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December 9, 2024
2025 Budget: Senate threatens Zero allocation for non-compliant MDAs
2025 Budget: Senate threatens Zero allocation for non-compliant MDAs
…Demands Transparency in Revenue and Expenditure Reporting
…Calls for Accountability Over Budget Implementation Delays
By Henry Umoru
ABUJA – The Senate has issued a stern warning to Federal Government Ministries, Departments, and Agencies (MDAs), threatening zero allocation in the 2025 budget if they fail to present expenditure records for the 2024 appropriations.
The ultimatum was delivered during an investigative hearing chaired by Senator Sani Musa (APC, Niger East) of the Senate Committee on Finance. The session focused on remittance of internally generated revenue, fiscal accountability, and overall financial management in Nigeria.
Senators expressed frustration over discrepancies in financial records, highlighting gaps in revenue generation and expenditure tracking. Senator Musa emphasized the need for accountability, stating:
“This performance index exercise for MDAs is preparatory to the 2025 budget. Any agency that fails to appear before this committee risks zero allocation because records of how appropriations for 2024 were expended must be backed with facts and figures.”
Key concerns included discrepancies in reports from agencies like the Nigerian National Petroleum Corporation (NNPC), mismanagement of LNG dividends, and unexplained variances in financial inflows, including loans and grants.
The Accountant General of the Federation, Oluwatoyin Madein, presented a summary of 2024 revenue and expenditures. Her report revealed that of the ₦8 billion allocated for capital projects, only ₦2.9 billion (25%) had been released by September 2024, causing significant project delays.
Lawmakers criticized the centralized payment system managed by the Accountant General’s Office, noting that over 700 MDAs are forced to process payments through a single office, leading to delays in project execution.
Senators also alleged that contractors are required to pay under-the-table fees, reportedly 5% of contract values, to expedite payments—a practice they condemned as undermining accountability.
The committee demanded comprehensive reports on several issues, including:
Revenues from public-private partnerships.
Internally generated revenue across MDAs.
Discrepancies in the 1% stamp duty collectionsA detailed breakdown of foreign service allowances, which surged from ₦7 billion in 2024 to ₦35 billion in 2025.
Accountability Measures and Next Steps
The committee resolved to invite other agencies, including the Revenue Mobilization Allocation and Fiscal Commission (RMAFC) and the Nigerian Extractive Industries Transparency Initiative (NEITI), for joint sessions to address discrepancies.
Senator Amos Yohanna (Adamawa North) summarized the concerns: “Federal revenue is suffering because of poor budget performance. Taxes remain low because payments are delayed. We need a system that works.”
The Accountant General defended the centralized payment system, claiming it prevents rollover of unutilized funds. However, lawmakers demanded detailed explanations for delays and inefficiencies.
The committee gave the Accountant General until Wednesday to provide the requested reports ahead of a follow-up meeting. They also pledged to hold stakeholders accountable for ensuring transparency and efficient management of public funds.
As the fiscal year ends, the Senate aims to reform financial oversight mechanisms and restore public trust in budget implementation.
“This committee has the constitutional right to oversee every agency,” Senator Musa concluded, reaffirming the Senate’s commitment to fiscal accountability and transparency.
Source :Vanguard
