The Senate through its Finance Committee on Monday, expressed concerns over discrepancies in Nigeria?s revenue generation and expenditure tracking.

They condemned the centralisation of the payments in the office of the Accountant General of the Federation saying the development was causing delays in capital budget implementations.

The red chamber also called for improved synergy between the Office of the Accountant General of the Federation and the National Assembly to work out modalities that would ensure better transparency.

These were part of tension-soaked investigative hearing session focused on the remittance of internally generated revenue, fiscal accountability, and the overall state of the country?s financial management system.

The Chairman Senate Committee on Finance, Senator Sani Musa, in his opening remarks, emphasised the importance of addressing financial inconsistencies across government agencies.

He stated that the Issues of inconsistencies undermine transparency and accountability in governance.

He expressed concerns over the inability of the parliament to readily access accurate data on the funds available to the federation, a gap he said, impairs effective oversight and policymaking.

Musa, who is representing Niger East said, ?We should be able to determine, at any point, the exact state of revenues collected, how they?ve been disposed of, and what has been allocated to various accounts. Unfortunately, that is not the case today.

?Key areas of concern include the discrepancies in reports from the Nigerian National Petroleum Company (NNPC) and the federation account, the dividends received from LNG operations, and other significant variances.?

The Committee also underscored the need for clarity on loans, grants, and other financial inflows managed by the government.

The Accountant General of the Federation, Oluwatoyin Madein, in her response, presented a summary of internally generated revenue for the federal government up to September 2024.

She put the Independent revenue at N2.7 trillion; Operating surplus from Government-owned Enterprises (GOEs) at N2.3 trillion; and Ministries, Departments, and Agencies? (MDAs) internally generated revenue (IGR) at N344 billion.

The Committee, however, noted that the report submitted focused solely on the Accountant General?s office, with significant omissions regarding the federal government?s overall financial activities.

In light of the gaps identified, the Committee resolved to invite other relevant agencies, including the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC); the Nigerian Extractive Industries Transparency Initiative (NEITI), and the NNPCL, for a joint session to ensure a comprehensive review of the discrepancies.

?This is not about hearing from one side and another separately; we need all stakeholders present at the same time to provide clarity and consistency in their reports,? Musa concluded.

The Senate hearing reflects growing efforts to strengthen Nigeria?s financial oversight and accountability mechanisms, with a shared commitment to enhancing transparency and building a robust fiscal policy framework.

At the investigative hearing, lawmakers expressed frustration over the persistent delays in the release and utilisation of capital budgets.

They cited inefficiencies within the centralised payment system managed by the Office of the Accountant General of the Federation.

The Committee criticised the centralised payment policy, which requires over 700 MDAs to process payments through a single office.

Senators argued that this policy has led to inefficiencies, delayed project completions, and diminished public trust, especially in constituencies expecting the execution of critical infrastructure projects.

The key Issues raised by the Senators included: Underutilisation of capital budgets, centralised payment challenges, allegations of corruption and low revenue from stamp duties.

The Accountant General reported an N8 billion capital allocation for 2024, yet only N2.9 billion (25%) had been released for project execution.

Lawmakers noted that the unutilised funds obstruct other agencies from accessing necessary resources, further exacerbating delays across the board.

The policy of centralising all payments in the Accountant General?s office was heavily criticised for creating bureaucratic bottlenecks.

Lawmakers pointed out that this system often results in MDAs waiting months for payment after projects are executed, causing delays in government operations and public projects.

Concerns were also raised about contractors being required to pay under-the-table fees, reportedly five percent of the contract value, to expedite their payments.

This practice, if verified, according to them,

Represents a major accountability issue, undermining the efficiency of the system.

The Accountant General revealed that stamp duty revenues from 2020 to 2024 were disappointingly low, totaling N30.3 million compared to the N301.49 million internally generated revenue (IGR).

Lawmakers linked this to poor budget performance, as taxes were only collected when payments are made.

The Accountant General in his defence explained that the centralised payment system was introduced to curb inefficiencies and prevent unutilised funds from being rolled over annually.

According to her, MDAs were expected to execute projects, upload contractor details, and request payments directly from the system.

However, she said some MDAs failed to comply with this policy, leading to delays in payment.

Senators argued that the centralised system has stifled progress instead of enhancing efficiency.

They insisted that delays in payments, even for completed projects, were unacceptable and reflect systemic inefficiencies.

The insisted that MDAs should be given greater autonomy to manage their budgets while maintaining oversight to prevent misuse.

Senator Amos Yohanna from Adamawa North said: ?Federal government revenue is suffering because budget performance is poor.

?Taxes remain low because payments are not made. We need a system that works.?

In a heated session at the National Assembly, the Accountant General of the Federation faced tough questions from lawmakers over delayed fund releases and significant budget increases.

Members also indicated plans to summon other agencies, including the Nigerian National Petroleum Corporation (NNPC) and the Nigerian Extractive Industries Transparency Initiative (NEITI), to address discrepancies in their submissions.

As the year winds down, lawmakers stressed the importance of expediting fund releases and resolving inefficiencies in financial systems to avoid budget rollovers. (AriseNews TV)

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