The Senate Committee on Public Accounts has expressed strong disapproval over the continued failure of several government agencies to respond to audit queries related to the 2019 financial year. These queries, raised by the Auditor-General of the Federation, concern serious financial issues, including unremitted funds and other irregularities. Despite multiple invitations and opportunities to explain their actions, agencies such as the Nigerian National Petroleum Company Limited (NNPCL), the Federal Inland Revenue Service (FIRS), and the Nigeria Police Force have not provided satisfactory responses.
Other agencies also involved in the ongoing issue include the Nigerian Immigration Service (NIS), the Nigeria Mining Cadastral Office, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Federal Ministry of Industry, Trade, and Investment. In total, 15 agencies are under scrutiny, and the Senate’s frustration with their evasiveness continues to grow.
The issue first came to light when the Senate Committee on Public Accounts began reviewing the 2019 audit report in October 2023. The audit queries raised against these agencies are centered around financial mismanagement, unremitted revenues, and failure to follow proper financial procedures. The Senate Committee, which is tasked with overseeing public finances, expressed dissatisfaction with how these agencies have ignored their invitations to explain the discrepancies in their financial activities.
Senator Ahmed Wadada Aliyu, the Chairman of the Public Accounts Committee, was particularly vocal about the problem. According to him, these agencies have been given several chances to respond to the audit queries but have failed to do so. The situation has reached a point where the Committee feels it has no choice but to proceed with considering the audit queries without the input of the agencies involved.
“This is extremely frustrating,” Senator Wadada stated. “We have made every effort to engage with these agencies and have given them plenty of time to respond. However, they have continuously refused to engage with us or defend themselves.”
The failure to respond to the Senate’s queries involves a number of significant government bodies. Among the most prominent are the NNPCL, the FIRS, and the Nigeria Police Force. These agencies have been accused of various financial infractions, including failing to remit large sums of money into the Federation Account, which is the pool of funds shared between the federal and state governments.
The Nigerian National Petroleum Corporation Limited (NNPCL), for instance, owes approximately N940.62 billion. This amount is said to be the result of revenues that should have been paid into the government’s central account but were not. Similarly, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is accused of failing to remit a combined sum of $23.81 million and N1.94 trillion. These financial shortfalls are significant, especially when one considers the size of Nigeria’s national budget.
In addition to the NNPCL and NUPRC, the FIRS has also come under scrutiny. The tax agency is reportedly responsible for failing to remit $141.25 million and N1.04 trillion. This has raised concerns about the government’s ability to manage its finances and generate sufficient revenue to fund essential public services.
The Central Bank of Nigeria (CBN), the Ministry of Solid Minerals Development, and other agencies, such as the Ministry of Women Affairs and the Nigeria Communications Satellite Limited (NIGCOMSAT), have also been implicated. The total amount of unremitted revenue from these agencies is said to amount to over N4.1 trillion, as of June 2024, according to a report by the Federation Account Allocation Committee (FAAC).
The repeated failure of these agencies to respond to audit queries is seen as a serious threat to the effectiveness of the government. The Senate Committee on Public Accounts has made it clear that these issues need to be addressed immediately. If the agencies continue to ignore the Senate’s requests, the Committee has warned that it will adopt the position of the Auditor-General’s report, which could result in severe consequences for the agencies involved.
Senator Wadada stressed the importance of accountability in government, stating that without proper oversight, the Nigerian government will not be able to achieve its goals. “The current administration, under the leadership of President Bola Ahmed Tinubu, is committed to making Nigeria better. However, this cannot be achieved if agencies continue to act irresponsibly and refuse to be held accountable,” Wadada explained.
The Senate’s stance is clear: agencies that fail to attend hearings and respond to queries will have their financial records scrutinized, and the recommendations of the Auditor-General will be upheld. This means that the agencies could face severe penalties, including sanctions and potential loss of public trust.
The Senate Public Accounts Committee has taken a firm position on how to handle these recalcitrant agencies. Moving forward, the Committee will no longer wait for these agencies to voluntarily appear before it. Instead, it will proceed with the audit reviews based on the findings of the Auditor-General’s reports.
Senator Wadada emphasized that this approach is in line with the rules of engagement for the Senate Committee. Under these rules, accounting officers of agencies are required to attend public hearings and respond to questions regarding their financial activities. This is essential for transparency and for making informed decisions about public funds.
“We are committed to doing our job, regardless of the resistance we face from these agencies,” said Wadada. “The actions of these agencies are undermining the efforts of the government to improve the nation’s finances, and we will not let this continue unchecked.”
The Committee has also hinted that it may amend its rules to include stricter consequences for agencies that fail to attend hearings or respond to audit queries. This could mean more severe penalties for non-compliance, which would force agencies to take the process more seriously.
The ongoing failure of government agencies to properly account for their financial activities comes at a time when Nigeria is grappling with significant financial challenges. According to reports, the country is facing a large budget deficit, and the government is under increasing pressure to generate more revenue and reduce its dependence on oil exports.
The unremitted funds from agencies like the NNPCL, FIRS, and others represent a missed opportunity for the government to shore up its finances and address its budget shortfalls. These agencies are critical to Nigeria’s revenue generation, and their failure to meet their obligations has a direct impact on the country’s financial health.
The recent revelations about unremitted funds highlight the scale of the problem. As of June 2024, the sum of N4.1 trillion in unremitted funds was identified, with the NNPCL and FIRS being the largest offenders. This money could have been used to fund essential services, infrastructure projects, and other initiatives to improve the lives of Nigerians.
The Senate’s decision to proceed with the audit queries, even without the cooperation of the affected agencies, is a step in the right direction. It sends a strong message that no agency, regardless of its size or importance, is above scrutiny. The government must ensure that all public agencies are held accountable for their financial activities, and that any money owed to the Federation Account is paid without delay.
The continued evasiveness of these agencies is a serious concern for Nigeria’s efforts to improve governance, reduce corruption, and ensure that public resources are used efficiently. The Senate Committee on Public Accounts has made it clear that it will not tolerate such behavior, and it will continue to push for greater transparency in the management of public funds.
The Senate’s stance on the failure of government agencies to respond to audit queries is a critical issue that must be addressed. Nigeria’s financial future depends on the effective management of public resources, and this can only be achieved through transparency, accountability, and a commitment to good governance. The Senate’s actions in holding these agencies accountable are an important step in ensuring that Nigeria’s financial system is more transparent and more efficient in the future.
