The Senate Committee of Finance will from tomorrow (Wednesday) commence the investigation of all revenue generating Ministries, Departments and Agencies (MDAs) to ascertain their compliance with relevant laws on internally generated revenue, it was learnt on Tuesday.
The Committee said the investigation is meant to ensure that more revenues accrue to the Consolidated Revenue Fund as well as ensure future compliance with extant laws.
Chairman of the Committee, Senator Solomon Adeola Lagos disclosed this during the 2021 Budget Defence of Federal Inland Revenue Service (FIRS), in Abuja, according to a statement by his media aide, Kayode Odunaro.
Adeola explained that the investigation would have commenced on Tuesday but it was deferred following the suspended of plenary by the Senate in honour of late House of Representatives member, Hon. Hassan Kila.
He insisted that the era of reliance on revenues from crude oil sales and a few other sources to finance government’s recurrent and capital expenditures is no longer sustainable.
He added that Government has to look into other revenue sources for its activities.
“There is no doubt that many MDAs are in default in their remittances of revenue generated during their operation as stipulated by the Fiscal Responsibility Act 2007 as well as the 1999 Constitution of Nigeria.
“In view of the dire straits that Nigeria is in now, this cannot be allowed to continue and the investigation is to get to the bottom of the non-compliance by MDAs,” Adeola said.
The Lagos West lawmaker further stated that the investigation will also include the remittances or otherwise of the 1% Stamp Duties accruing from all awarded contracts by all MDAs which were not remitted to FIRS stressing that this includes all government agencies beyond the over 460 revenue generating MDAs.
He added that the “probe is to cover from 2014 till date and submissions already made by MDAs are to be corroborated by the Office of the Accountant General of the Federation (AGF) as well as the records with the Fiscal Responsibility Commission who are part of the technical team of the Senate investigation.”