Business
Reps To Plug MDAs’ Revenue Leakages
The House of Representatives on Tuesday in Abuja promised to work toward plugging all revenue leakages of Ministries, Departments and Agencies in line with the Fiscal Responsibility Act 2007.
Speaker Aminu Tambuwal said this at a meeting of the House Committee on Finance and revenue generating agencies of government.
Tambuwal, who was represented by the Deputy Speaker, Emeka Ihedioha, said that MDAs would be made to account for and fully remit revenues generated to the consolidated account.
He said that there was no discretionary approach to remittances to the Federation Account.
“The method of remitting the revenue and the government account or fund, where it may be remitted may be different.
“There is, however, no room for discretionary approach to revenue remittances,” he said.
He noted that some MDAs had failed to remit adequately revenues generated to the consolidated account of the government.
The speaker said the house was considering a law that would ensure that agencies of government complied with revenue remittances.
“New legislation may be considered to ensure compliance so that the nation would earn what is due to it from the revenue earning departments and agencies of government.
“MDAs will be made to account for and remit to the Consolidated Revenue Fund of the Federation incomes received on behalf of the Federal Government,” he said.
The speaker warned that the practice whereby agencies of government spent their funds at their discretion would no longer be tolerated.
“A situation where more than 50 per cent of actual government revenue is spent outside the national annual budget has put Nigeria in a fiscal crisis.
“It makes our budgeting system inefficient, ineffectual, and opaque. It does not promote accountability, transparency,” he said.
He noted that the constitution and laws on revenue generation had been breached in many ways by government agencies.
He urged relevant committees of the house to propose amendments to laws that are unconstitutional.
The Chairman of the committee, Abdulmumin Jibrin, said the meeting was not to probe or investigate any agency but a fact finding exercise, “to make our budget more transparent.”
He explained that the meeting will enable the committee to track previously uncaptured internally generated revenue of government.
He said that the meeting would also help to monitor agencies compliance with the provision of the Act.
Jibrin noted that there was always a discrepancy in figures between the Budget Office and the agencies.
He added that internal laws of the agencies seemed to empower the agencies to spend their revenues in violation of the FRA 2007.
The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.
The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.
Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.
“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.
He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.
According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.
Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.
He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.
He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.
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