MDAs face zero budget allocation as Senate Committee insists on transparency

The Senate Committee on Finance on Monday issued a stern warning to Ministries, Departments, and Agencies (MDAs) that fail to appear before it: zero allocation in the 2025 budget.

This warning comes as the committee conducts an investigative hearing into revenue generation, remittance, and expenditure by MDAs within the 2024 fiscal year.

According to Sani Musa, Senator representing Niger North and Chair of the panel, the 2025 budget will be heavily influenced by the MDAs’ fiscal performance in 2024. “Any agency that fails to appear before this committee upon invitation risks zero allocation in the 2025 budget,” he said. “This is because the records of how appropriations made for 2024 were expended must be provided with facts and figures.”

The committee’s warning is a clear indication of its commitment to promoting transparency and accountability in governance. By holding MDAs accountable for their fiscal performance, the committee aims to ensure that public funds are utilized efficiently and effectively.

Earlier, Oluwatoyin Madein, Accountant-General of the Federation (AGF), presented a summary of the federal government’s revenue generation.

According to Madein, the federal government had an independent revenue of ₦2.7 trillion, an operating surplus from government-owned enterprises at ₦2.3 trillion, and N344 billion as revenue from MDAs.

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The committee also expressed concerns over the low stamp duty revenue between 2020 and 2024, which stood at ₦30.3 million. This, according to the committee, is a clear indication of the need for improved revenue generation and collection.

To get a clearer picture of the federal government’s performance in the 2024 fiscal year, the committee plans to invite the Revenue Mobilization Allocation and Fiscal Commission (RMAFC), Nigerian Extractive Industries Transparency Initiative (NEITI), and the Nigerian National Petroleum Corporation (NNPC).

By holding MDAs accountable for their fiscal performance, the committee aims to ensure that public funds are utilized efficiently and effectively. As Senator Sani Musa aptly put it, “This performance index exercise on the various MDAs is preparatory to the 2025 budget.”

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