Business
Minister Challenges Accountants On Wastages, Leakages In Govt’s Revenue
The Coordinating Minister
for the Economy and Minister of Finance, Mrs Ngozi Okonjo-Iweala has challenged accountants to address leakages in government revenue and wastages in expenditure pattern.
Okonjo-Iweala, represented by her Permanent Secretary, Mrs Nwobia Daniel, gave the charge at the opening of a two-day retreat in Kaduna.
The retreat was for Directors of Finance and Accounts and Heads of Internal Audit in Federal Ministries, Departments and Agencies (MDAs).
The minister said the retreat was to remind them on the importance of their roles in the government’s transformation agenda.
“The Federal Government therefore, expects that the retreat will discuss issues that will tackle the challenges of leakages in government revenue and wastages in expenditure patterns in MDAs.
According to her, the participants are also expected to come up with strategies to ensure prudence in management of limited financial resources available for government’s use.
“At the end of the retreat, deliberate policies aimed at minimising corruption and strengthening the economy through efficient treasury management should be suggested to fine-tune the transformation agenda, “she urged.
She noted that the theme, “Transforming of Treasury Management in Nigeria,” was apt and timely, as it would address the increasing responsibilities and dwindling revenue of the government.
Okonjo-Iweala said the challenges confronting successful implementation of the Public Financial Management (PFM) includes: corruption, high cost of governance and inadequate legislation.
Others are non-compliance with due process mechanism, inadequate ownership of the reforms by public servants, poor motivation and emerging public performance reporting system.
She emphasised that the Office of the Accountant-General of the Federation (OAGF) was central and strategic to the PFM reform.
The reforms cover “Government Integrated Financial Management Information System (GIFMIS), Treasury Single Account (TSA), Integrated Payroll and Personal Information System (IPPIS).
“Development of National Chart of Accounts (COA), Modernisation of the Internal Audit Functions, Upgrading of Federal Treasury Academy and Adoption of International Public Sector Accounting Standards (IPSAs),” she said.
The minister said the reforms were meant to ensure efficient public expenditure management, curb corruption, improve government revenue, enhance transparency and accountability.
She, therefore, advised the office of the Accountant-General to seek effective inter agency interaction to bring all government revenue and expenditure under its safety net.
“An independent revenue collection averaging 50-55 per cent of budgeted figures is no longer acceptable.”
She also tasked the participants to brainstorm and recommend strategies that would enhance revenue collection, as well as assist government take right decisions for effective transformation of the treasury system.
On his part, the Accountant-General of the Federation, Mr Jonah Otunla said 36 MDAs out of the 394 had been trained on Government Integrated Financial Management Information System (GIFMIS).
He said that the remaining 358 would be trained in batches.
On the International Public Sector Accounting Standards (IPSAS), Otunla said that sensitisation and training were ongoing in the MDAs on the new format of reporting financial transactions of government.
He said the IPSAs cash basis would commence from 2014 financial year, while the accrual basis would come into operation by 2016.
He charged the participants to make recommendations on issues bodering on treasury management such as improving revenue base of government and addressing gap among treasury accountants.
Otunla also challenged them to suggest institutional restructuring of the nation’s treasury for improved performance, ways to address challenges of cash planning and expenditure discipline and forum for efficient public financial management.
“Payment of tuition fees for undergraduate/postgraduate studies shall be subject to a maximum limit of $25,000.00 per semester,” the Manual states.
The expansion of international card limits also reflects growing confidence among lenders that foreign exchange liquidity has improved enough to support retail dollar transactions.
Speaking recently at the BusinessDay 14th Annual CEO Forum in Lagos, CBN Olayemi Cardoso, governor of the CBN said buying and selling activities now increasingly determine outcomes in the foreign exchange market, unlike in the past when market participants relied heavily on routine Central Bank interventions.
According to Cardoso, Nigeria’s net foreign exchange reserves have risen from just over $3 billion at the start of the reform programme to more than $40 billion, while gross reserves have climbed to about $52 billion, providing stronger confidence for investors and enabling the Central Bank to reserve interventions for periods of market stress rather than day-to-day liquidity management.
The restoration and expansion of international naira card spending limits are increasingly being seen as one of the clearest signs that the benefits of the CBN’s foreign exchange reforms are beginning to reach households, students and businesses making legitimate cross-border payments.
The Secretary-General and Chief Executive Officer, WEC, Dr Angela Wilkinson, disclosed this in a statement, last Thursday.
“Nigeria’s participation comes at a pivotal time as the country seeks to expand energy access, strengthen energy security, accelerate gas development and mobilise the capital required for industrialisation and sustainable economic growth.
“WEC Nigeria will convene leaders from across the energy ecosystem, apply the WEC’s globally recognised Energy Trilemma framework to Nigeria’s unique context, and promote evidence-based dialogue, practical collaboration and informed policymaking.
“It will also ensure that Nigerian and broader African perspectives contribute meaningfully to global energy conversations,” she said.
Wilkinson expressed confidence that Nigeria would play a significant leadership role at the World Energy Congress scheduled for Riyadh in April 2027 and beyond.
The statement also quoted the Chairman of WEC Nigeria, Isa, as describing the country’s participation as an opportunity to deepen national and African leadership within the global energy community through practical solutions tailored to regional development priorities.
He said the platform would promote collaboration across sectors and attract sustainable investments into Nigeria’s energy sector.
The Chief Executive Officer of WEC Nigeria, Wunti, was quoted in the statement as saying that the council would connect leadership, evidence and investment to build a secure, affordable and sustainable energy system.
“This system will be capable of driving economic growth and shared prosperity.”
According to him, the platform will also connect Nigerian institutions and businesses with international knowledge, technology, partnerships and investment opportunities through the World Energy Council’s global network.
Recall that WEC, founded in 1923, is the world’s oldest independent and impartial community of energy leaders and practitioners, advancing informed, collaborative and practical action across the global energy system.