The House of Representatives Committee on Finance has resolved to summon the Accountant General of the Federation (AGF) to explain an alleged spending of 20% of Internally Generated Revenue (IGR) by the Nigeria Investment Promotion Council (NIPC).
Chairman of the Committee, Rep. James Faleke, gave the directive after a resolution by the Committee at the resumed quarterly engagement with Ministries, Departments and Agencies (MDAs) on Thursday.
The directive followed a submission by the NIPC officials led by the Director, Finance and Administration (DFA), Akwada James.
It was discovered during the presentation that the agency generated N2.89 billion as revenue in the first quarter of 2024 but had an expenditure of N3.15 billion which the Committee said was an extra-budgetary spending for a fully funded agency.
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According to the Committee, a fully funded agency is to remit 100% of its IGR to the government coffers as required by extant financial laws.
Faleke said, “The revenue collection for first quarter 2024 is N2.89bn and your expenditure for that same period is N3.15bn. If you are giving us revenue for a quarter, the expenditure for that quarter should be stated not the whole. How can you give me expenditure for the whole year?
“A fully funded agency is supposed to remit their revenue 100 percent. So you spent money illegally. On what authority did you approve the usage of that money?”
In his explanation however, the NIPC DFA said their records are computed when companies pay the amount due and not when they issued invoices, hence the discrepacies regarding the period declared.
He claimed that the format was given to the agency.
He said, “It is like that because our income does not come at a time. So we have done committed spending in the budget for the year”.
However, Chairman of the Committee disagreed saying that there are laws and guidelines that are clear about how a revenue generating, fully funded agency operates as regards its income.
He said, “No sir, we don’t like that format here. It’s confusing. How can you tell me generated N2.8 billion and on record you spent N3.1 billion and we ask where did you get the money and who gave you the authority to spend above budget.
“I would like to see letter that authorized you to spend that 20 percent else we would charge all of you personally. We would write and ask that the money spent be deducted from your salaries until it is fully refunded. I need that letter on Monday”.
Chairman of the Committee therefore directed that the Managing Director (MD) of the Commission appears before the committee on June 5, 2024 with their comprehensive records.
He added, “The best approach is to invite the accountant general. In view of the contradictions, we would keep our documents and let the accountant general come and tell us what is responsible for this discrepancies for a fully funded agency”.
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