Finance Ministry Begins Recovery Process For Un-remitted MDAs 450bn Naira

Nigeria-NairaThe Federal Ministry of Finance in Nigeria has set up a committee to recover un-remitted operating surpluses of Ministries Department and Agencies of the government, running into 450 billion Naira.

The committee led by the Accountant General of the Federation, Mr Ahmed Idris, is to reconcile the operating surpluses of 31 revenue-generating agencies of government from 2010 to 2015.

The findings of the committee so far, have shown under-remittance of over 450 billion Naira, which has accrued within the period.

The Finance Ministry stated that staff of the Office of the Accountant General of the Federation have critically reviewed the accounting statements of these agencies, which include the Central Bank of Nigeria (CBN), Petroleum Technology Development Fund, (PTDF), National Agency for Food and Drug Administration and Control (NAFDAC), Nigerian Television Authority (NTA), and the Securities and Exchange Commission (SEC), among others.

The Committee will invite the management of these agencies to explain why their operating surpluses have not been remitted as mandated by the Fiscal Responsibility Act 2007.

Sections 21 and 22 of the Fiscal Responsibility Act 2007, specifically states that: The government corporations and agencies and government owned companies listed in the Schedule to this Act (in this Act referred of as “the Corporations”) shall, not later than six months from the commencement of this Act and every three financial years thereafter and not later than the end of the second quarter of every year, cause to be prepared and submit to the Minister their Schedule estimates of revenue and expenditure for the next three financial years.

The Act further stated that each of the bodies referred to in sub-section (1) of the section should submit to the Minister not later than the end of August in each financial year: an annual budget derived from the estimates submitted in pursuance of subsection (1) of this section; and a projected operating surplus which shall be prepared in line with acceptable accounting practices.

It also stated that the Minister shall cause the estimates submitted in pursuance of subsection (2) of this section to be attached as part of the Appropriation Bill to be submitted to the National Assembly.

Another part of the Act that pertains to the MDAs stated that notwithstanding the provisions of any written law governing the corporation, each corporation shall establish a general reserve fund and shall allocate thereto at the end of each financial year, one-fifth of its operating surplus for the year.

“The balance of the operating surplus shall be paid into the Consolidate Revenue Fund of the Federal Government not later than one month following the statutory deadline for publishing each corporation’s accounts,” the Act added.

Some of these agencies have incurred huge expenses on overseas training and medicals, and huge expenses on behalf of supervisory ministries and/other organs of government involved in oversight or regulatory functions without appropriate approval.

Other infractions include payment of salaries and allowances to staff and board members, governing councils, and commissions which are outside or above the amount approved by the Revenue Mobilisation and Fiscal Allocation Commission (RMFAC) and the National Salaries, Income and Wages Commission.

The list also includes unacceptable expenses incurred on donations and sponsorships among others. It also contained unfavourable contract signed for revenue collection by a third party; granting of staff loans that have not been repaid as well as sale and transfer of assets to board members, among others.

According to the Finance Ministry, the overall effect of these practices is that operating surpluses of these agencies are lower than it should be.

As a result of this, the Honourable Minister of Finance, Mrs Kemi Adeosun has directed the Accountant General of the Federation to issue a circular that will limit allowable expenses that can be spent as part of measures to ensure these agencies face strict monitoring.

This development is part of the resolve of the Honourable Minister to ensure that leakages are tackled.

Buhari Appoints New Heads For 13 FG Agencies

Muhammadu-Buhari-UNGeneral-AssemblyPresident Muhammadu Buhari on Monday approved the appointments of Chief Executives for 13 Federal Government agencies.

A list of the new Chief Executives was contained in a statement by the Director of Press in the Office of the Secretary to the Government of the Federation (OSGF), Bolaji Adebiyi.

The appointments are:

Joseph Ari, Director-General, Industrial Training Fund (ITF).

Dr. Isa Ibrahim, Director-General, National Information Technology Development Agency (NITDA).

Simbi Wabote, Executive Secretary, Nigerian Content Monitoring Board.

Aboloma Anthony, Director-General, Standards Organisation of Nigeria (SON).

Mamman Amadu, Director-General, Bureau of Public Procurement.

Sharon Ikeazor, Pension Transitional Arrangement Directorate.

Princess Akodundo Gloria, National Coordinator, New Partnership for Africa’s Development.

Mr Ahmed Bobboi, Executive Secretary, Petroleum Equalisation Fund.

Umana Okon Umana, Managing Director, Oil and Gas Free Zone Authority.

Sa’adiya Faruq, Federal Commissioner, National Commission for Refugees, Migrants and Internally Displaced Persons.

Usman Abubakar, Chairman, Nigeria Railway Corporation (NRC).

Dr. Bello Gusau, Executive Secretary, Petroleum Technology Development Fund (PTDF).

Yewande Sadiku, Executive Secretary, National Investment Promotion Commission (NIPC).

NEITI Commences Audit Of Allocations To Oil-Producing States

The Nigeria Extractive Industries Transparency Initiative (NEITI) has commenced the audit of physical allocations and statutory disbursement of the extractive industry from 2007 to 2011 with an initial focus on the nine oil-producing states.

This audit is coming in line with the decision of the Federal Executive Council at its November 28, 2013 meeting.

NEITI is engaging an indigenous audit firm, S.A.I.O. Partners to audit the allocations to the nine states benefitting from the 13 per cent oil derivation.

The audit is expected to be completed within the next nine months

The states benefitting from the 13 per cent oil derivation are the oil-producing states of Abia, Akwa Ibom, Bayelsa, Cross River, Delta, Edo, Imo, Ondo and River.

The exercise will also be extended to key entities like the Central Bank of Nigeria, the Niger Delta Development Commission (NDDC) and the Petroleum Technology Development Fund (PTDF).

The audit will also cover the federal government’s share of derivation and ecology as well as the management of the excess crude account.

Speaking at a ceremony to sign the Memorandum of Understanding with the auditing firm, the executive secretary of NEITI, Ms Zainab Ahmed said the exercise is not a witch-hunt but one that will create data for national planning and development.

The audit, which is in accordance with provisions of Section 2 of the NEITI Act 2007.