FG loses N1.2trn as MDAS fail to remit operating surpluses

The Federal Government has lost over N1.2 trillion from failure of some Ministries Departments and Agencies (MDAS) to remit 80 percent operating surplus to the Consolidated Revenue Fund.

The amount is obtained from analysis of the annual audited financial reports submitted to the Fiscal Responsibility Commission by the concerned agencies.

Chairman, Fiscal Responsibility Commission (FRC) Victor Muruako who disclosed this Wednesday while briefing journalists in Abuja, said more was still with MDAS that have either failed to dutifully audit their accounts or chose not to forward copies of their audited financial reports to the Commission as required by law.

Businessday gathered that 32 MDAS have not submitted their audited financial statements since their inclusion in the Fiscal Responsibility Act (FRA) in 2016. They include Administrative Staff College of Nigeria, Bank of Agriculture, Bank of Industry, Federal Radio Corporation of Nigeria and National Broadcasting Commission (NBC).

Others are the National Business And Technical Examination Board, National Council of Arts & Culture, National Drug Law Enforcement Agency, National Lottery Trust Fund, National Space Research & Development Agency, National Sports Commission, National Steel Development Fund, Nigeria Immigration Service, Nigeria Security & Civil Defence Corps, Nigerian Content Development & Monitoring Board, Sandard Organisation of Nigeria as well as Small & Medium Enterprises Development Agency of Nigeria.

Muruako, however, said the Commission has paid over N2.15 trillion into the Consolidated Revenue Fund of the Federal Government over the past years as operating surplus from government corporations since its establishment.

While highlighting the contributions of the Commission to the nation’s macroeconomic management, the FRC chairman said: “Improved mobilisation of domestic revenues - The generation of independent revenue through the payment of operating surplus is one aspect of the mandate of the Commission that has added great value to governance. Governmentowned enterprises (GOES) and corporations are, by the

Act, committed to remit 80 percent of their operating surpluses to the Consolidated Revenue Fund (CRF) of the Federal Government.

“The payment of operating surplus into the CRF is borne out of the need for the government to generate funds in order to meet revenue requirements in its annual budget execution. It is also important that corporations make returns on government’s investment more so because the corporations neither pay income taxes nor dividends.

“Through the persistent and continuous engagement of MDAS by the Fiscal Responsibility Commission and – especially with the support of the National Assembly - the Federal Government’s share of operating surplus from these corporations has continued to increase over the years,” he said.