The Federal House of Representatives Committee on Finance has mandated the Central Bank of Nigeria (CBN), the Nigeria Communications Commission (NCC) and 13 other organisations to compulsorily appear before it to explain the generation and spending of their internal revenues.
About 60 revenue-generating government agencies had been invited to provide information on their internally generated revenue and remittances to government but 15 of them did not show up at the meeting, prompting Chairman of the committee, Hon. Abdulmumin Jibril to issue the 24-hour ultimatum and threaten to issue warrant of arrest against chief executives who shun the invitation.
Organisations that were not represented at the meeting include the Federal Inland Revenue Service (FIRS), the Nigerian Ports Authority (NPA), Federal Airports Authority of Nigeria (FAAN), National Airspace Management Agency (NAMA) and the National Export Processing Zones (NEPZ), Assets Management Corporation of Nigeria (AMCON), Standards Organisation of Nigeria (SON), the National Pension Commission, the Nigeria Customs Service, the Nigeria Civil Aviation Authority and the Maritime Administration Agency.
While declaring the meeting open earlier, Speaker of the House, Aminu Waziri Tambual blamed disruption of national budgeting process on failure of revenue generating agencies to remit funds to the federation account as spelt out by law.
“For far too long, the menace of revenue leakages has dominated the finances of our country to the detriment of our economy and wellbeing of the people of Nigeria. The constitution and our laws on revenue generation and expenditure have been observed more in breach,” Tambuwal, represented by Deputy Speaker, Emeka Ihedioha, said.
“A situation where actual government revenue and expenditure is unknown because revenue earning agencies of government spend the funds as they deem fit can no longer be tolerated. A situation where over 50 per cent of actual government revenue is spent outside the national annual budget has put Nigeria in a fiscal crisis.
“It makes our budgeting system inefficient, ineffectual, and opaque. It does not promote accountability, transparency, responsiveness and openness that is the hallmark of a democratic government. This should not, and cannot be allowed to continue.”
In his welcome remarks, Chairman of the Committee, Abdulmumin Jibril explained that the meeting was specifically targeted at fact-finding so that the committee can make the needed input to the fiscal framework of the country.
“Government’s gross collectible revenue figure has been understated as it does not capture the gross revenue collections of various government-owned organisations and only reflects a net operating surplus position,” he lamented.
“For example, if a corporation earns N100bn internally generated revenue and spends N90bn, it then has an operating surplus of N10bn. In line with the Fiscal Responsibility Act, the corporation is entitled to retain N2bn in its general reserve while N8bn should be paid to the Consolidated Revenue Fund of the Federal Government. But this has not been the practice.”
The surprise of the day was the committee’s dramatic decision to walk out Mr. Abatcha Bulama, the director of finance at the Securities and Exchange Commission (SEC) who was representing Director General, Arunma Oteh, saying the House had consistently demanded the removal of Oteh. And until that demand is granted, it would have no dealing of any kind with SEC.
“We mistakenly advertised your name for this meeting. As you are aware, the House resolved not to have anything to do with you for now, so you may kindly take your leave now. We wish you well,” the chairman told Bulama.
