NAFDAC, NERC, NIGCOMSAT, OTHERS OPT OUT OF FEDERAL BUDGET

Following the ongoing investigation


by the Senate Committee Finance on Remittances of Internally Generated Revenue (IGR) by Ministries, Departments and Agencies (MDAs) and payment of 1% Stamp Duties on all Federal contracts pursuant to reducing yearly budget deficit and getting more revenue to fund budgets, some government agencies have started opting out of funding from the Federal Budget and refunding millions of due revenues to Consolidated Revenue of the Federation (CRF). 

While answering questions from Senator Solomon Adeola (APC, Lagos West) led Finance Committee, the heads of National Agency for Food and Drugs Administration, NAFDAC, NIGCOMSAT and Nigeria Electricity Regulatory Commission, NERC, to varying degrees informed that their agencies should be taken out from the Federal budget. 

Professor Moji Adeyeye, the Director-General of NAFDAC, told the Committee that her agency can conveniently exit the Federal budget to the extent of all overheads as well as capital provisions adding that they can actually start the implementation from the 2021 Budget to free funds for other uses and hopefully reduce the size of budget deficit of about N6 trillion. 

Similarly, the Chairman of Nigeria Electricity Regulatory Commission, NERC Mr. James Momoh, also stated that his agency is ready to completely exit the Federal budget while promising to refund accumulated N28million being 1% Stamp Duties on contracts awarded by the agency that were not remitted by contractors within one week. 

The NIGCOMSAT Limited, another agency of the Federal Government, also told the Committee that they are ready to exit the Federal budget with regards to overheads. 

Its Director General Dr, Abimbola Alale, told the Committee that the agency will seek partners to inject capital into the agency programmes to yield revenue for the Government as lack of capital in sufficient size has been the major impediment of the agency. 

All the three agencies and ICPC,x which appeared before the Committee were asked to reconcile their IGR and 1% Stamp Duty accounts for remittance running into billions of Naira with Fiscal Responsibility Commission, FRC and report back with the reconciliation for the Committee to determine if any remittance is still outstanding to the CRF. 

Senator Adeola, the Chairman of the Committee thanked the DG of NAFDAC and heads of other agencies for their magnanimity in proposing to exit the Federal budget saying that the Federal Government can no longer fund agencies that generate huge revenues that are spent by the agencies and still continue to fund them on overheads, capital and salaries every year. 

“I want to commend the NAFDAC DG in particular for willingly opting out of the Federal budget beginning from this year’s budget. No doubt such gesture will go a long way in reducing our yearly deficits and reduce our incessant borrowing to fund government activities” he stated. 

Before today’s hearing some agencies of Government including National Office of Technology Acquisition, NOTAP and Nigeria Electricity Management Service Agency, NEMSA, among others have indicated willingness to exit the Federal budget in part or whole following the oversight activities of the Committee with over N50 millions already detected and paid back to Government on 1% Stamp Duty alone by some of the over 400 revenue generating agencies under investigation. 

Comments

Post a Comment

Popular posts from this blog

Akpabio celebrates Anyim at 63

Image
Akpabio celebrates Anyim at 63 President of the Senate, Senator Godswill Akpabio, CON has congratulated a former President of the upper chamber, Senator Anyim Pius Anyim, GCON as he marks his 63rd birthday. Akpabio, in a birthday message signed by Special Adviser on Media and Publicity, Hon. Eseme Eyiboh described Anyim, as a "True democrat and accomplished politician." He applauded Senator Anyim's efforts in fighting for and instituting legislative independence in the Senate in his hey days as the presiding officer. "On behalf of my family, constituents, the Senate and the National Assembly, I wish to heartily rejoice with one of my predecessors, a gentleman and learned brother, Distinguished Senator Anyim Pius Anyim, GCON on his 63rd birthday. I pray to the Almighty God to bless him with many more healthy and fruitful years ahead" Akpabio said "I must acknowledge the indelible role played by Senator Anyim in the growth and sustenance of our cu...
Read more

*Senate considers establishment of North Central Development Commission

Image
The bill seeking the establishment of North Central Development Commission (NCDC), being sponsored by the senator representing Benue South Senatorial District and Senate Minority Leader, Comrade Abba Moro PhD and co-sponsored by all the senators from North Central, on Wednesday, passed Second Reading on the floor of the senate.  The bill, which passed First Reading on the 5th of October, 2023, was first sponsored in the 9th Senate by Senator Moro where it passed First and Second Readings but could not get presidential assent before the expiration of the 9th Senate. In his lead debate, the Senate Minority Leader said the Commission, when established would be saddled with the responsibility of receiving and managing funds from the federal government and donors for the resettlement, rehabilitation, integration and reconstruction of roads, houses and business premises of victims of flood and farmers/herders clashes, communal clashes, construction of large format drainage sy...
Read more

N30 trillion Ways and Means: Akpabio inaugurates Ad-hoc Committee, insists on impartiality.President of the Senate, Godswill

Image
N30 trillion Ways and Means: Akpabio inaugurates Ad-hoc Committee, insists on impartiality. President of the Senate, Godswill Obot Akpabio, on Monday, inaugurated the Ad-hoc Committee on Ways and Means. The Committee is charged with investigating the sum of N30 trillion which was released by the Central Bank of Nigeria, CBN to fund projects in President Muhammadu Buhari’s administration. The fund which passed through the National Assembly was without details despite the commitment of the executive arm of government to do so. In his inaugural address, the Senate President urged the Committee members to be impartial, non-compromising and confidential in handling the affairs of the committee. The Committee followed the adopted resolution of the Senate Joint Committees on Banking, Insurance and other Financial Institutions; Finance; National Planning; Agriculture; and Appropriations. Akpabio said the 10th Senate believes in transparency, accountability and good governance, addi...
Read more