Demands transparency in federal revenue, expenditure reporting

The Senate has threatened ministries, departments, agencies, and MDAs of the federal government with zero allocation in the 2025 fiscal year if they fail to appear before it to scrutinize records of expenditures made from 2024 appropriations.

It also took a swipe at discrepancies in Nigeria’s revenue generation and expenditure tracking and called for improved synergy between the Office of the Accountant General of the Federation and the legislative body.

Senators raised these and others yesterday during an investigative hearing by the Senate Committee on Finance, led by Senator Sani Musa, that focused on the remittance of internally generated revenue, fiscal accountability, and the overall state of the country’s financial management system.

Members of the committee who spoke during the session with the Accountant General of the Federation, Oluwatoyin Madein and her team, flayed the level of discrepancies observed in the records books of some of the agencies.

In his opening remarks, Senator Musa emphasized the importance of addressing financial inconsistencies across government agencies, stating that these issues undermined transparency and accountability in governance.

Specifically, he warned that any agency that failed to appear before the committee risked zero allocation for 2025 fiscal year.

“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.

The lawmaker, who noted the inability to readily access accurate data on the funds available to the federation, a gap that impairs effective oversight and policymaking, said: “We should be able to determine, at any point, the exact state of revenues collected, how they’ve been disposed off, and what has been allocated to various accounts. Unfortunately, that is not the case today.”.

Key areas of concern include the discrepancies in reports from the Nigerian National Petroleum Company Limited, NNPCL and the federation account, the dividends received from LNG operations, and other significant variances.

The committee also underscored the need for clarity on loans, grants, and other financial inflows managed by the government.

The Accountant General of the Federation had before the threat, presented a summary of internally generated revenue for the federal government up to September 2024 as she reported an N8 billion capital allocation for 2024, yet only N2.9 billion (25%) had been released for project execution.

Lawmakers noted that the unutilized funds obstructed other agencies from accessing necessary resources, further exacerbating delays across the board and policy of centralizing all payments in the Accountant General’s office was heavily criticized for creating bureaucratic bottlenecks.

They pointed out that this system often resulted in MDAs waiting months for payment after projects had been executed, causing delays in government operations and public projects.

Concerns were also raised about contractors being required to pay under-the-table fees, reportedly 5% of the contract value, to expedite their payments.

The reported figures included independent revenue of N2.7 trillion; operating surplus from government-owned enterprises, GOEs, amounting to N2.3 trillion; and ministries, departments and agencies’, MDA, internally generated revenue of N344 billion.

However, the committee noted that the submitted report focused solely on the Accountant General’s Office, with significant omissions regarding the federal government’s overall financial activities.

Following the gaps identified, the committee resolved to invite other relevant agencies, including the Revenue Mobilization Allocation and Fiscal Commission, RMAFC, the Nigerian Extractive Industries Transparency Initiative, NEITI, and the NNPCL, for a joint session to ensure a comprehensive review of the discrepancies.

“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,” Senator Sani said.

Besides the chairman, other members of the committee expressed deep frustration over the persistent delays in the release and utilization of capital budgets, citing inefficiencies within the centralized payment system managed by the Office of the Accountant General of the Federation.

They criticized the centralized payment policy which requires over 700 ministries, departments and agencies, MDAs, to process payments through a single office.

According to the lawmakers, the policy has led to inefficiencies, delayed project completion, and diminished public trust, especially in constituencies expecting the execution of critical infrastructure projects.

Concerns were also raised about contractors being required to pay under-the-table fees, reportedly 5% of the contract value, to expedite their payments.

This practice, if verified, according to them, represented a major accountability issue, undermining the efficiency of the system.

The Accountant General revealed that stamp duty revenues from 2020 to 2024 were disappointingly low, totaling ¦ 30.3 million, compared to the ¦ 301.49 million internally generated revenue, IGR.

Lawmakers linked this to poor budget performance, as taxes are only collected when payments are made.
The accountant-general in her defence, explained that the centralized payment system was introduced to curb inefficiencies and prevent unutilized funds from being rolled over annually.

At the end of the day, the committee gave the accountant-general till tomorrow to provide all requested reports, ahead of a follow-up meeting scheduled for 2pm the same day.

Members also indicated plans to summon other agencies, including the Nigerian National Petroleum Company Limited, NNPCL, and the Nigerian Extractive Industries Transparency Initiative, NEITI, to address discrepancies in their submissions, even as they insisted that MDAs should be given greater autonomy to manage their budgets while maintaining oversight to prevent misuse.

On his part, Senator Amos Yohanna, Adamawa North, who summarized the issue, said: “Federal government revenue is suffering because budget performance is poor. Taxes remain low because payments are not made. We need a system that works.”

The committee demanded answers to the core issue, which is why funds are delayed, even for uploaded, completed projects?

The accountant-general was asked to provide a detailed explanation of the bottlenecks and propose solutions.

The Senate is expected to deliberate on whether to reform or abolish the centralized payment system, ensuring that Nigeria’s budget implementation meets the needs of its citizens and fosters development.

The Nigerian National Petroleum Company (NNPC) Limited says the new Port Harcourt refinery is over 90 percent completed.

The Port Harcourt Refining Company (PHRC) operates two refineries; the old plant with a capacity of 60,000 barrels per stream day (bpsd) and a new facility with 150,000 bpsd — bringing the refinery’s combined crude processing capacity to 210,000 bpsd.

Mele Kyari, group chief executive officer of NNPC, spoke on Monday when Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) labour leaders visited the facility in Rivers state.

Represented by Isiyaku Abudulai, NNPC’s executive vice-president, downstream, Kyari said the new Port Harcourt refinery is under rehabilitation and would be updated soon.

“When the rehabilitation is completed, it will be up and running and to the state of art compared to any refinery around the world. So, There will be compliance to health and safety compliance (HSC),” he said.

“All the assurances of compliance will be made. And that is why a total rehabilitation is being made. From the contractor’s view, Tecnimont SPA , and from the reports they send us, they are up to over 90 percent completed and we will deal with that as soon as possible.

“We are following up too to ensure that we get value and that we have a combined 60,000 bpsd and 150,000 bpsd to get 210,000 bpsd, so that that will support our refining processes, our products, and with the multiple effects that we have on our refining products, finished products, that we desire in this country.”

‘NEW PORT HARCOURT REFINERY WILL PROPEL EXPORTS’

Kyari said once the feat is achieved, the refinery can propel sufficiency, exports and imports, and local consumption of petroleum products, especially petrol.

Speaking further, he said the NNPC has ensured that there is an established and professional technical operations and maintenance (O&M) team that would continue to operate and maintain the facilities.

Kyari said around the world, if proper rehabilitation — including turnaround maintenance — is not carried out, there will be issues.

“And that also involves looking at the processes and the assets, replacing those aging items that need to be changed and ensuring that the refinery is up and doing,” he said.

“I think that’s the fundamental, and as I said, we are looking at the best O&M teams around the world to support that process.”

The GCEO said the company would scale up monitoring to ensure that “we comply with the best practices around the refinery across the world”.

On November 26, the old Port Harcourt refinery commenced crude oil processing after several years of being moribund.

The state-owned plant also commenced the loading of petroleum products for trucks.

Nigeria’s Vice President, Kashim Shettima on Monday emphasized the critical role of migrants in societal and economic development while addressing the 10th Annual Migration Dialogue at the State House in Abuja.

This was the number two of Nigeria citizen referenced Kemi Badenoch, a United Kingdom (UK) Member of Parliament of Nigerian descent and leader of the Conservative Party, criticizing her previous remarks about Nigeria.

Shettima said, “We are proud of her in spite of her efforts at denigrating her nation of origin.

“She is entitled to her opinions, even to remove the ‘Kemi’ from her name.

“But it does not change the fact that the greatest black nation on earth is Nigeria.”

It would be recalled that Badenoch, who accused Nigerian politicians in 2022 of misusing public funds for private interests, has faced criticism for her stance on issues relating to her heritage.

Despite her rise as UK Conservative Party leader in November 2024, the Nigerians in Diaspora Commission (NiDCOM) revealed that attempts to engage with her were met with no response.

However, Shettima reiterated the government’s commitment to safeguarding migrants’ rights and recognizing their contributions to national progress.

In his address, the Vice President stated Nigeria’s global significance, noting, “One out of every three or four black men is a Nigerian.

“By 2050, Nigeria will join the United States as the third most populous nation on earth.”

The Vice President’s remarks at the event showed the importance of celebrating the legacy and achievements of migrants while urging them to embrace their heritage.

Media aide to Peoples Democratic Party (PDP), 2023 presidential candidate, Atiku Abubakar, Paul Ibe, has stated that his principal and the Labour Party (LP) counterpart, Peter Obi, have learnt their lessons in the last general election.

Recalls that Atiku and Peter Obi scored over six million votes each in the 2023 presidential election won by the All Progressive Congress (APC) candidate, Bola Tinubu, who got over eight million votes.

Some political analysts have asserted that the PDP ruined its chance to wrest power from the APC by dividing its votes with Peter Obi, who dumped the party for LP.

Speaking on Channels Television’s Politics Today programme on Monday, Paul Ibe said Atiku and Peter Obi would unite to overthrow the APC’s incompetent and clueless administration.

Atiku’s aide also commented on the recent public visits between his principal and Peter Obi, saying synergy is the new name of politics.

He said, “The truth of the matter is that Atiku Abubakar has promoted opposition parties to work together, to come together; that is the only way they can kick out this incompetent and clueless government. And I believe that discussions have been going on.

“Lessons have been learnt from 2023 by all parties including Atiku Abubakar and I believe that it is on the basis of the lessons that have been learnt that they are moving forward and having discussions.

“They have learnt that lesson and want to be united and go forward.”

Ibe added that “all options are on the table” for Atiku but declined comment on whether his principal would step down for Peter Obi in the 2027 election.

Former President Olusegun Obasanjo has described Nigeria’s growing debt profile as a significant burden for both present and future generations.

Speaking during a Zoom interactive programme tagged “Boiling Point Arena” on Sunday, Obasanjo expressed concern over the nation’s rising debt profile.

The PUNCH reported Nigeria’s debt had surged by N12.6tn in three months, reaching N134.3tn ($91.3bn) by the end of the second quarter of 2024.

This marks a 10.35% increase from the N121.7tn recorded in the first quarter of the year.

Reflecting on his tenure, Obasanjo said, “Yes, I was able to secure debt forgiveness for the nation before I left office, but our present debt profile is a problem for both this and the next generation.”

Despite these concerns, the former President maintained optimism about Nigeria’s future, calling for transformative leadership and a robust fight against corruption to improve the nation’s trajectory.

Obasanjo cited South Korea and Singapore as examples of nations whose progress was rooted in merit-based and integrity-driven leadership.

He noted that South Korea’s focus on appointing leaders based on merit and Singapore’s emphasis on integrity under former Prime Minister Lee Kuan Yew are models Nigeria can emulate.

“The best way to fight corruption is from the top. In South Korea, their leaders make appointments based on merit, and that has become the country’s legacy.

“When I took students from the Olusegun Obasanjo Leadership Institute to meet Lee Kuan Yew, he spoke to them about leadership grounded in trust and integrity. Leadership must be about service, not self-enrichment,” Obasanjo said.

He also criticised those who view leadership as a means to personal gain, adding that corruption in government could only be eradicated by creating a critical mass of individuals committed to refusing illicit gains.

“The fight against corruption must be consistent. It’s not a one-regime affair. It must be a daily commitment. If one administration lets its guard down, corruption spreads like a hydra-headed monster,” he warned.

Obasanjo further emphasised the need for constitutional amendments to address Nigeria’s systemic challenges, stating that sustainable development and national integrity hinge on transparency, accountability, and divine purpose.

 “National progress is only achievable through consistency in action, leadership built on accountability, and the collective effort of leaders and citizens committed to a shared vision for the nation,” he said.

Nigeria has ranked fourth among countries whose citizens were granted U.S. citizenship through military naturalization between 2020 and 2024.

During the period under review, the United States naturalised over 52,000 military service members across different countries.

According to data obtained from the U.S. Citizenship and Immigration Services on Monday, 3,270 Nigerian-born service members were granted U.S. citizenship, trailing only the Philippines (5,630), Jamaica (5,420), and Mexico with 3,670.

“Service members born in the Philippines, Jamaica, Mexico, Nigeria, and Ghana — the top five countries of birth among those naturalised — comprised over 38% of the naturalizations since FY 2020.

“The next five countries of birth — Haiti, China, Cameroon, Vietnam, and South Korea — comprised an additional 16% of military naturalisations from FY 2020 to FY 2024,” the analysis of the data partly read.

The data revealed that the number of Nigerian service members gaining U.S. citizenship has steadily increased over the past five years.

From 340 in 2020, the figure rose to 630 the following year, 680 in 2022, 690 in 2023 and 930 in 2024.

The Army accounted for 60% of all military naturalisations during this period, followed by the Navy (20.4%), Air Force (10.6%), and Marine Corps (6.6%). Less than 1% of naturalised service members served in the Coast Guard.

“Service members from the Army (including National Guard and Reserves) comprised almost two-thirds (60%) of all military naturalisations from FY 2020 to FY 2024. Service members from the Coast Guard comprised less than 1%. The Navy accounted for 20.4%, the Air Force for 10.6%, and the Marine Corps for 6.6%,” the report stated.

Age-wise, half of the service members were between 22 and 30 years old when they naturalised.

“Half of all service members were between 22 and 30 years old when they naturalised. The median age of all service members who naturalised between FY 2020 and FY 2024 was 27. More than 17% were 21 and under, while almost 5% were older than 40,” the analysis revealed.

Regarding gender distribution, 73% of the naturalised service members were men.

“Men comprised 73% of all service members naturalized between FY 2020 and FY 2024. The proportion of female service members slightly increased across the years,” the report added.

Senators from Nigeria’s South-East region have resolved to consult with their state governments, constituents, and other stakeholders before making a final decision on the contentious tax reform bills currently before the National Assembly.

Under the umbrella of the South-East Senators’ Forum, the lawmakers emphasized the importance of seeking input from the zone to ensure their position reflects the collective interests of their people.

Leader of the caucus, Senator Eyinanaya Abaribe, disclosed this on Monday while addressing journalists after a closed-door meeting at the National Assembly in Abuja.

The tax reform bills—Nigeria Tax Bill 2024, Tax Administration Bill, Nigeria Revenue Service Establishment Bill, and Joint Revenue Board Establishment Bill—were transmitted to the National Assembly on October 3 by President Bola Tinubu.

While the bills aim to overhaul the country’s tax system, they have faced significant criticism, with some of the opposition taking ethnic and sectional dimensions.

To address these concerns, the Senate constituted a committee to liaise with a federal government delegation led by the Minister of Justice and Attorney General of the Federation, Lateef Fagbemi.

However, the committee’s scheduled meeting last Thursday was postponed due to Fagbemi’s absence.

Abaribe clarified that while South-East senators are generally supportive of the proposed tax reforms, they believe wider consultations are necessary to address the peculiar concerns of their zone.

“As much as the entire senators from South-east are not against the Tax Reform Bills before both chambers of the National Assembly for consideration, we want wider consultations to be carried out on them.

“Specifically, we need to consult with our constituents across the 15 senatorial districts in the zone with our state governments and other critical stakeholders,” he said.

Abaribe, the senator for Abia South Senatorial District, noted that he and other senators from the South-east region have read the bill and are willing to share its benefits when passed to different stakeholders in their area.

“We have read through the bills and want to share our knowledge with other stakeholders from the South-east Zone for a much more equitable framework in the bills that would eventually be passed.

“We are not against the bills but need to consult with our people,” he stressed.

Last Thursday, senators from South-south said they supported the tax reforms regardless of the criticisms because they aimed to strengthen revenue and foster economic stability.

They also warned people opposing the tax reform bills to refrain from expressing regional, ethnic, or tribal sentiments when criticising them.

The Governor of Edo State, Monday Okpebholo has accused his predecessor, Godwin Obaseki of hoarding books and instructional materials donated to school children in the state.

Okpebholo made the allegation during the distribution of notebooks, textbooks, and other instructional materials to schools across the three senatorial districts in the state.

The Governor alleged that Obaseki failed to distribute the books which were donated by President Bola Ahmed Tinubu to mark his one year in office.

He argued that Obaseki’s act of keeping the books from the schoolchildren was nothing short of wickedness.

He said, “These books you see here were donated by the President of Nigeria, Bola Ahmed Tinubu for use by Edo children, but Obaseki refused to distribute the books to our children because the President’s face is affixed.

“I want to thank the President for his kind gesture, and for me, the action of the former governor, Godwin Obaseki, is an act of wickedness.

“This warehouse is filled with books donated by the President of Nigeria but because of wickedness, he prevented the books from being distributed to the children. Today, we are here to distribute the books to our children.

“Keeping these books away from our children is wickedness, and his actions were wrong. He said he has developed the education system using Edobest, but what we see here today is not best for our children.

“Obaseki deprived Edo children of using these books provided by the President of Nigeria, Ahmed Bola Tinubu, and was stored away from the reach of Edo children.”

Nigerians yesterday got an assurance of a better economy next year from the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun.

The minister expressed optimism that the country was gradually moving away from factors that has impacted negatively on its economy and the citizenry.

Edun gave the assurance at a meeting with the House of Representatives Joint Committee on National Planning and Economic Development and Finance on the proposed N47.9 trillion 2025 Budget.

The minister gave an overview of next year’s Appropriation Bill.

He said that going by the projection on increased revenue next year and as other measures being taken by the government, there are indications that the country was moving away from factors that had in the past impacted negatively on the Nigerian economy and affected its people.

Edun said the signs show positive indications of a positive performance of the country’s economy in 2025.

He said: “We do have market pricing and foreign exchange that has resulted in a situation whereby upwards of five per cent of the Gross Domestic Product (GDP) has been lost to plurality of factors benefiting just a few and created long-sighted incentives against growth and investment.”

The minister assured that as government revenue goes up, it will help lower debt servicing and borrowing because as the economy improves, it will become more competitive.

He said: “The deficit of that increase which we hope to achieve less but right now we are assuming is about 9.3 trillion naira in new borrowings and the debt service of about two trillion naira.

“In a nutshell, that backdrop gives you the optimism that the 2025 budget estimates, particularly the one on revenue, will be achieved and the economy will be strong. It will fast up to an inclusive and sustainable growth”.

Chairman of the House Committee on National Planning and Economic Development, Ibrahim Ayokunle (APC, Ogun) asked the minister to give an appraisal of the economy.

Ayokunle said: “But briefly, as we have said, what is the state of our economy, number one, as in our finances. Then number two, in terms of our revenue so far with the projections we have for 2025.

“Let us have an insight into the previous, into whether we are looking good, especially in terms of our GDP and in terms of inflation rates as submitted. So that we can note all this down and we’ll be able to submit our report.”

The committee chair urged the minister to uphold sense of patriotism and continue with the giant strides aimed at ensuring results from President Bola Ahmed Tinubu administration’s efforts at putting a smile on the faces of Nigerians.

Chairman of the House Committee on Finance, James Abiodun Faleke said the committees are looking at the revenue performances of the MDAs as regards the 2024 Budget ahead of the implementation of the proposed 2025 Budget in January.

Faleke said: “We are now in December. By now, the agencies should be able to provide to us with what revenue we have generated between last year and November.

“At least, for 11 months, we should be able to have that. We are just interested in the revenue we have been able to get.

“Apart from that, we also want to see the expenditures as it works. Apart from those who have some levels of percentage collection. We are interested in whether agencies are able to do that.”

The Committee has directed the Managing Director and Chief Executive Officer (MD/CEO), Nigerian Ports Authority (NPA), Dr. Abubakar Dantsoho to appear before it today.

Faleke gave the order when he turned back Dantsoho’s representative, Sabiu Musa Danbatta who informed the committee that, the MD/CEO was on a special assignment, hence his absence.