss the 2024-2026 Medium Term Expenditure Framework and Fiscal Strategy.

“The National Assembly is working hard to protect the country’s economy,” Musa stated.

“Because the Nigerian National Petroleum Company Limited is a Nigerian entity, it must follow Nigerian rules and basic norms.” It must remit when the time comes.

“No agency of the government should come before us to say they are exempted from remitting revenues to the consolidated revenue funds.”

“The Accountant General should take note of the agencies that have yet to remit their revenues to the CRF,” Musa added.

“You should liaise with the Committee’s secretariat so that we could find time to reconvene like this to sort out those issues.”

Musa was replying to a presentation on delayed remittances to the CRA by the Nigerian Institute of Legal and Advanced Studies and the Nigerian Maritime Academy.

He requested that the MDAs provide the committee with a breakdown of their income collection and remittances from January to date.

He stated that MDAs were aware that any conduct that violated financial regulations was a violation of the law.

He stated that authorities must endeavor to ensure that revenue owing to the government is remitted to the government as soon as it is collected.

He also asked that all remittance receipts be made available to the committee.

Musa highlighted concerns about the gap in income estimates and remittances based on presentations by the Nigerian Communication Commission and the Office of the Accountant General for the Federation.

He also encouraged the Federation’s Accountant General to work with MDAs to reconcile remittances and revenue forecasts in the 2026-2027 MTEF and FSP.

He also wanted a full analysis of remittances resulting from income collected by MDAs from stamp duties.

Musa stated that correct reconciliation of remittances was required in accordance with the nation’s financial laws and the Fiscal Responsibility Act.

Mrs Oluwatoyin Madein, the Federation’s Accountant-General, stated that her office works with MDAs to balance their accounts and remittances to government in accordance with financial regulations.

In response to a question on a new government loan request, Mrs Patience Oniha, Director-General of the Debt Management Office, said Nigeria needed to challenge itself on revenue generation given its debt service projections.

The Office of the Accountant General of the Federation, Nigeria Maritime Academy, and the Nigerian Institute of Advanced Legal Studies were among the MDAs that gave their income forecasts for the 2024-2026 MTEF and FSP.

Others include the National Oil Spill Detection and Response Agency, the Development Bank of Nigeria, the Debt Management Office, and the Office.

The Nigerian Communication Commission Joint Matriculation and Examination Board and the Federal Mortgage Bank were ordered to re-present their expenditure and revenue predictions on another day.

Previously, the Accountant General stated that the ministry expected an IGR of N3.1 trillion.

“From the federation account, in 2020 the budgeted revenue was put N7.9tn, and the actual gross revenue was N8tn, while net distribution was N7.6tn,” she stated, detailing the ministry’s revenue statistics over three years.

“In 2021, the budget was N9.2 trillion, while the actual gross inflow was N9.3 trillion and the net inflow was N7.7 trillion,” he added.

“In 2022, the budget was N15 trillion, the actual revenue was N12.2 trillion, and the net distribution was N8.6 trillion.”

“In 2023, the Revenue projection was N13,7tn, as at October, the total revenue inflow was N12.4tn”

“The Stamp Duty budget for 2020 was N17.3 billion, but the actual amount was N119 billion.”

“In 2021, the budgeted amount was N16.8 billion, while the generated amount was N33.94 billion,” the Accountant General stated.

“In 2022, the budget stamp duty was N16.8 billion, while the generated amount was N53.5 billion.”

“In 2023, the budgeted amount was N44.46 billion, while the generated amount was N53 billion.”

“For the IGR in 2020 was N871.3bn, while the actual amount N532.9bn”

“In 2021, the budgeted amount was N1.06tn, while the generated amount was N1.06tn,” she said. In 2022, the planned amount was N2.2 trillion, while the collected amount was N1.39 trillion.

“The budget for 2023 was N2.6 trillion, but the actual amount was N1.42 trillion as of September 30, 2023.”

“We can only project IGR for 2024 and we put that on 20% mark up of the budget of 2023 which is N3.1tn,” she said.