TO ensure that the Federal Government plugs leakages in the system, it is set to expand the list of scheduled corporations listed in Fiscal Responsibility Act beyond the current 30.
Some of the corporations include NNPC, CBN, NPA, NDIC, BPE, NSITF, CAC, SEC, NMA, NCAA, Sugar Council, FAAN, Nigerdock, NAC, NAFDAC, FIRS.
Acting Chairman of Fiscal Responsibility Commission (FRC), Victor Muruako who made the disclosure at a sensitization programme on Continuous Audit as tool for transparency and accountability in government financial business in Abuja on Tuesday also disclosed government could have better utilized the N54.2 trillion that accrued into the federation account between 2009 and 2015.
Muruako also called for further amendment of the Constitution to incorporate the Excess Crude Account (ECA) as part of section 162 dealing with the operation of federation account.
“Presently there are 30 corporations and agencies listed in the schedule to the FRA. The Honorable Minister of Finance is already in the process of exercising her powers under the schedule to expand the list under the schedule to the Act.
“The list of schedule corporations and government owned businesses and related agencies as listed in the Fiscal Responsibility Act, 2007 should be widened to include more agencies in the payment of operating surplus.”
He gave data from Budget Office of the Federation that showed that total revenue flowing into the federation account grew from N4,110.24 billion in 2009 to N10,059.59 billion in 2012, but declined to N9,009.38 billion in 2013.
In 2014, the total revenue however showed a slight increase of 3.24 per cent over 2013 to settle at N9,031.51 billion.
“The total revenue of N6,107.28 billion recorded in 2015 represents a drop of 34.38% which is traceable to the combined effects of oil price slump and revenue leakages.
“While nothing could be done to the volatility of oil price, blocking all revenue leakages is within the purview of the government. Table 1 shows the summary of actual federally collected revenue for 2009 – 2015.”
In all, the FRC boss disclosed that federal government’s revenue made up of statutory allocation and internally generated revenue totaled N15,892.84 billion from 2009 to 2015.
“This comprises N9,738.24 billion (61.24%) oil revenue, N4,647.51 billion (29.24%) non-oil revenue and N1,507.09 billion (9.48%) independent revenue.”
According to him, such analyses of figures “are required to gain an understanding of the revenue system and to appreciate the magnitude of the havoc revenue leakages portend for the country.
“The attempts at pugging revenue leakages should be holistic and encompass finding effective solutions to the Niger Delta militancy, stealing and pipelines vandalism, social unrest like Boko Haram insurgency, recurrent expenditure without limit and control, virtually free access to loans and lack of transparency and accountability.”
And in order to strengthen revenue inflow and block all revenue leakages, Muruako enumerated a number of measures that government should undertake including: a revenue strategy or long range plan, its implementation procedure and programme and evaluation and control system to ensure the achievement of the objectives in revenue generation; pay serious attention to its revenue generation from oil sources.
Government should also re-engineer the Navy, Marine Police and Nigerian Maritime Administration and Safety Agency (NIMASA) to synergize and effectively put a stop to oil and gas bunkering, theft and vandalism.
Also speaking in a goodwill message, Accountant General of the Federation Mr. Ahmed Idris told reporters at the venue that government as a result of some of the reforms embarked upon the current administration, government saves N4 billion monthly on bank loans.
“Much as Nigeria is presently undergoing robust changes in public financial management, the quest for higher performance on transparency and accountability could not be overemphasised.
“It is clearly understood that reforms such as the adoption of IPSAS Accrual basis, IPPIS programme, TSA implementation and Internal Audit Modernisation could only survive the test of time if our financial management system is predicated on integrity, transparency and accountability.”