The Fiscal Responsibility Commission (FRC) has accused various Federal Government Ministries, Departments, and Agencies (MDAs) of unlawfully withholding a total of N1.2 trillion.
The commission says this figure represents unremitted operating surpluses that should have been paid into the Consolidated Revenue Fund (CRF), as required by the Fiscal Responsibility Act (FRA).
This revelation was made by the FRC Chairman, Mr. Victor Muruako, during an interview with journalists on Wednesday, May 19, 2021.
Audit Reports Reveal Non-Compliance by MDAs
According to Mr. Muruako, the N1.2 trillion figure is based on audited annual accounts of the defaulting MDAs.
Under the FRA, MDAs are required to remit 80% of their operating surpluses to the CRF.
However, many continue to default on this obligation, withholding funds critical to national budgeting and development efforts.
“Many MDAs still persist in defaulting and practically keeping money away from the Federal Government’s reach,” Muruako stated.
“Much more is yet out there in the hands of MDAs that either have failed to dutifully audit their accounts or have done so but chose not to forward copies of their audited financial reports to the Commission as required by law.”
Commission Decries Impact on National Budgeting
Muruako expressed disappointment over the continued lack of compliance, describing the situation as damaging to the government’s fiscal health.
He emphasized that despite extensive efforts by the Commission to enforce fiscal discipline, many agencies still disregard the law.
He described the withheld funds as “not cheering,” given the scale of work being done to instill accountability within public institutions.
N2.15 Trillion Recovered Since Establishment
Despite the challenges, the FRC Chairman noted that since the Commission’s establishment, over N2.15 trillion has been recovered from MDAs as remitted operating surpluses.
This shows that with proper compliance, the federal government has a significant revenue stream outside loans and oil income.
He urged MDAs to adhere strictly to the provisions of the Fiscal Responsibility Act and prioritize timely submission of audited financial reports.
