Nigerian govt ministries can't account for N324 billion – Audit Report

Premium Times

Federal ministries, departments and agencies failed to account for N323.5 billion in 2019, with many offices violating the government’s financial rules on payments, remittances and tax, the government’s audit report for 2019 has said.

The dubious spending included unapproved allowances, unretired advances, irregular award of contract, payment for services not executed and payments without voucher.

Most of the violations were observed across 27 MDAs with at least four of them recording cross-cutting issues from non-compliance and internal control weaknesses issues, the audit report, the latest from the Office of the Auditor-General of the Federation, said.

The largest chunk of the expenditure was N132.5 billion used in paying unapproved allowances to staff in 20 MDAs, the report said. The Nigerian Security Printing and Minting Plc spent the highest amount of over N97 billion, while the National Commission for Colleges of Education, Abuja, spent N2 million, the least.

According to the Office of the Auditor-General of the Federation, the authors of the report, the spending violated Paragraph 415 of the Financial Regulations that states, “The Federal Government requires all officers responsible for expenditure to exercise due economy. Money must not be spent merely because it has been voted.”

The second biggest waste noted by the audit report was N127.1 billion, being internally-generated revenues and other funds not remitted to the government by 15 MDAs.

Under government laws and regulations, all federal agencies that are fully funded from the treasury are mandated to remit 100 per cent of their internally generated revenue to the government’s central account. A circular in 2011 requires all federal agencies to limit their utilization of internally generated revenue to not more than 75 per cent of the gross revenue while the balance of not less than 25 per cent should be remitted to the government purse.

Of the N127.1 billion unremitted money, Nigeria Customs Service had the highest amount of N125 billion, while Anambra-lmo River Basin Development Authority, Owerri had the least amount of N5 million.

Also, nine MDAs spent N49.5 billion on unbudgeted items, with the Federal Ministry of Agriculture and Rural Development having the highest amount of N48 billion, while the Pharmacists Council of Nigeria, Abuja, recorded the least amount: N1 million.