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Adeosun asks heads of MDAs to reduce costs, generate more revenues

by Onyinye Nwachukwu, Abuja

September 12, 2017 | 8:13 pm
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The Minister of Finance, Kemi Adeosun, on Tuesday asked all heads of Ministries, Departments and Agencies (MDAs) to minimise increasing costs and raise revenue generation amid tight cash balances of government.

She said this in Abuja while opening a workshop on “Compliance with the Fiscal Responsibility Act’’ organised for senior officers of the MDAs.

In an address titled “The Business of Government” Adeosun said they should recognise the current financial priorities of the nation and cut their costs, eliminate wastage and plug revenue leakages.

She said many agencies were engaged in quasi commercial activities on behalf of the government and were expected to manage those
organisations in a manner that maximised operating surplus.

Citing other countries, she said government functions such as visa processing, passport issuance, company registration and regulation
were major revenue earners.

“However, in Nigeria many agencies are operating in such a manner that returns minimal funds to government,” she stated, noting that this was caused mainly by wastage, illegal recruitments, bloated expenses, loans to staff and employment of expensive consultants.
She commended the Joint Admissions and Matriculations Board (JAMB) and Nigerian Maritime Administration and Safety Agency (NIMASA), because they had both significantly improved on their remittances.

She encouraged other agencies to urgently review their costs and revenues with a view to increasing remittances to government coffers, adding that the Ministry of Finance planned to publish the performance of agencies.

Adeosun, however, warned agency heads that under the present administration every naira counts, adding that whether funds were generated from oil or from fees, the same standards of accountability for public money would apply.

The minister announced to the participants that compliance checks would be undertaken to ensure that agencies adhered to the new requirements.

Accountant General of the Federation, Mr Ahmed Idris, said revenue generation should be improved on to meet the targets set for the year.

“We only realised about 35 per cent of the N1.3 trillion revenue estimated for 2016.
“For 2017 it has been lowered to about N807 billion and we are now in the third quarter of the year but what we have been able to realise to
date is about N120 billion.

“We are now in September which means we have not even gone half way, we are just hovering around 25 per cent of the estimated revenue for this year as far as Internally Generated Revenue (IGR) for this year is concerned.’’
He said not meeting the expected revenue target has taken its toll on disbursements to the MDAs.

“We must go back and see what we can use to enhance our revenue generation otherwise the budget would not be funded and that is why we have gaps in terms of releases.
“Agencies wonder why certain components of the releases are not made 100 per cent, but this is partly the reason.

“The estimated revenue is not really achieved as expected and therefore the releases could not be made as expected’’
He, however, urged the heads of agencies to be more creative in revenue generation efforts so that they could meet the individual targets of agencies and collectively meet the estimated revenue to
fund the budget.

 

Onyinye Nwachukwu, Abuja


by Onyinye Nwachukwu, Abuja

September 12, 2017 | 8:13 pm
12893  |   93   |   0  |   Start Conversation

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