Upper chamber cautions government agencies against snubbing summonses, vows to impose penalties

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Senate

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….Vows to Invoke Constitutional Powers Against Defaulting Agencies
…Gives Ogun-Osun River Basin Development Authority Two Weeks to Reconcile Financial Records

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By Henry Umoru

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ABUJA — The Senate has urged the Federal Government to intervene and ensure that Ministries, Departments and Agencies (MDAs) honour invitations to appear before legislative committees to account for the remittance of internally generated revenue (IGR) and operating surplus into the Consolidated Revenue Fund (CRF).

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Speaking on Wednesday in Abuja during an interactive session with government agencies on remittances of IGR and operating surplus by MDAs into the CRF between 2023 and 2025, Chairman of the Senate Committee on Finance, Senator Sani Musa (APC, Niger East), warned that the committee would invoke its constitutional powers against agencies that fail to comply with invitations.

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Musa expressed concern over the refusal of some invited agencies to appear before the committee, stressing that heads of government institutions must personally honour invitations to explain their organisations’ financial activities and statutory obligations.

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He said the President of the Senate would make a statement on the refusal of some agencies to appear before the committee.

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According to him, the engagement was part of the Senate’s constitutional oversight responsibility to ensure accountability in the management of public resources.

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The lawmaker noted that MDAs and government-owned enterprises that generate revenue on behalf of the Federal Government must strictly comply with statutory remittance requirements.

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“Any agency collecting revenue and spending it without appropriation is acting illegally. Such practices will not be tolerated,” he said.

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Meanwhile, the Senate Committee on Finance has given the Ogun-Osun River Basin Development Authority (OORBDA) a two-week ultimatum to reconcile its financial records with relevant government agencies or risk sanctions, including suspension of budget releases.

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The directive was issued when the Acting Managing Director of the authority, Mr Ayo Oyano, appeared before the committee. Oyano represented the Managing Director, who was said to be on annual leave.

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Senator Musa directed the acting managing director to provide explanations on the agency’s financial performance, revenue generation and statutory remittances during the period under review.

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Oyano disclosed that the authority generated N72.755 million in 2023 and remitted N18.188 million, representing 25 per cent of the revenue generated.

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He added that receipts for all remittances made between 2023 and 2025 were attached to documents submitted to the committee.

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However, the Fiscal Responsibility Commission (FRC) faulted the submission, stating that OORBDA, being a fully funded government agency, was required by law to remit 100 per cent of its internally generated revenue into the Consolidated Revenue Fund.

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The commission further disclosed that the authority last submitted its audited financial statements in 2022 and had failed to file audited accounts for 2023, 2024 and 2025.

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It also revealed that the agency had an outstanding liability of N71.5 million as of 2022, with no evidence of corresponding remittances.

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Responding, Senator Musa reminded the agency that its personnel, overhead and capital expenditures were funded through annual appropriations approved by the National Assembly.

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“You are not expected to retain any revenue you generate because your budget has already been appropriated by the National Assembly,” he said.

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Defending the authority’s position, Oyano explained that part of the revenue generated was used to maintain tractors and other equipment deployed for agricultural services.

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He said the agency was not primarily established as a revenue-generating organisation and that income from its services was used to maintain operational assets that were not adequately covered by budgetary allocations.

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The committee, however, rejected the explanation, insisting that all revenues generated by fully funded government agencies must be paid into the Treasury Single Account (TSA) and transferred to the Consolidated Revenue Fund.

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The Fiscal Responsibility Commission supported the committee’s position, explaining that agencies could only retain internally generated revenue under exceptional circumstances where approved operational costs had not been funded by government.

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The commission’s representative said such retention must receive appropriate government approval and could not be authorised unilaterally by an agency or its governing board.

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“No agency can spend internally generated revenue outside an approved budget without lawful authorisation,” the representative said.

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The committee observed that OORBDA’s financial records were incomplete due to the failure to submit audited accounts for three consecutive years, making it difficult to determine its financial position.

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The FRC also informed lawmakers that it could not ascertain the agency’s liabilities for 2023, 2024 and 2025 due to the absence of audited financial statements.

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At the end of the session, the committee directed the Ogun-Osun River Basin Development Authority to reconcile its accounts with the Office of the Accountant-General of the Federation and the Fiscal Responsibility Commission within 14 days.

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“From the look of things, your books are not in order. We are giving you two weeks to reconcile your accounts,” Musa said.

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He warned that failure to comply with the directive could attract legislative sanctions, including suspension of the agency’s budgetary releases.

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The committee concluded that all outstanding liabilities must be reconciled and properly accounted for before further consideration of the authority’s financial records.

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The investigative hearing was adjourned to the following day for continuation.

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