Over N40 trillion has so far been expended by the federal government on the 50 Government Owned Enterprises (GOEs), that are not yielding positive results, the Budget Office of the Federation has declared.
Director-General, Budget Office of the Federation (BOF), Ben Akabueze, who disclosed this at a town hall presentation to Chief Executive Officers (CEOs) of GOEs in Abuja yesterday, lamented that despite huge government’s investment in these agencies over the years, what is usually remitted to the treasury in terms of dividends or surplus at the end of each operating year, is mostly insignificant.
He said: “The record shows that few of the GOEs declare surpluses. In effect, the Nigerian tax payers/general public have not benefitted much from these investments/agencies.
“Out of the total projected sum of N807.57 billion, independent revenues in 2017, only N216.66 billion, representing 26.8 per cent performance was remitted by GOEs and revenue generating MDAs,” he added.
According to Akabueze, the federal government recorded a shortfall in FGN’s Independent Revenue by N545.29 billion as it projected N847.95 billion as FGN’s Independent Revenue and only N302.66 billion was realised.
According to data from the presentation, GOEs that failed to remit operating surplus as at 31 August, 2018 are: National Sports Commission (N78.39billion), AMCON (N81.81billion), NDLEA (N85.658bllion), NIPC (983.89billion), NEXIM (N1.23 trillion) and federal government’s landed properties (N2 trillion).
Others include: JAMB (N2.12trillion), National Sugar Development Commission (N3.72trillion), Properties (N4trillion), National Broadcasting Commission (5.66trillion), and NDIC (21.754trillion).
However, he said, the continuous underperformance of the revenue agencies has made it difficult to achieve enhanced domestic revenue mobilization from operating surpluses.
It will be recalled that the Acting Chairman, Fiscal Responsibility Commission (FRC), Mr. Victor Muruako, at a stakeholders’ meeting with the managements of some revenue generating agencies on Monday in Abuja, disclosed that the Nigerian Tourism Development Commission (NTDC), Federal Airport Authority of Nigeria (FAAN), National Electricity Regulatory Commission (NERC) and National Oil Spill Detection and Response Agency (NOSDRA), have not been remitting their operating surpluses into the Consolidated Revenue Fund (CRF).
Mr. Muruako noted that in the past three years, the four agencies have not been complying with the provisions of Section 21, 22 and 23 of the Fiscal Responsibility Act (FRA), 2007, by submitting their annual audited accounts, receipts of their remittances, budgets and Medium Term Expenditure Framework (MTEF).
But Mr. Akabueze insisted that except the anomaly is urgently addressed, the country might likely face serious medium term fiscal challenges.
While saying that the country did not have a debt sustainability challenge, he noted that “we have a serious revenue problem which can degenerate into a debt sustainability problem.”
The Director-General said the situation prompted the government to come up with the Revenue Performance Management Framework for CEOs of GOEs, just as he said that the gathering will go a long way to address the aforementioned issues.
He said a new framework will give fillip to revenue generation by GOEs.
“From the foregoing, the imperative for improved revenue performance is evident. The objective of this framework is to improve revenue generation and associated remittances to government coffers. Remittances and collections by government agencies should contribute more significantly to FGN’s revenue,” he explained.
To achieve the said objective, Mr. Akabueze said, legislative action may be required in the medium term to amend relevant sections of the Acts establishing some of the GOEs to reflect economic realities and policy thrust of government.
“The reforms are expected to include: Performance monitoring; eexpenditure controls; budgeting and financial reporting; financial oversight, and aamendments of establishment Acts of Some GOEs
“Some establishing Acts, for instance, empower the Boards of agencies to serve as final approving authorities over their spending plans, while some others appear to have been precluded from the requirement to remit operational surpluses,” he added.
