From Ndubuisi Orji, Abuja
The House of Representatives has said it will probe the shortfalls in oil revenue, noting that the Budget Office has estimated over N2.7 trillion revenue loss in 2024.
The chairman, House Committee on Finance, James Faleke, disclosed this, on Tuesday, stated that shortfalls in government revenue has resulted in deficit budget over the years. He explained that this has led to the government resorting to both domestic and foreign borrowing to implement its budgets.
The lawmaker, who spoke at an interactive session, between the committee and Ministries, Departments, Agencies and other stakeholders on government finances on the 2024-2026 Medium Term Expenditure Framework and Fiscal Strategy Paper (MEET/FSP), said an increase in government revenue is the surest way out of the country economic challenges.
He said “our revenues have been reducing over the years due to decreases in oil revenues which used to be our major earner. The Committee has vowed to get to bottom of these oil shortfalls.
The NNPC, our oil asset managers, give oil theft as the main cause; however how are our marginal field operators performing vis a vis the various oil fields potentials?
“How much deductions at source from oil productions are occurring due to NNPC signed agreements over the years that are now impacting on our revenues? Even in the light of these revenue shortfalls, the Federal Government is still losing revenue from various waivers and exemptions granted various organisations.
“In 2024 the Budget Office has estimated a loss in revenue of over N2.7 trillion. Is the government getting the alternative benefits of these revenue losses? Is the Public getting value for money for these revenues foregone or is it just beneficial to a small set of well-connected people?”
The lawmaker lamented that “continuous borrowing due to these budget deficits has ballooned our debt servicing payments to the sad situation where last year we spent over 95% of our revenues on debt servicing.”
Faleke, while stating that the parliament would ensure that the government gets value for money, in all agreements, said the committee would not accept laxity on the part of MDAs saddled with the responsibility of negotiating on behalf of the government.
According to him, “the Committee has observed various factors that have caused shortfalls in expected revenues as well as charges to government revenues from commitments by agencies of government. The Committee will not accept such laxity on the part of MDAs in not negotiating the best for the Country. The $ 11 billion P & I D fiasco is still fresh in our minds where the whole Country was almost held hostage to a fraudulent agreement.
“Another agreement signed on behalf of the government by NBET and Azura Power has committed payments of over $30m per month. This agreement is dollar denominated and applicable even now in times of acute foreign exchange shortages.”