Under-Remittance: Allocation of Defaulting Agencies to be Debted
Mr. Femi Gbajabiamila, the speaker of the House of Representatives, has warned all government agencies against under remittance of revenues.
The speaker, who spoke at the interactive session of the 2021 to 2023 Medium Term Expenditure Framework and Fiscal Strategy Paper, said agencies are in the habit of diverting revenues that are supposed to be remitted to the treasury to finance projects regarded as ‘unnecessary trivialities.’
Hon. James Faleke, the Chairman, House Committee on Finance, said the House of Representatives and the entire National Assembly will now expect such expenses to be deducted from allocation of defaulting agencies.
Gbajabiamila said: “Our country is currently facing a fiscal crisis, compounded by the intense disruption that has been wrought on our economic performance and financial projections by the Covid-19 pandemic. We are not the only ones.
“Nations all over the world, including those we rightly consider to be leading lights, are facing a moment of reckoning that is redefining the way government operates. Already, we have had to carry out severe cuts to the 2020 Appropriation Act, while at the same time borrowing more to fund urgent development needs and implement interventions to help the most vulnerable of our citizens get through these trying times with some dignity.
“All of us in the House of Representatives recognise that the challenges we now face will not abate in the medium term. Yet, we are committed to using the appropriations process as a tool for accomplishing our nation’s most pressing development objectives.
“We have a responsibility to act with urgent determination to build the infrastructure of opportunity that is required to lift millions of our fellow citizens out of poverty. We recognise that we cannot accomplish these objectives using loans and outside financing alone.
“Therefore, we need to impose deep cuts in the cost of governance and improve internal revenue generation and collection so that we can free up resources that can then be deployed to fund policy initiatives that will enhance the lives of our people.
“The revenue-generating agencies of the Federal Government have a vital role to play in this regard. There has thus far been a consistent failure to adhere to the revenue remittance agreements to which many of these agencies have committed.
“We have credible reports that these desperately needed funds have in many cases, been diverted to finance unnecessary trivialities. At the same time, the government is left scrambling for alternative sources to fund priority projects. We cannot afford this dynamics, and we will not tolerate it any more.
“The legislature remains the keeper of the public purse, with broad constitutional authority to act on behalf of the Nigerian people, to ensure that our collective resources are efficiently administered in service of the public good. Let no one be in doubt, the House of Representatives will not hesitate to act on our constitutional authority notwithstanding whatever objections may arise.
“You have gathered here today to begin an important assignment that will have broad impact on our nation’s future. I ask that you keep this in mind at all times. Ensure that your engagements are grounded in a shared determination to help our beloved nation reach its promise of peace and prosperity for all.”
