From Ndubuisi Orji, Abuja
The House of Representatives has said it would raise the target for all revenue generating Ministries, Departments and Agencies (MDAs), as a means of bridging budget deficits.
The Speaker, Tajudeen Abbas, who stated this while inaugurating the House Special Ad-hoc Committee on Crude oil theft, said the country loses about 300, 000 barrel of crude oil daily to theft, vandalism and other criminal activities.
He decried dwindling government revenue, stating that the country was reported to have incurred loss of oil revenues estimated at N1.29 trillion annually due to industrial-scale theft. Consequently, he noted that the main objective of the panel was to determine the immediate and remote causes of oil theft and recommend measures to curb the menace to the House.
The speaker explained that the setting up of the special ad-hoc committee underscores the commitment of the House to protect the country’s resources, for the benefit of all citizens and punish economic saboteurs.
He said: “I charge you, therefore, to investigate all dimensions of oil theft, focusing on the actions of all actors, including criminal gangs, militia groups, the local populace, company employees and security agencies. The findings and recommendations from your work will serve as a foundation for sustainable solutions; rather than ad-hoc measures. I also expect your efforts to contribute significantly to enhancing the integrity of our oil sector and promoting sustainable development.
“Nigeria is facing significant financial challenges due to a combination of rising expenditures and falling revenues. You may recall that the proposed revenue and expenditure for 2023 stand at N9.73 trillion and N20.51 trillion, respectively.
“This means a fiscal deficit of N10.78 trillion, which is about 4.78 percent of the GDP. This deficit is the largest in Nigeria’s history, and with a budget more than double the proposed revenue, we are faced with the challenge of borrowing to cover the gap.
“It is for this reason that the House will significantly raise the targets for all government revenue-generating agencies. I am convinced these agencies can generate much more than they currently do. In our recent engagement with the MDAs on the 2024-2026 MTEF, we have made it clear that a lot more will be required of our key revenue-generating agencies in 2024. We expect them to double their total annual revenue profile. However, to achieve this, these agencies must reduce wastage and improve efficiency, especially in collection.
“In addition to this, revenue-generating agencies must ensure transparency in the management of generated revenues. Let me state clearly that the House will not tolerate low performance by agencies or failure to show evidence of required remittances to the Federation Account. We shall also closely monitor and undertake strict oversight of the activities of all revenue-generating agencies to ensure compliance.”
The chairman of the panel, Alhassan Ado-Doguwa, in his speech, said despite the contribution of the oil and gas sector to the national economy, the country is yet to get optimum benefits from the sector, owing to oil theft and losses through pipeline vandalism among others.