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Unremitted N450bn: FG to Prosecute Revenue Generating Agencies’ Officials

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  • FG to Prosecute Revenue Generating Agencies’ Officials

The Federal Government on Thursday said it would prosecute any official of revenue generating agencies indicted in the audit report, which revealed that N450bn was not remitted to the Consolidated Revenue Fund Account.

The unremitted amount, which involved about 33 revenue generating agencies of government, was for the 2010 to 2015 fiscal periods.

The Minister of Finance, Mrs. Kemi Adeosun, who gave the hint during a media briefing on Internally Generated Revenue of government agencies, said the report of the special audit conducted by the ministry revealed serious infractions in some of the agencies.

She said a decision had already been taken that the reports on some of the indicted agencies would be taken to the Economic and Financial Crimes Commission, while those of the others had been made available to their respective parent ministries.

The minister said the accounts of 33 agencies of government covering 2010 to 2015 had been audited, adding that a total sum of N450bn was recoverable from the agencies.

Some of the agencies are the Central Bank of Nigeria, Nigeria Shippers’ Council, Nigerian Export Promotion Council, National Health Insurance Scheme, Nigerian Civil Aviation Authority and Nigerian Communication Commission.

Others are Nigerian Postal Service, National Information Technology and Development Agency, Nigerian Television Authority, Bureau of Public Enterprises, National Pensions Commission and Nigerian Bulk Electricity Trading Plc.

The list also has the Raw Material Research and Development Council, Nigerian Ports Authority, Nigerian Export Processing Zones Authority, Federal Radio Corporation of Nigeria, and the Council for the Regulation of Engineering in Nigeria.

Adeosun said, “The financial regulations are very clear. Where audit reports have indicted some of the officers, because some of the audit reports are going to the EFCC, some of the auditors’ findings are so serious that a decision was taken that those particular reports must go to the EFCC.

“The Ministry of Finance is not a prosecuting agency; ours is to investigate and hand over to the relevant agencies. All the audit reports have been sent to the parent ministries so they can take appropriate actions; and where there are breaches of procedure, the audit report states what procedures have been breached.”

Adeosun lamented that while the Fiscal Responsibility Act, 2007 was designed to provide guidelines and controls to elicit greater accountability and transparency in fiscal operations, actual compliance by revenue generating agencies had been poor.

This, according to her, has resulted in revenue leakages as confirmed by the audit findings conducted by the Finance ministry.

The minister gave the infractions committed by the agencies to include non-remittance and under-remittance of operating surpluses to the Consolidated Revenue Fund; operating without an approved budget; overstating of budget and spending above budgeted amount; and under-reporting of revenues.

The audit report, according to the minister, also revealed that payments were made without invoices and payment receipts, while loans and grants were given to parent ministries without prior approval.

It was also found out that the agencies had poor book keeping, failed to reconcile accounts and had in existence irreconcilable differences.

Some of the agencies, according to Adeosun, lack a fixed asset register and maintain inadequate internal audit process with weak internal controls.

There were also the issues of their failure to submit audited financial statements; payroll fraud and exaggeration of payroll costs; overpayment of staff salaries and abuse of personnel grants; as well as unapproved monetisation of medical and other allowances.

When asked what the ministry was doing to stop the leakage of revenue, the minister said a circular had been issued requesting the submission of vital documents for review and approval.

The documents are estimates of revenues and expenses for the next three financial years; as well as annual budgets and projected operating surpluses.

She said a review team had been set up to evaluate submitted estimates before budget submission to the National Assembly.

Adeosun added, “Agencies that do not review and approve their budgets as advised will be restricted to payment of salaries until the budgets are regularised. This circular is backed by an Executive Order of Mr. President. Demand notices have been issued to affected agencies for the payment of outstanding operating surpluses.

“These agencies have also been invited to a meeting scheduled to hold on the 6th of December, where they are required to submit a repayment plan or face appropriate sanctions, including deduction of amounts owed directly from their Treasury Single Account balance.”

The minister disclosed that a circular had been issued on the approved template for the computation of operating surpluses.

She said, henceforth, the ministry would not allow any revenue generating agency to incur what she described as “non-allowable expenses in the computation of operating surpluses.”

The non-allowable expenses, according to her, are salaries and staff loans in excess of the approved scale by the National Salaries, Incomes and Wages Commission; monetisation of medical and other allowances; expenditure in excess of approved limits; and donations to individuals, political and charitable organisations.

The agencies, according to the minister, have also been mandated to disclose additional information in their financial statements such as expenses incurred on behalf of supervisory or regulatory agencies.

Others are salaries and allowances paid to board of directors, governing council and commissions outside the approved amounts; donations, sponsorships, gifts and their beneficiaries; and items sold or transferred to staff or board members.

She noted that some agencies had started making remittances to the CRF; adding that N640m had been received from the NSC.

The minister put the total independent revenues generated between January and October 2016 at N272.03bn, adding that the government was targeting to increase this to N811.03bn with the recovery of more amounts owed.

She revealed that as part of the measures to check revenue leakage, a new financing model would also be instituted for universities and hospitals.

This, she noted, would take into consideration their funding model and requirements for better controls and improved service delivery.

She added that a circular on the inclusion of 92 additional corporations, agencies and government owned companies to the schedule of the Fiscal Responsibility Act had been issued.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Government

Senate Suspends Senator Abdul Ningi for 3 Months Over Budget Padding Allegations

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Abdul-Ahmed-Ningi

The Senate has announced the suspension of Senator Abdul Ningi for three months following his allegations of budget padding to the tune of N3.7 trillion in the 2024 budget.

Ningi, who represents Bauchi Central and chairs the Senate Committee on Population, had made the claims in a recent interview with the Hausa service of the BBC.

During a plenary session, Senator Olamilekan Adeola, the Chairman of the Senate Committee on Appropriations, raised a motion to address Ningi’s allegations, citing the urgent need to address what he termed as “false allegations.”

The transcript of Ningi’s interview was read on the Senate floor, prompting deliberation on the appropriate action to take.

Initially, Senator Jimoh Ibrahim proposed a 12-month suspension for Ningi, but Senator Chris Ekpeyong moved to reduce it to six months.

Eventually, Senator Garba Maidoki amended the motion further, suggesting a three-month suspension.

The amended motion was put to a voice vote, and Senate President Godswill Akpabio announced the decision to suspend Ningi for three months.

Following the ruling, Ningi was escorted out of the Senate chamber by the Sergeants-at-arms.

The suspension comes amidst division within the Senate over Ningi’s claims, with some senators disowning his allegations and calling for a thorough investigation.

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Government

Ekiti Governor Unveils Multi-Billion Naira Relief Programmes Amid Economic Crisis

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Biodun Oyebanji

Ekiti State Governor, Mr. Biodun Abayomi Oyebanji, has announced a comprehensive relief package aimed at alleviating the hardship faced by the people of the state.

The relief programs encompass various sectors to cushion the impact of the economic downturn.

One of the key initiatives entails clearing salary arrears amounting to over N2.7 billion owed to both State and Local Government workers.

This move signifies the government’s commitment to addressing the financial burdens faced by its workforce.

Furthermore, Governor Oyebanji has approved a substantial increase of N600 million per month in the subvention of autonomous institutions, including the Judiciary and tertiary institutions.

This augmentation is intended to enable these institutions to implement wage awards in alignment with State and Local Government workers’ salaries.

In addition to addressing salary arrears, the relief programs extend to pensioners, with the approval of payments totaling N1.5 billion for two months’ pension arrears.

Moreover, an increase in the monthly gratuity payment to state pensioners and local government pensioners will provide additional financial support, totaling N200 million monthly.

The relief initiatives also encompass agricultural and small-scale business sectors.

The allocation of funds for food production and livestock transformation projects underscores the government’s commitment to enhancing food security and economic sustainability at the grassroots level.

Governor Oyebanji emphasized that these relief programs are part of the state’s concerted efforts to mitigate the adverse effects of the economic downturn and foster shared prosperity.

The comprehensive nature of the initiatives reflects a proactive approach towards addressing the challenges faced by Ekiti State residents.

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Government

President Tinubu Orders Immediate Settlement of N342m Electricity Bill for Presidential Villa

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power project

President Bola Tinubu has directed the prompt settlement of a N342 million outstanding electricity bill owed by the Presidential Villa to the Abuja Electricity Distribution Company (AEDC).

This move comes in response to the reconciliation of accounts between the State House Management and the AEDC.

The AEDC had earlier threatened to disconnect electricity services to the Presidential Villa and 86 Federal Government Ministries, Departments, and Agencies (MDAs) over a total outstanding debt of N47.20 billion as of December 2023.

Contrary to the initial claim by the AEDC that the State House owed N923 million in electricity bills, the Presidency clarified that the actual outstanding amount is N342.35 million.

This discrepancy underscores the importance of accurate accounting and reconciliation between entities.

In a statement signed by President Tinubu’s Special Adviser on Information and Strategy, Bayo Onanuga, the Presidency affirmed the commitment to settle the debt promptly.

Chief of Staff Femi Gbajabiamila assured that the debt would be paid to the AEDC before the end of the week.

The directive from the Presidency extends beyond the State House, as Gbajabiamila urged other MDAs to reconcile their accounts with the AEDC and settle their outstanding electricity bills.

The AEDC, on its part, issued a 10-day notice to the affected government agencies to settle their debts or face disconnection.

This development highlights the importance of financial accountability and responsible management of public utilities.

It also underscores the necessity for government entities to fulfill their financial obligations to service providers promptly, ensuring uninterrupted services and avoiding potential disruptions.

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