The House of Representatives yesterday resumed the process of amending the Fiscal Responsibility Act (FAA), 2007 which among others is seeking a mandatory remittal of one-third of yearly internally generated earnings of Government Ministries Department and Agencies (MDAs) to the Country’s Consolidated Revenue fund of the federation.
According to lawmakers in the last four years, over N3 trillion was not remitted to the Consolidated Revenue Account despite the provisions of the Fiscal Responsibility Act, clearly stating that one-fifth of the surplus of MDAs revenues must be remitted yearly.
The new amendment to the Act which scaled second reading Tuesday specifically targets major government organizations such as the Federal Inland Revenue Service (FIRS), Nigerian National Petroleum Corporation (NNPC) and the Nigerian Communications Commission (NCC) which until now, hardly made public details of their accounts.
Sponsor of the bill, Mr John Enoh said in his lead debate that the amendment was meant to provide for prudent management of the country’s resources, as well as securing greater accountability.
John Enoh was the chairman, House Finance committee since 2007.
Hear him, “Despite government projections of revenues from the MDAs, only less than half of the expected money have been remitted in the past years…The MDAs are skilful such that if they generate N300 billion, their expenditure will be about N300 billion.”
Also, the new amendment will empower the Fiscal Responsibility Commission to sanction MDAs for failure to remit the stated funds as well as under-declaration of the revenue accruing to same.
In 2010, lawmakers came across damning allegations of a public hearing that many government organisations retained and spent at its discretion their generated funds, hereby prompting a motion for the FAA amendment.
The bill which now only awaits a third reading and a senate concurrence, was referred to the yet to be constituted House Committee on Finance for further legislative action.