2025 Budget: Senate threatens zero allocation for non-compliant agencies
The Senate has issued a stern warning to Federal Government Ministries, Departments, and Agencies (MDAs), threatening zero allocation in the 2025 budget if they fail to present expenditure records for the 2024 appropriations.
The ultimatum was delivered during an investigative hearing chaired by Senator Sani Musa (APC, Niger East) of the Senate Committee on Finance. The session focused on remittance of internally generated revenue, fiscal accountability, and overall financial management in Nigeria.
Senators expressed frustration over discrepancies in financial records, highlighting gaps in revenue generation and expenditure tracking. Senator Musa emphasized the need for accountability, stating:
“This performance index exercise for MDAs is preparatory to the 2025 budget. Any agency that fails to appear before this committee risks zero allocation because records of how appropriations for 2024 were expended must be backed with facts and figures.”
Key concerns included discrepancies in reports from agencies like the Nigerian National Petroleum Corporation (NNPC), mismanagement of LNG dividends, and unexplained variances in financial inflows, including loans and grants.
The Accountant General of the Federation, Oluwatoyin Madein, presented a summary of 2024 revenue and expenditures. Her report revealed that of the ₦8 billion allocated for capital projects, only ₦2.9 billion (25%) had been released by September 2024, causing significant project delays.
Lawmakers criticized the centralized payment system managed by the Accountant General’s Office, noting that over 700 MDAs are forced to process payments through a single office, leading to delays in project execution.
Senators also alleged that contractors are required to pay under-the-table fees, reportedly 5% of contract values, to expedite payments—a practice they condemned as undermining accountability.
The committee demanded comprehensive reports on several issues, including: Revenues from public-private partnerships, Internally generated revenue across MDAs, and Discrepancies in the 1% stamp duty collections.
