MDAs Record N13.72bn Revenue Shortfall
The sum of N622.9bn was remitted to the Federal Government by its ministries, departments and agencies between January and December last year as captured under the Fiscal Responsibility Act.
The revenue collection of N622.9bn when compared to the N631.08bn target set by the Federal Government for the 2019 fiscal period represents a shortfall of N13.72bn.
The FRA stipulates that any government agency that generates revenue must remit 80 per cent of their operating surplus to the Consolidated Revenue Fund account.
Some of them are the Petroleum Products Pricing Regulatory Agency, the Central Bank of Nigeria, Nigerian Ports Authority, Nigerian Maritime Administration and Safety Agency, and the Federal Airport Authority of Nigeria.
There are also the Nigerian Postal Service, Nigerian Communications Commission, National Inland Water Ways Authority, National Information Technology and Development Agency and the Nigerian Airspace Management Agency.
Others are the National Examination Council, Nigerian Television Authority, Nigerian Shippers’ Council, National Health Insurance Scheme, National Pension Commission, Corporate Affairs Commission and Standards Organisation of Nigeria.
Over the years, many of these agencies have reportedly been underpaying revenue into the coffers of the government.
The development is said to have made it difficult for the Federal Government to achieve its revenue target based on the annual budget approved for the agencies.
Findings revealed that out of the 12 months in 2019, the agencies surpassed their prorated monthly revenue target five times.
The prorated budgeted monthly revenue target for the agencies was N52.6bn. A further analysis of the revenue figures as obtained from the Office of the Accountant-General of the Federation showed that in January, the sum of N33.35bn was generated.
The figure dropped in February to N14.12bn before rising to N64.33bn and N26.89bn in March and April respectively.
For the months of May, June, July and August, the analysis of the financial statement showed that the sums of N17.85bn, N59.46bn, N99.31bn and N21.73bn were generated by these agencies respectively.
For September, October, November and December, the OAGF report showed that about N86.28bn, N36.31bn, N47.01bn and N116.3bn were generated respectively.
The Director-General, Budget Office of the Federation, Mr Ben Akabueze, had during a meeting with revenue generating agencies said despite the over N40trn Federal Government’s investments in these agencies, the government had yet to fully enjoy the dividend of such investments.
He said what was usually remitted to the treasury in terms of dividend or surplus at the end of each operating year was mostly insignificant.
He said, “The continuous underperformance of the government-owned enterprises has made it difficult to achieve enhanced domestic revenue mobilisation from operating surpluses of the GOEs.
“The record shows that few of the government-owned enterprises declare surpluses. In effect, the Nigerian taxpayers have not benefitted much from these investments.”
The DG said the Federal Government would strengthen its control mechanism to make the revenue process more transparent and inclusive. To achieve this, Akabueze said reforms would be implemented with increased vigour to improve revenue collection and expenditure management.