The House of Representatives Committee on Finance has commenced deliberations on the 2024-2026 medium term expenditure framework and fiscal strategy paper (MTEF/FSP).
The committee chaired by Mr James Abiodun Faleke at the start of proceedings expressed concern over the estimated loss of over N2.7 trillion in the 2024 financial year.
He remarked that shortfalls in government revenue has caused the Government to operate a deficit budget over the years leading to both domestic and foreign borrowing to implement the expenditures as planned.
He said it was unfortunate that the continuous borrowing due to these budget deficits has ballooned the country’s debt servicing payments to the sad situation where last year over 95% of revenues was spent on debt servicing.
He further identified the laxity on the part of ministries, departments and agencies (MDAs) in not negotiating the best for the country, shortfall in oil revenue as key factors impeding revenue generation for the government.
He refered to the the $ 11 billion P & I D fiasco and the agreement signed on behalf of the Government by NBET and Azura Power which committed payments of over $30m per month in dollar denominated currency to buttress his assertion.
He reiterated the Committee determination to get to bottom of shortfalls in oil revenues.
He noted: “The NNPC, our oil asset managers, give oil theft as the main cause; however how are our marginal field operators performing vis a vis the various oil fields potentials? How much deductions at source from oil productions are occurring due to NNPC signed agreements over the years that are now impacting on our revenues?
“Even in the light of these revenue shortfalls, the Federal Government is still losing revenue from various waivers and exemptions granted various organisations.
” In 2024 the Budget Office has estimated a loss in revenue of over N2.7 trillion.Is the Government getting the alternative benefits of these revenue losses?
“Is the Public getting value for money for these revenues foregone or is it just beneficial to a small set of well-connected people?
“Independent revenue of Government is still the largest individual sub-head of the Federal Government and the Committee expects these revenues accrued from operations of Government Owned Agencies to surpass the estimates submitted by the Budget office.”
