Fiscal commission: 32 MDAs owe FG over N1.2trn unremitted funds

The Fiscal Responsibility Commission (FRC) says 32 ministries, departments and agencies (MDAs) have failed to remit over N1.2 trillion of their operating surplus to the consolidated revenue fund (CRF) of the federal government.

Victor Murako, FRC executive chairman, said this during a press briefing at the 2021 edition of the Nigerian open government partnership (NOGP) week, in Abuja on Wednesday.

Murako explained that government agencies are expected to remit 80 percent of their operating surplus to the CRF according to the Fiscal Responsibility Act, 2007.

He said this payment is borne out of the need for the federal government to generate funds in order to meet revenue requirements in its annual budget execution.

“Sadly, many MDAs still persist in defaulting and practically keeping money away from the federal government’s reach for funding its budgets. Our records indicate that over N1.2 trillion is still in the hands of defaulting MDAs,” Murako said.

“These figures are confirmed from our analysis of the annual audited financial reports submitted to our commission by the concerned agencies.

“Much more is yet out there in the hands of MDAs that either have failed to dutifully audit their accounts or that have done so, but choose not to forward copies of their audited financial reports to the commission as required by law.”

Some of the 32 defaulting MDAs include the National Broadcasting Commission (NBC); Federal Radio Corporation of Nigeria (FRCN); Bank of Industry (BOI); Nigeria Immigration Service (NIS), National Drug Law Enforcement Agency (NDLEA); and Small and Medium Enterprises Development Agency of Nigeria (SMEDAN).

The FRC boss, however, said that over N2.15 trillion has been paid into the CRF by government agencies and corporations since the commission’s establishment.

“Through the persistent and continuous engagement of MDAs by the Fiscal Responsibility Commission and especially with the support of the National Assembly, the Federal Government’s share of operating surplus from these corporations has continued to increase over the years.

“From our records, the total figure paid as operating surplus since the establishment of the FRC to date is beyond N2.15tn which, by the way, could not have been possible without the Act and the commission, given that there would have been no law, rule, regulation or institution requiring such returns.”

Earlier this month, the senate said some MDAs did not remit over N3 trillion to the CRF between 2014 and 2020.