Committee members indicated plans to summon other agencies, including the NNPC and NEITI to address discrepancies in their submissions.
The senate, through its finance committee, issued a stern warning on Monday, threatening to withhold 2025 budget allocations for government agencies that fail to appear for scrutiny of their 2024 expenditure records..
This warning came during an investigative hearing focused on internally generated revenue, fiscal accountability, and the overall state of Nigeria’s financial management system.
The committee chairman, Sen. Sani Musa (APC, Niger east), emphasised that agencies must provide detailed, factual reports on how their 2024 appropriations were utilized.
“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 were expended must be provided with facts and figures.”
Earlier, the Accountant General of the Federation, Oluwatoyin Madein, presented a summary of federal revenue up to September 2024, including independent revenue of ₦2.7 trillion, operating surplus from Government-Owned Enterprises (GOEs) of ₦2.3 trillion, and Ministries, Departments, and Agencies’ (MDA) internally generated revenue (IGR) of ₦344 billion. However, the committee noted significant omissions in the report, particularly regarding the broader financial activities of the federal government.
In response, the committee resolved to summon key stakeholders, including the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC), the Nigerian Extractive Industries Transparency Initiative (NEITI), and the Nigerian National Petroleum Company Limited (NNPCL), for a joint review session to address discrepancies and ensure transparency.
“This is not about hearing from one side and another separately; we need all stakeholders present at the same time to provide clarity and consistency in their reports.
“The senate hearing reflects growing efforts to strengthen Nigeria’s financial oversight and accountability mechanisms, with a shared commitment to enhancing transparency and building a robust fiscal policy framework.” said the committee chairman.
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During the hearing, senators expressed frustration over inefficiencies in the centralized payment system managed by the Office of the Accountant General. They highlighted persistent delays in capital budget disbursements, which have stalled critical infrastructure projects. Lawmakers also criticized reports of contractors being forced to pay under-the-table fees, amounting to 5 percent of contract values, to expedite payments—a practice they deemed highly unethical and counterproductive.
Defending the centralized payment policy, the Accountant General stated it was designed to curb inefficiencies and prevent unspent funds from rolling over annually. Despite this, senators remained unconvinced, citing the system’s adverse impact on project execution and public trust.
Additionally, the Accountant General disclosed that stamp duty revenues from 2020 to 2024 totaled only ₦30.3 million, a figure lawmakers criticized as alarmingly low compared to the ₦301.49 million reported as internally generated revenue. This shortfall, they argued, reflected broader inefficiencies in budget implementation, as taxes are only collected when payments are made.
The committee granted the Accountant General until Wednesday to submit all pending reports ahead of a follow-up meeting and announced plans to summon other agencies to address ongoing financial discrepancies.
