The Senate Finance Committee has warned government agencies that fail to account for their 2024 budget allocations, threatening to deny them funding in the 2025 fiscal year.
During an investigative hearing on Monday, the committee voiced concerns over financial irregularities discovered in the records of several Ministries, Departments, and Agencies (MDAs).
Senator Sani Musa (APC, Niger East), Chairman of the Finance Committee, stated that agencies neglecting invitations to explain their expenditure risk exclusion from the 2025 budget.
“This performance index exercise on the various MDAs is preparatory to the 2025 budget. Any agency that fails to appear before this committee upon invitation risks zero allocation in the 2025 budget because records of how appropriations made for 2024 are expended must be provided with facts and figures,” Musa emphasized.
The Accountant-General of the Federation, Oluwatoyin Madein, presented a summary of the Federal Government’s internally generated revenue up to September 2024. This included ₦2.7 trillion in independent revenue, ₦2.3 trillion in operating surplus from Government-Owned Enterprises, and ₦344 billion from MDAs. However, the Senate criticized the report for omitting critical financial details.
In response, the committee resolved to summon additional stakeholders, such as the Nigerian Extractive Industries Transparency Initiative and the NNPCL, for a joint review to address discrepancies and ensure transparency.
The committee also raised concerns over the centralized payment system managed by the Accountant-General’s office, noting its inefficiencies and delays in releasing capital budgets. Members alleged that contractors are often required to pay under-the-table fees, amounting to 5% of the contract value, to expedite payments—a practice they condemned as corrupt and detrimental to public trust.
The Accountant-General defended the centralized system as a measure to prevent funds from being mismanaged or rolled over annually. However, she was given until Wednesday to provide complete financial reports before the next meeting scheduled for 2 PM the same day.
The Senate’s effort reflects a growing commitment to enhancing financial oversight, improving transparency, and reinforcing accountability mechanisms in Nigeria’s fiscal policy framework.
