The Senate Committee of Finance from today will commence a full blown investigation of all revenue generating Ministries, Departments and Agencies(MDAs) to discover their compliance with relevant laws on internally generated revenue in a bid to ensure more revenue accrue to the Consolidated Revenue Fund as well as ensure future compliance with the laws.
Senator Solomon Adeola (APC, Lagos West) who disclosed this during the 2021 Budget Defense of Federal Inland Revenue Service(FIRS) explained that the investigation was to have started today (yesterday) but have to be deferred following the demise of a House of Representatives member and the suspension of legislative activities by the Senate.
The chairman stated that the era of reliance on revenues from crude oil sale and a few other sources to finance government recurrent and capital expenditures is no longer sustainable stressing that Government have to look into other revenue sources for its activities.
“There is no doubt that many MDAs are in default in their remittances of revenue generated during their operation as stipulated by the Fiscal Responsibility Act 2007 as well as the 1999 Constitution of Nigeria. In view of the dire straits that Nigeria is in now, this cannot be allowed to continue and the investigation is to get to the bottom of the non-compliance by MDAs” he stated.
The chairman of the Senate Committee on Finance further stated that the investigation will also include the remittances or otherwise of the 1% Stamp Duties accruing from all awarded contracts by all MDAs which were not remitted to FIRS stressing that this includes all government agencies beyond the over 460 revenue generating MDAs.
The investigation is to cover the period between 2014 till date and submissions already made by MDAs are to be corroborated by the Office of the Accountant General of the Federation, AGF as well as the records with the Fiscal Responsibility Commission who are part of the technical team of the senate investigation.