MDAs Face Total Budget Blackout As Senate Demands Full Transparency

MDAs Face Total Budget Blackout As Senate Demands Full Transparency

The Senate has issued a stern warning to the federal ministries, departments, and agencies (MDAs), threatening to cut their allocations to zero in the 2025 fiscal year if they fail to attend….READ MORE…

hearings aimed at reviewing their 2024 expenditure records.

This warning came after concerns were raised over discrepancies in Nigeria’s revenue generation and financial tracking, highlighting the need for stronger cooperation between the Office of the Accountant General of the Federation and the legislative body.

The Senate Committee on Finance, led by Senator Sani Musa, convened an investigative hearing on the management of internally generated revenue, fiscal accountability, and the general state of financial governance. During the session, lawmakers, alongside the Accountant General of the Federation, Oluwatoyin Madein, criticized discrepancies found in agency records, particularly the Nigerian National Petroleum Company Limited (NNPCL) and the Federation Account.

Senator Musa underscored the need for transparency, stating that without accurate financial data, effective oversight and policymaking are impossible. He emphasized that any MDA that fails to attend hearings risks being excluded from the 2025 budget allocations, stressing the importance of providing clear reports on the expenditure of 2024 appropriations.

The lawmakers also expressed frustration over delays in utilizing capital budgets due to a centralized payment system, managed by the Accountant General’s office, which they claim leads to inefficiencies and disrupts project execution. Criticisms were also leveled against contractors allegedly paying bribes to expedite payments.

The Accountant General reported a modest capital allocation for 2024, with only 25% of the allocated N8 billion released for project execution, which lawmakers noted hindered the timely completion of government projects.

The committee, citing gaps in the financial reports, resolved to invite additional agencies for a joint session to address inconsistencies in submitted reports. These agencies include the Nigerian Extractive Industries Transparency Initiative (NEITI) and the NNPCL.

The Senate’s actions reflect growing efforts to strengthen financial oversight, with a clear call for improving transparency and fiscal accountability in managing Nigeria’s finances. Lawmakers are also exploring the potential reform or abolition of the centralized payment system, aiming to streamline the disbursement of funds and better support project delivery.

Senator Amos Yohanna summarized the concerns, emphasizing the need for a functional revenue system to drive Nigeria’s economic growth and development. The Senate has asked the Accountant General to provide full details of the financial bottlenecks by tomorrow, with a follow-up session scheduled for further discussion.

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