Nigeria boasts of 460 revenue-generating Ministries, Department, and Agencies, MDAs currently n operational capacities. Taking advantage of the huge presence of these revenue-generating MDAs is only a matter of necessity for a nation like Nigeria looking to diversify its revenue base away from the ever-dwindling oil market.
It is in the light of raking in more funds to the government coffers that the upper chamber of the National Assembly, House of Senate is currently investigating these MDAs to guarantee their compliance with relevant laws on Internally Generated Revenue.
Taxmobile.Online learnt that the investigation is to ensure that more revenue is remitted to the Consolidated Revenue Fund and to also serve as the yardstick for future compliance with available extant laws.
The chairman of the committee and Senator representing Lagos West, Solomon Adeola reiterated the need to diversify away from crude oil by harnessing the full potential of these MDAs.
On the scope of the investigation, the second-term 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 the Federal Inland Revenue Services, FIRS.
In his words,
“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.
“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.”
Taxmonile.Online in its Fourth-Quarter 2020 release of the Nigerian Tax Review had stated that the House of Representatives had also called on Ministries, Departments, and Agencies to remit all Internally Generated Revenue due to the Federal Government coffers for proper funding of the 2021 budget.
Chairman of the House Committee on Healthcare Services, Yusuf Sununu, made the call while addressing some MDAs at a budget defense session in Abuja on Monday 2nd November 2020.
With the current investigation by the House of Senate and earlier intervention by its counterpart in the lower chambers, the searchlight is beamed on these MDAs and the need for them to operate more efficiently.
Taxmobile.Online will bring you more updates as they unfold.