Recently, the Senate Public Accounts Committee (SPAC) threatened to issue warrants for the arrest of some heads of government agencies, including the chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, and the Group Chief Executive Officer (GCEO) of the Nigerian National Petroleum Company (NNPC) Limited, Mele Kyari, among others.

They were accused of failing to respond to audit queries issued to them by the Auditor General for the Federation (AuGF).

Of course, this is not the first time the Auditor General has issued queries to heads of agencies, and they have been ignored; it has actually become an annual ritual.

According to the 1999 Constitution (as amended), the office of the Auditor General for the Federation (OAuGF) is charged with the responsibility of auditing all the accounts of the federal government, including ministries, departments, and agencies (MDAs). The

OAuGF’s role is to ensure that public funds are used appropriately and for their intended purposes.

The Constitution also states that the Office of the Auditor General for the Federation is a separate and independent entity whose existence, powers, duties, and responsibilities are outlined in the Constitution.

Unfortunately, the law did not empower the office to bite, though it can bark.

In fact, Nigerians are beginning to ask questions about the real relevance of the office of the Auditor General if all it can do is expose fraud in MDAs and nothing more.

The outburst by the Chairman of the Senate Public Accounts Committee, Senator Ahmed Wadada, who threatened the arrest of the heads of the agencies, was an expression of frustration resulting from the powerlessness of both the office of the Auditor General and the Public Accounts Committee of the National Assembly to sanction or prosecute agency heads alleged to have been involved in irregularities in the management of government funds in MDAs. These heads of agencies are very much aware of this powerlessness, and hence, they simply ignore the queries, and nothing happens.

For instance, according to Ahmed Wadada, from the inception of this committee to date, more than eight invitations have been extended to the chairman of FIRS, who has intentionally refused to appear before the committee and also hasn’t been responding to communications from this committee.

READ ALSO: Audit Report: CSO urges NASS to probe N3.5tr unaccounted for by MDAs

It is the same story with the Nigerian Communications Satellite Limited, which the committee said it has invited over nine times to answer to the queries of the Auditor General for the Federation, but not a single appearance. Even the Nigerian Police Force has never appeared before this committee despite all communications, according to the SPAC chairman.

The OAuGF uncovered financial infractions worth over N3.403 trillion in government MDAs in its audit report for the financial year ending 31 December 2021 in 28 audits.

About N2.902 trillion was from the failure of eight government agencies to recover outstanding government revenue. Nigerian Bulk Electricity Trading Plc did not recover N2.896 trillion of the amount.

These have been the kinds of discoveries over the years, yet no one has ever been sanctioned based on these audit reports, which has, of course, emboldened the perpetrators, knowing that nothing will happen, and actually, nothing happens.

Nigeria is ranked as one of the most corrupt countries in the world, with a Corruption Perception Index (CPI) score of 25 in 2024. It was ranked 134th out of 180 countries, indicating a high level of perceived corruption.

It is perceived that corruption is endemic in Nigeria, permeating all government agencies.

The office of the Auditor General has been doing its job of exposing corruption in government agencies, but it goes beyond just letting people know that these infractions exist. What actions have been taken to ensure they do not repeat?

There have been calls for a new Audit Act to replace the existing one, which was enacted in 1956. This current Act, according to stakeholders, is clearly outdated and no longer effective in modern-day Nigeria, having not been reviewed or updated in over 60 years.

They say the Act has failed to keep pace with modern auditing standards and practices and has contributed to the prevalence of corruption and financial mismanagement in Nigeria.

They insist that Nigeria needs a new audit legislation to address the weaknesses in the current system and empower the Auditor General to prosecute and sanction agency heads found guilty of fund mismanagement, as is done in other countries.

The new Audit Act is expected to provide for stronger penalties for audit failures and misconduct, as well as greater transparency and accountability in the audit process.

Although there is an audit bill that has been before the National Assembly for quite some time, it appears the fear of the likely impact of the new law on public officials has ensured that the law remains on the shelves of the National Assembly. In fact, it dates back to the President Obasanjo administration when it was actually passed by the National Assembly, but the former President failed to sign it into law.

The new Audit Service Bill at the current National Assembly has been passed by the House of Representatives, but the Senate has yet to concur.

The Executive Director of Paradigm Leadership Support Initiative (PLSI), Mr. Olusegun Elemo, said in an interview that the enactment of the new Audit Service Act was long overdue.

READ ALSO: Senate approves 2025 budget for Auditor-General’s office

He expressed joy that the House of Representatives has already passed it and called on the Senate to concur so that it can be sent to the President to sign.

He said the new law will provide the Auditor General with significant powers to prosecute and sanction anyone found guilty of financial irregularities.

In his own contribution, a Professor of Accounting and Financial Development at Lead City University, Ibadan, Professor Godwin Oyedokun, said there is a need to strengthen the legal framework to ensure that audit findings lead to mandatory sanctions or consequences for identified infractions. This includes enforcing laws that require accountability for financial mismanagement.

He said the Auditor General’s office should report not only on findings but also on the actions taken (or not taken) in response to previous reports by implementing a system for regular follow-up on audit recommendations.

“In some countries, such as South Africa and Kenya, the Auditor General has more authority and is often involved in prosecuting cases of financial misconduct,” he said, adding that we can have a similar situation in Nigeria.

According to him, “There should be established mechanisms to ensure accountability and enforce compliance with audit recommendations. However, everything depends on the broader political will to combat corruption.”

The Lead Director, Centre for Social Justice (CSJ), Barr. Eze Onyekpere, said there is a need for additional powers and funding for the office. “The office needs the power to sanction and follow up to enforce the sanctions,” he said.