The non-remittance of revenue by most ministries, departments and agencies of government to the Consolidated Revenue Funds of the Federal Government is currently N1.2tn, the Fiscal Responsibility Commission said on Monday.
The FRC is responsible for mobilising funds from government owned organisations through the payment of operating surplus to finance government’s budget.
The Acting Chairman of FRC, Victor Muruako, said the unremitted N1.2tn could be used to fund part of this year’s budget.
He called for the strict enforcement of the Fiscal Responsibility Act 2007, saying this could help to stop borrowings by government.
Muruako spoke at the opening session of a three-day management retreat for employees of the commission in Abuja.
He said, “Today, our records still show that most of the 122 agencies of government are in default of more than N1.2tn which can fund a substantial portion of the Federal Government of Nigeria budget deficit if remitted in line with FRA 2007.
“These sums are calculated from already submitted end of year audited accounts of the defaulting agencies, which means the monies can be traced and recovered.”
He said the FRC had insisted that if the government could implement the commission’s recommendations of reigning in more government owned corporations in the Schedule of the FRA 2007, there might be no need for government to borrow to fund the budget.
Muruako said there was need to add more agencies to the net of payment of operating surplus.
He said almost all government organisations generate funds one way or the other, but they equally spend on items that were unnecessary, while government continues to seek for loans to fund its budget.
The FRC boss said, “Notably, from the initial 31 corporations in the Schedule of the FRA 2007, another 92 has been added by the Ministry of Finance as recommended by the commission.
“This action has made it possible for the commission to have caused these GOEs (government owned establishments) to pay in over N1.7tn to the Consolidated Revenue Funds.”
He added, “This was from payment of operating surplus by government owned organisations with far less than N5.8bn government investment in the commission comprising overhead, capital expenditure and personnel for the past 11 years of the commission’s existence.”
He said these funds were hitherto spent by these agencies without tracing through unorthodox accounting systems and all forms of financial manipulations.
On the retreat, Muruako said it would focus on the best ways to utilise available resources so that the economy would not be allowed to fall to the predictions of international financial institutions.