The Nigerian Senate has issued a strong warning to federal ministries, departments, and agencies (MDAs), threatening to withhold their 2025 budget allocations if they fail to provide comprehensive expenditure reports for 2024.
This decision follows widespread discrepancies in financial records and concerns over inefficient revenue management.
During a session led by the Senate Committee on Finance, chaired by Senator Sani Musa, lawmakers scrutinized the state of financial accountability across MDAs.
The committee flagged inconsistencies in revenue reports, poor budget performance, and delays in fund disbursements. Agencies such as the Nigerian National Petroleum Company Limited (NNPCL) and others were highlighted for discrepancies in remittances and dividends.
The committee also criticized the centralized payment system managed by the Accountant General’s office, attributing delays in project funding and execution to bureaucratic bottlenecks.
Lawmakers reported that contractors were allegedly pressured to pay unofficial fees to expedite payments, further eroding public trust.
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In her defence, the Accountant General explained that the centralized system was designed to reduce inefficiencies and prevent unspent funds from being rolled over.
However, senators argued for more autonomy for MDAs while ensuring oversight to prevent misuse.
The Senate plans to summon additional stakeholders, including the Revenue Mobilization Allocation and Fiscal Commission (RMAFC) and the Nigerian Extractive Industries Transparency Initiative (NEITI), for a joint review of financial irregularities.
Deliberations on whether to reform or abolish the centralized payment system are also expected to address delays and inefficiencies in budget implementation.
