The Federal Government has said that it is working on a plan to sanction ministries, departments and agencies if they fail to meet their revenue targets.
The Minister of Finance, Budget and National Planning, Zainab Ahmed, said this at the Public Presentation and Breakdown of the Highlights of the 2022 Appropriation Bill in Abuja on Friday.
According to the minister, this is an attempt to boost the revenue performance and remittance of government-owned enterprises.
“We are working to ensure that MDAs appropriately account for and remit their internally generated revenues.
“GOEs’ revenue performance / remittance will be enhanced through effective implementation of the enhanced performance management framework, including possible sanctions should they default on their targets; tighter expenditure control including enforcing of Finance Act 2020 provision limiting GOEs cost-to-revenue ratio to maximum of 50 per cent ; and regular independent monitoring and reporting of revenue and expenditure performance of GOEs by both the Budget Office of the Federation and the Office of the Accountant General of the Federation,” she said.
She reiterated the fact that the agencies were limited to spending not more than 50 per cent of what they generated.
“These agencies cannot spend more than 50 per cent of what they generate. And this is one major revenue that would be coming into the government’s treasury,” she said.
She further stated that there was a robust monitoring mechanism in place, which would help in assessing the performance of agencies, adding that the new plan to sanction them for revenue target failure would be included in the Finance Act 2021 or as a directive from the President.
“We have some provisions that we hope to make in the Finance Act that we are currently working on. But in addition to that, we also have a robust monitoring mechanism that is regular and continuous and tracking the performance and alerting these agencies where they are already falling short.
“It did not used to happen. A long time ago, people just worked and tracking was not done. By the time you make an assessment and underperformance is reported, it is already late.”
She added that continuous monthly reconciliation was being done with the revenue generating agencies.