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Reps to amend establishment act of MDAs to curtail revenue leakages


The House of Representatives is to amend the establishment act of certain government agencies permitted to spend their Internally Generated Revenue (IGR) with a view to curtailing revenue leakages.

The House noted that most of the agencies leverage on their establishment acts to spend their IGR, thereby, denying the government needed revenue.Chairman of the House Committee on Finance, James Faleke, disclosed this, yesterday, at the end of the first session of the Committee/Ministries, Departments and Agencies (MDAs) interactive session on the 2022-2024 Medium Term Expenditure Framework (MTEF) in Abuja.

Faleke said the committee would suspend the exercise and resume on September 17, 2021 to present a comprehensive report to the House plenary on resumption.


The Committee noted that some of the acts that warrant certain government establishment to spend their IGR are self-serving and against national interest, saying the need to expeditiously amend such acts cannot be overemphasised.

The Committee also expressed worry over the generating agencies’ refusal to remit revenues due to government, saying their action is putting a major strain on resources, which ordinarily should be available for government to pursue its development objectives.

“The crude oil benchmark is $57 per barrel. Agencies of government embark on extra-budgetary spending contrary to the Constitution of the Federal Republic of Nigeria 1999 (as amended) and the Fiscal Responsibility Act. Some agencies are under-reporting the actual revenue generated.

“Some agencies that are yet to appear before the committee will be re-invited to appear on resumption of the House of Representatives, failing which our recommendations may include the removal of their capital and overhead from the 2022 budget,” he said.


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