Tag: Finance Minister

  • What is the finance minister waiting for?

    Why did the authorities allow the issue of non-payment of the terminal benefits of Nigeria Airways’ pensioners get to this point where aviation unions are threatening to shut the airspace if there is no positive action in two weeks?

    This negative reaction to the Federal Government’s delay in paying N45bn severance packages to about 6,000 former workers of Nigeria Airways Limited (NAL) is understandable.

    The industry unions – National Association of Aircraft Pilots and Engineers (NAAPE), National Union of Air Transport Employees (NUATE) and Air Transport Senior Staff Services Association of Nigeria (ATSSSAN) –  wrote a petition  dated March 19 to the Minister of State for Aviation, Hadi Sirika, and sent copies to the Ministers of Labour and Employment and Finance. They drew attention to alleged insensitivity of the Minister of Finance who has not paid the pensioners despite approval of payment by the Federal Executive Council (FEC) in September 2017.

    The petitioners lamented:  “It is disheartening that the Honourable Minister of Finance has… negatively prioritised the President’s directive on this matter. She has equally in a most uncaring manner, refused to heed all entreaties by the hapless ex-workers. Not even the cries of the growing list of the avoidable deaths and other afflictions created by their excruciating conditions of existence had pinched the minister’s rock hard ear. Our previous letters to the minister has failed to move her just as earlier letter from the NLC on the matter.”

    It is over a decade since the President Olusegun Obasanjo administration liquidated the national carrier in 2004. The affected workers were not expected to wait interminably for payment of their entitlements. It is inexcusable that they are still waiting for payment.

    If the unions carry out their threat, it would take the struggle to another level. The pensioners had protested on February 6, reportedly blocking the Lagos Airport road for hours.

    Curiously, Sirika, who was represented by the Commissioner, Accident Investigation Bureau, Mr Akin Olateru, wondered at the annual retreat of the Joint Union Negotiating Council in Abuja, on February 13: “When Nigeria Airways was declared comatose, the people in the United Kingdom got full payment, those in Ghana got full payment, but why is it that we in Nigeria did not get same?”

    If ex-employees of the defunct Nigeria Airways who worked in the United Kingdom and Ghana got their full entitlements when the airline was liquidated but those who worked in Nigeria were not paid, what is the Minister of Finance waiting for in this case?

     

     

  • Zimbabwean army hands over finance minister to police

    Zimbabwean army hands over finance minister to police

    Zimbabwean Finance Minister, Ignatius Chombo, who was detained last week during a military coup, had been handed over to police, the lawyer representing him said on Friday.

    Prof. Lovemore Madhuku added that Chombo had also been hospitalised.

    Madhuku said the minister would appear in court, likely on charges of abuse of office, but that the minister was at Harare’s main hospital as he was not well, though he did not specify further.

    Human Rights Watch — Southern African Director, Dewa Mavhinga confirmed Chombo’s reappearance on Twitter.

    “Soldiers tonight dropped off Chombo at his house after days of military detention.

    Read Also: Fake’ Coup in Zimbabwe

    Law and Order police then arrested him and said they are taking him to Rhodesville police station,” he tweeted late on Thursday.

    Chombo was among several Mugabe allies reported by media to have been arrested after the military takeover on Nov.17 that forced the leader of 37 years resign.

    Read: Minister hails Bauchi governor for rice production 

  • Adeosun seeks new approach to curbing financial crimes, terrorist financing

    Adeosun seeks new approach to curbing financial crimes, terrorist financing

    Finance Minister, Mrs. Kemi Adeosun has called for the adoption of a new approach to the fight against financial crimes and terrorist financing if states in West Africa were to succeed in their efforts to curb these crimes in the sub-region.

    Mrs. Adeosun said unlike before, attention should now be directed at evolving preventive measures and other preliminary efforts, including strengthening existing agencies established to fight these crimes.

    The Finance Minister spoke in Abuja Friday at the opening session of the 18th Ministerial Committee meeting of the Inter-Governmental Action Against Money Laundering in West Africa (GIABA).

    Represented by the Permanent Secretary, Federal Ministry of Finance, Mahmud Isa Dutse, Mrs. Adeosun said: “I want to state that it is not the arrest, investigation and prosecution of culprits only that make up the fight against the menace of money laundering and financing of terrorism as many would want to believe.

    “Much more is needed to be done in the administration, prevention and other preliminary efforts, much of which involve building, strengthening and administering as well as developing appropriate policies and practices for relevant anti-corruption, anti-money laundering and combating the financing of terrorism institutions.

    “Focus should also be centered on bringing the existing anti-money laundering and combating financial crimes (AML/CFT) institutions to the attention and understanding of all stakeholders.

    “Stakeholders need to have good understanding of these institutions – both local and international – that are in place to fight corruption, money laundering and financing of terrorism; what is to be done, by whom and the timeline required to do them,” Mrs. Adeosun said.

    GIABA’s Director General, Colonel Adama Coulibaly praised the Nigerian government for its various initiatives aimed at addressing the challenges of financial crimes and terrorist financing.

    Coulibaly said “Recent strong measures taken by Nigeria, including the freezing of all bank accounts not covered by a bank verification number (BVN) to conduct transactions on all banking platforms in Nigeria for the benefit of the Public Treasury are to be hailed.

    He said these measures “should be complemented with those expected by the Egmont Group and the international FATF community to definitively consecrate the independence of the Financial Intelligence Unit vis-à-vis other national entities involved in the fight.”

    Coulibaly called for the continued support and commitment of GIABA’s member nations to enable the agency deliver on its mandates.

  • Adeosun, Udoma to face senate over 2017 budget implementation

    Adeosun, Udoma to face senate over 2017 budget implementation

    • As Saraki urges senators to stand for Nigeria’s unity

    Finance Minister, Mrs. Kemi Adeosun and her Budget and National Planning counterpart, Senator Udoma Udo Udoma have been invited to brief the Senate on the implementation of the 2017 budget.

    Senate President, Abubakar Bukola Saraki disclosed this Tuesday in his welcome address to senators.

    The upper chamber resumed plenary Tuesday after about two months recess.

    Saraki said that the invitation of the two ministers became necessary in order for senators to be abreast with the level of implementation of the 2017 budget.

    The Senate President also asked senators to always stand for the unity and indivisibility of the country as well as condemn in the strongest term all forms of violence.

    Saraki said: “By the first week of October, we expect to begin the review of the implementation of the 2017 budget. To set the stage for this, we expect to invite the Ministers of Finance and Budget Planning to come and brief the Senate on implementation so far. Nigerians want to see a more significant improvement in the level of implementation of the budget this financial year. Let me therefore use this opportunity to call on all our standing committees to begin the process of putting together their oversight plan for a close and proper review of the performance of the 2017 Budget. In the same token, we must remind ourselves of the initiative we started and for which we have significant stride – that is, the Made in Nigeria initiative. It is time to enter the next stage of this initiative; the oversight of implementation to ensure that the policy yields expected gains.

    I will like therefore to see the committees demonstrate proactivity and readiness to engage government to ensure that at least a significant portion of our annual budget is fully dedicated to local procurement. All committees of the Senate must be involved in this and find better channels to engage our people and enable feedbacks. However, for these efforts to be successful it is required that we maintain peace and political stability. Hence the need for all of us to fight to keep Nigeria united and prosperous. 

    “Distinguished colleagues, a house divided against itself will not stand. More than ever before, we need to stand for the unity and indivisibility of our country. We must condemn in the strongest possible terms all forms of violence as a form of engagement. The Constitution and laws have laid down tools and procedures for us to push through our interest as all democratic nations do. Our nation is blessed with exceptionally talented and beautiful people, we are collectively strong and indomitable and it is time for all of us to stand up for our nation. Our dream of a virile nation must keep us motivated and this dream is already at the horizon.”

    The Senate President noted that they have in the last two sessions of their term devoted enormous time, working hard on critical legislation, some with historical essence and others with relatively high-level implications for enhancing the welfare of Nigerians and putting food on their tables.

    He expressed happiness that some of the bills which has since become law have already started yielding expected gains.

    “This is especially so with the Secure Transactions in Movable Assets Act, with increased lending to private sector. We expect more to come. Our ultimate aim will be, inclusive growth, full employment for our people and frameworks that enable our young people to run viable startups,” he said.

    Saraki continued: “Distinguished colleagues, as a firm believer that economic security is first and most important security we can offer our people, it is the apparent inadequacy of this security that is at the heart of the general disaffection of our people towards government. We have done this with the belief that with less hunger on the street; with more of our people gainfully engaged; insecurity will be significantly reduced and our economy revamped. In this period, I expect us to conclude work on the National Transport Commission Bill, and the National Road Funds Bill, the Petroleum Industry Fiscal and Host Community Bill which are pending. It is my hope that we shall conclude work quickly on the Bank lending rate reduction initiative and the National Payment Systems Bill.

    “As we continue to take action to strengthen our economy, let me use this opportunity to congratulate all Nigerians for working together to get us out of recession. While we congratulate ourselves for exiting the recession, it is important that we don’t rest on our oars as this is not an end in itself. There is a lot of work ahead. Our aim is to see our economy create millions of new jobs and see growth rates of 7% or more. This is why the implementation of the 2017 budget is crucial.

    “Distinguished colleagues, as leaders, closest to our people, we must rededicate ourselves to the values we have institutionalized in this chamber. In this chamber, we are first and foremost, Nigerians. Yes, we are Igbos, Yorubas, Hausas, Fulanis. Yes, we are Muslims, Christians and traditional worshipers. But we must in all our conversations and decisions continue to be first and foremost Nigerians and as Nigerian citizens be our brothers’ keepers. Too many of our youths, too many of our families from the South to the North need a lifting. Our job is to help government give them a hand and ones again make them feel great again being Nigerians. This is our mission.

    “As we work to even make our Constitution better, it must be remembered that Constitution review is a continuous process which we must undertake with the vision of the future in our minds. The process we have already will continue in earnest with the meeting of the speakers of the various state Houses of Assembly and the National Assembly with a view to moving forward with the process. As promised, we will revisit and consider areas of the Constitution we believe will further strengthen our federation and enable our collective dream for a more prosperous Nigeria.

     “In the fight against corruption, aside the bills we have passed, it is important that we also sharpen up our oversight tools to ensure that government remains accountable always. However, I urge us all to more than ever, operate above board ourselves. In the last two years, we have successfully exposed numerous cases of corruption in our agencies and officers of government and as a result saved government enormous amount of public resources. This is what Nigerian people expect of us and we must continue to deliver on this. We must not make the mistake of resting on our oars. I say this to encourage you to keep up with the good works of exposing corruption as you have been doing so far. Yes, like Senator Isah Hamma Misau who had the courage to expose deep rooted institutional corruption, you will be attacked, blackmailed and insulted but, unlike any former Senate before this, we will not bow or be intimidated.

     “Distinguished colleagues, our focus on interventions critical to our national development will continue in this session. We will be interacting with stakeholders with the aim of repositioning our education sector and the health sector especially with the health insurance subsector as key primers of the economy. The major direction will be to expand access to basic education and health, incentivize investment in these critical sectors and find lasting solutions to issues of strikes and interruption in these sectors.

     “Dear colleagues, we are all witness to the revolutionary growth of innovative works and remarkable fits Nigerians both in the entertainment industry and software development are making across the globe. However, their ability to fully harness and reap the fruits of their effort continues to be hampered by our intellectual property regime which is yet to be reformed to meet with today’s digital realities and opportunities. We are determined to contribute our quota to make their lives easier and better by initiating and paying close attention to our intellectual property (IP) rights frameworks.

     “Distinguished colleagues, a lot has happened in our nation within the last few weeks especially with the floods. Let me take a moment to commiserate with all Nigerians who may have been affected by the recent floods. Our hearts and prayers are with you at this period.

    “On a salutary note, I am happy to report to you distinguished colleagues that while we were away, we also took note of some of the strides Nigerians have been making. We congratulate our women on the wining of the African Basket Ball Championship. We also congratulate our Super Eagles on their journey so far for the world cup qualifiers and we will continue to support and encourage them.

    “Before, I conclude this speech, let me on another winning note and on your behalf welcome Mr. President who has acknowledged his return to office through an executive communication earlier within the period of our vacation back to the saddle. We pray that the almighty Allah will continue to grant him full restoration.”

  • Finance minister: Treasury looting too easy in Nigeria

    Finance minister: Treasury looting too easy in Nigeria

    Minister of Finance Kemi Adeosun yesterday said high level corruption was endemic in Nigeria because it was too easy for people to loot public funds.

    He said the Federal Government was working to block avenues for looting and make it harder to hide stolen funds abroad.

    Adesoun spoke when she chaired a showcase session on the second day of the conference on “Promoting International Cooperation in Combating Illicit Financial Flows and Enhancing Asset Recovery to Foster Sustainable Development.”

    The session had the theme: “Practical steps to stopping illicit financial flows.”

    It was organised by the Presidential Advisory Committee Against Corruption (PACAC) in collaboration with the Ministries of Justice and Foreign Affairs.

    The minister said: “We are taking steps to improve tax administration, to improve compliance and to generally make it a little more difficult for people to loot the treasury.

    “My experience from the little time I’ve spent as a minister is that it’s far too easy to do these things in Nigeria, and we’ve got to make it much more difficult.”

    The minister said it was better to prevent looting than to recover stolen funds, which she described as difficult.

    “From the Ministry of Finance perspective, our view is that prevention is better than cure. Recovering money is exciting but it’s difficult. It takes years

    “We’re still battling to recover money that was looted from Nigeria 20 years ago. So my perspective as Minister of Finance and as an accountant is: how do we block the money getting out in the first place?

    “How do we strengthen our controls? How do we create the early warning systems that tell us to flag certain transactions?  Let’s stop the money going out; let’s stop the loss, and then we can work on recovery,” she said.

    According to Adeosun, Nigeria could have achieved most of its development goals if public finds had been better channeled.

    “There’s a saying that you can’t miss what you’ve never had. But when we see our crumbling infrastructure, we are missing what we never had.

    “We are missing the road, the power, the capital projects that could have been funded with money that has left our shores illegally, or money that is concealed within the country equally illegally,” Adeosun said.

    The guest speaker, President, Global Financial Integrity, Washington DC, Raymond Baker, suggested ways to stop illicit financial flows, including whole government approach, in which all agencies collaborate and share information; indentifying beneficial ownership of stolen funds, effective use of legislation and developing better monitoring systems.

    He said assets recovery should be a diplomatic issue to make countries realise that relations can be adversely affected due to refusal to return stolen funds.

    Baker also recommended the use of global information exchange systems, among others.

    PACAC Executive Secretary Prof Bolaji Owasanoye, said looting takes place through “suspence accounts” in which banks open accounts without names and numbers, yet people lodge money in them.

    “We want to see bankers go to jail for it,” he said, adding that better use should be made of the Bank Verification System (BVN) in tracking stolen funds.

    The professor of law said bank chief executive officers and customs officials, among others, should be made to declare their assets.

    “Many CEOs get richer than their organisaions. It’s time to use the legislation on assets declaration  against banks and customs officials,” he said.

    Owasanoye said there were delays in recovering stolen funds because “the person holding money hardly ever wants to leave it”.

    He urged countries holding unto Nigeria’s looted funds to return them because there was no longer fears they could be re-looted.

    Acting Executive Secretary of the Economic Commission for Africa (ECA), Addis Ababa, Dr Abdalla Hamdok, represented by Mr Adeyinka Adeyemi, called for an end to secrecy in money transfers.

    “We have to undercut secrecy,” he said, adding that if $100million, for instance, moves from Nigeria to another country, it should not be shrouded in secrecy as is presently the case.

  • N17billion: Reps summon Adeosun, Okonjo-Iweala, others

    N17billion: Reps summon Adeosun, Okonjo-Iweala, others

    Finance Minister Mrs. Kemi Adeosun and her predecessor, Ngozi Okonjo-Iweala, have been summoned to appear before the House of Representatives over alleged abuse and breach of the Procurement Act, 2007.

    The House Committee on Public Procurement, which invited the ministers, directed that they should appear before it today.

    Others expected to appear before the committee are: former Head of Service (HoS) Mr. Steve Otunla and former Accountant-General to the Federation (AGF) Mr. Jonah Otunla.

    The committee had on Thursday summoned Adeosun and some others over alleged payment of N17 billion to five firms believed to be ghost companies as consultancy fees.

    The committee, in an investigative hearing yesterday in Abuja, said that summoning the top officials was to ensure proper investigation. (more…)

  • Violation of Procurement Act: Adeosun, Okonjo-Iweala, others to appear before Reps

    Violation of Procurement Act: Adeosun, Okonjo-Iweala, others to appear before Reps

    Finance Minister, Mrs Kemi Adeosun and her predecessor, Ngozi Okonjo-Iweala, have been summoned to appear before the House of Representatives over alleged abuse and breach of the Procurement Act, 2007.

    The house’s Committee on Public Procurement, which invited the ministers, directed that they should appear before it on Tuesday.

    Others expected to appear before the committee are former Head of Service (HoS), Mr Steve Otunla and former Accountant-General to the Federation (AoGF), Mr Jonah Otunla.

    The committee had on Thursday summoned Adeosun and some others over alleged payment of N17 billion to five firms believed to be ghost companies as consultancy fees.

    The committee in an investigative hearing on Monday in Abuja said that summoning the top officials was to ensure proper investigation.

    Chairman of the Committee, Rep. Oluwole Oke (Osun-PDP), who issued the order inviting the officials, read the Riot Act to all Ministers and Accounting Officers of Ministries, Departments and Agencies (MDAs).

    He said “the shortest way to Kuje prison is through breach of procurement laws.”

    Worried at the slow pace of the investigative hearing due to the poor attitude of civil servants towards releasing of vital documents, the committee attended to only those who made available necessary documents.

    The members decried the discrepancies between the submissions made by Federal Ministry of Finance and Central Bank of Nigeria (CBN).

    They observed that out of the 12 pre-shipment Inspectors and two monitors, who benefited from the N17 billion, seven were appointed in line with due process while five were appointed through the back door.

    Oke call for overhaul of the entire process.

    He pointed out that a former governor of Bauchi State and a former member of the House of Representatives, who were part of those who promulgated the procurement law were sentenced to five years imprisonment for infractions.

    He added that a former Chairman of Nigeria Ports Authority (NPA) was also sentenced to two years imprisonment for breaching the Procurement Act “before the Supreme Court intervened’’.

    The chairman advised the invited stakeholders to bring before the committee Presidential Approvals, Letters of Awards, Agreements signed with the contractors and performance records.

     

  • Governor builds hotel with $3m Paris Club refund cash

    Governor builds hotel with $3m Paris Club refund cash

    Cash lodged in Rep’s account through proxy

    EFCC places restriction on NGF’s N8b, $80m

    Detectives have traced $3million of the controversial London-Paris Club loan refund to a governor, The Nation learnt on Thursday.

    The cash is believed to be part of the N19billion illegally deducted from the refund by the Nigeria Governors Forum (NGF), according to Economic and Financial Crimes Commission (EFCC) sources.

    The cash has been found in the account of a member of the House of Representatives who got it through a  proxy, the lawmaker’s brother. Both were not available for comments. The  $3million is being spent on building a 100-room hotel in Lagos, which the governor may forfeit to the Federal Government.

    Also, the EFCC has placed a restriction on N8billion and $80million in the naira and dollar accounts of the NGF.

    The Presidency has released N1. 266.44trillion to the 36 states in the past one year. The cash includes N713.70billion special intervention funds to states.

    Following protests by states against over deduction for external debt service between 1995 and 2002, President Muhammadu Buhari had approved the release of N522.74 billion (first tranche) to states as refund pending reconciliation of records.

    Each state was entitled to a cap of N14.5 billion being 25% of the amounts claimed.

    Finance Minister Mrs. Kemi Adeosun said the payment would enable states to offset outstanding salaries and pension which had been “causing considerable hardship”.

    The governors sought for the refund to states and local governments at a meeting with President Buhari on May 24, last year.

    A source, who spoke in confidence with our correspondent, said: “The EFCC is still investigating the N19billion allegedly diverted from the loan refund. The commission has so far interrogated 15 companies, more than 10 individuals and over eight bureaux de change used to divert the cash.

    “The latest bend of the investigation is the discovery of $3million linked with another governor who benefited from the illegal deduction. The governor had engaged a member of the House of Representatives(who was also a former commissioner) to launder his share.

    The lawmaker was said to have wired the $3million into his brother’s account before moving it into his own. Upon interrogation,  one of the suspects admitted that the cash was for the ongoing construction of a 100-room hotel for the governor.

    “About $500,000 of the $3million has been recovered by the EFCC. It is a scam in which many people benefited and a sizeable number of proxies used to launder the funds,” the source said.

    The $3million was transferred to the lawmaker for the governor from the $86million in the NGF’s domiciliary account.

    “We will do our best to recover the already diverted part of the $3million. We may also apply for the forfeiture of the hotel to the Federal Government,” the source said, pleading not to be named so as not to jeopardise the investigation.

    The $86million is said to be for the payment of consultants who worked for the refund for the 35 states. But none of the consultants has been paid. Some of them have already gone to court.

    The source added:  “The EFCC has placed a Post No Debit restriction on the NGF’s  account with N8billion and domiciliary account with $80million.

    “Out of the $86million, $3million was wired to the governor through a proxy and another $2million shared out.

    “The EFCC is ready to lift the restriction on the two accounts of the NGF on  a condition that the consultants and legal advisers who deserve to be paid will be given what they are entitled to in line with the agreement signed with the NGF.

    “We want the NGF to involve the EFCC in the disbursement to avoid another diversion of the cash. As it is now, consultants and legal advisers are complaining that they are being shortchanged by the governors.”

    The EFCC had earlier traced about N500million, which was meant for a consultant, to the account of a governor.

    The cash has been retrieved.

  • Adeosun, G24 discuss tax revenue, compliance

    Adeosun, G24 discuss tax revenue, compliance

    Finance Minister, Kemi Adeosun has discussed with fellow finance ministers in the G24 Group on ways to boost tax revenues and compliance to drive sustainable economic development.

    Speaking at the ongoing International Monetary Fund (IMF)/ World Bank Spring Meetings in Washington, she said revenue mobilisation is critical to the success of Nigeria’s economic reform agenda.

    “We have an unacceptably low level of non-oil revenue, and much of that is driven by a failure to collect tax revenues. With a tax to Gross Domestic Product ratio of only six per cent, one of the lowest levels in the world, we have a lot of work to do if we are going to build a sustainable revenue base that will deliver inclusive growth. Our data gathering programme over the last year has now given us the tools we need to be more aggressive at pursuing tax avoiders, both domestically and abroad,” she said.

    Speaking further, she explained that as some of her contemporaries in the G24 have done successfully, Nigeria is going to focus on tax in 2017 through an asset and income declaration scheme to address her low tax revenue collection and ensure improved compliance, a broader tax base and more sustainable revenue.

    The minister also highlighted the need for strong budget implementation and transparency to create trust and accountability in government: “While we focus on raising revenue’s and bringing people into the tax system, we must be equally aggressive in our approach to budget implementation and transparency. Our people must know where their hard earned tax contributions are being spent and the impact that they are having on national development, and the daily lives of citizens. This will be a core focus for us.”

    The Minister also met with the ratings agencies Moody’s and Fitch to update them on progress towards economic reform objectives, and met with the World Bank Country team to discuss the status of on-going projects in Nigeria, and the pipeline of projects for 2018.

    The Minister will be attending meetings on Closing the financing gap for water, affordable housing finance food security and nutrition over the coming days as part of the government’s focus on sustainable solutions to some of Nigeria’s most pressing social challenges.

    “While the infrastructure that we build to facilitate power and transportation is vital to our economic growth, we are equally focused on addressing the challenges we face to deliver services to our people. Water quality and nutrition are fundamental to quality of life, but also deliver economic benefits. We must do more to improve living standards for our people and so addressing food security, water and nutrition are central to our reform agenda. This isn’t just about economics, these are the basic responsibilities of government, we need to redouble our efforts and show people that their tax revenue can deliver real change in their daily lives.”

     

  • Budget: Finance minister asks NAFDAC to refund N2.8b

    Budget: Finance minister asks NAFDAC to refund N2.8b

    The Minister of Finance, Mrs. Kemi Adeosun, has asked the National Agency for Food and Drug Administration and Control (NAFDAC) to refund N2, 854,095,289.02 into the Consolidated Revenue Fund being Operating Surpluses for 2016.

    Also, the minister has summoned the Acting Director-General of NAFDAC, Mrs. Yetunde Oni, and members of her management for a meeting today to explain why the agency refused to remit the surpluses.

    The minister queried why NAFDAC has proposed in its 2017 Budget to expend 100% of its Internally Generated Revenue (IGR).

    These measures were contained in a letter to NAFDAC which was obtained yesterday.

    The letter was titled “Review of 2017 revenue and expenditure estimates and the repayment of outstanding operating surplus.”

    The letter said:  “The President Muhammadu Buhari led administration is committed to fiscal discipline, financial accountability and maximisation of revenue generation from its various agencies.

    “In line with Sections 21 and 22 of the Fiscal Responsibility Act, 2007 (as amended), the Minister of Finance is required to receive and review the Annual Estimates of Revenue and Expenditure (Draft Budgets) of Public Agencies and Corporations prior to their transmission to the National Assembly for approval.

    “The draft budget for 2017, submitted by the National Agency for Food and Drug Administration and Control (NAFDAC) has been reviewed and the following observations arise:

    “The projected cost to income ratio of NAFDAC is 100% which even exceeds the 75% target allowed for agencies which are not funded by Federal Government.

    “It is therefore a matter of grave concern that NAFDAC, which is fully funded from the budget (by payment of salary/ overhead) proposes to expend 100% of its Internally Generated Revenue (IGR). This contravenes the Finance circular FMF/HMF/2016/1/2 of November 22nd, 2016.”

    The letter added: “I am therefore requesting NAFDAC to attend an urgent meeting in my office on Friday 17th March at 11:00am together with officials of the supervising Ministry (Ministry of Health) to resolve this issue.

    “ It was further observed that NAFDAC augmented its employee costs by N688,421, 881.00 by using IGR in addition to appropriated sum of N4,443,243,393.00 in 2017 draft budget. Kindly provide necessary explanation and authorisation for this increase outside appropriation.

    “NAFDAC is indebted to the Consolidated Revenue Fund in the sum of N2,854,095,289.02 with regard to prior years’ Operating Surpluses that have not been remitted. It is expected that full payment be received within 2017 or a repayment agreement be reached with the Office of the Accountant General of the Federation.

    “In the Interim, NAFDAC is advised to drastically revise its draft budget downwards in line with the fiscal discipline expected under the current administration.”