The provision of technical support by the Fiscal Responsibility Commission (FRC) to the revenue hearings conducted by the National Assembly Committees on Finance led to an increase of independent revenues amounting to N1.84 trillion to the federal government in 2023.
This was disclosed by the Executive Chairman of the Commission, Victor Muruako Esq, at a one-day policy dialogue on the implementation of the presidential directive of 50% automatic deduction from the internally generated revenue of government-owned enterprises (GOEs) held in Silver Green Luxury Hotel Abuja on Tuesday, March 19, 2024.
Mr. Muruako, who said the FRC has been providing support to the legislature since the 9th National Assembly, expressed the belief that when the Fiscal Responsibility Act (FRA), 2007, is amended to strengthen the Commission, there would be more gains in terms of revenue generation and remittances to government coffers.
While expressing optimism that the current 10th assembly will pass the amendment, he pledged the continuous support of the FRC to efforts by President Bola Tinubu-led administration to shore up the revenue base of the country.
According to him, such support is being demonstrated by the convening of the policy dialogue to gather feedback from government Ministries, Departments, and Agencies on the implementation of the directive on 50% Automatic deduction from the Internally Generated Revenue (IGRs) of Government-Owned Enterprises (GOEs) conveyed through a financial circular dated December 28, 2023, and endorsed by the Honourable Minister for Finance and Coordinating Minister of the Economy.
He stated that the directive is part of government efforts to ensure resources for running government businesses as derived from the annual appropriation as the challenges that have arisen from low revenue are no longer news.
The FRC boss further stated that the presidential directive was meant to “improve revenue generation, fiscal discipline, accountability and transparency in the management of Government financial resources and prevention of waste and inefficiencies,” regretting that some agencies were impairing the government’s efforts by adopting all forms of “creative” accounting standards in the process of disclosing official financial records.
He noted that some agencies were deliberately declaring losses to avoid payment of Operating Surplus while others were preparing more than one audited statement of account for the same year for different purposes, including to avert taxes and to avoid payment of operating surplus.
The dialogue, he said, was an opportunity to appreciate the concerns of the GOEs in respect of the directive and harness feedback for possible future modifications as the Commission has a duty dictated by the FRA to ensure compliance.
He added that the dialogue also provided an opportunity for all parties, including the Commission, Office of the Accountant General of the Federation (OAGF), and the Budget Office of the Federation, to discuss some of the observed challenges and offer solutions that will address issues that will lead to the successful implementation of the policy.
He said: “Irrespective of the fears and possible misgivings of FG Agencies concerning the Directive, the FRC is committed to its duty, as required by the Fiscal Responsibility Act, to ensure compliance of relevant FG Agencies with this directive.
“We are in total alignment with the FG on the need to enhance revenue flows. The Commission is also hand-in-glove with the National Assembly to ensure compliance of MDAs with all revenue directives.
“The FRC is providing technical support to the ongoing revenue hearings running simultaneously at the Senate and House of Representatives Committees on Finance. At each of these important committee hearings, agencies of government are primed to improve their records of due remittances to the FG treasury.
“The Fiscal Responsibility Commission has been playing this support role since the 9th Assembly. The feedback is that we have been doing very well in supporting the parliament in this regard, and the exercise has yielded tremendous improvement in the independent revenue of the Federal Government, reaching N1.84tr in 2023”, he concluded.