On Wednesday, the Fiscal Responsibility Commission (FRC) revealed that several Ministries, Departments, and Agencies (MDAs) have yet to deposit a total of N1.2 trillion into the Federal Government’s coffers.
Victor Muruako, the Executive Chairman of the Fiscal Responsibility Commission, announced this at a press conference in Abuja.
According to him, the Act required government-owned firms and businesses to contribute 80% of their operating surpluses to the Federal Government’s Consolidated Revenue Fund.
He explained that the government needed to create funds in order to meet revenue obligations in its annual budget execution, thus the operational surplus was paid into the CRF.
Muruako said that it was also critical for firms to generate returns on the government’s investment, especially since businesses do not pay income taxes or dividends.
He explained that the Federal Government’s share of operational surplus from MDAs had continued to rise over time as a result of the Fiscal Responsibility Commission’s consistent and ongoing engagement with them, particularly with the support of the National Assembly.
According to the Executive Chairman’s records, the total amount paid as operational excess since the FRC’s inception has exceeded N2.15 trillion, which, by the way, would not have been possible without the Act and the commission, because there would have been no law, rule, regulation, or institution demanding such returns.
“Sadly, many MDAs still persist in defaulting and practically keeping money away from the federal government’s reach for funding its budgets. Our records indicate that over N1.2tn is still in the hands of defaulting MDAs,” he said.
Muruako stated that these figures were confirmed from its analysis of the annual audited financial reports submitted to the commission by the concerned agencies.
“Much more is yet out there in the hands of MDAs that either have failed to dutifully audit their accounts or that have done so but choose not to forward copies of their audited financial reports to the commission as required by law,” he added.