Reps order status enquiry of financial expenditure of NOTAP

From Okwe Obi, Abuja

The Committee also raised eye brow over what it described as outrageous expenditure for the purchase of vehicles worth N46 billion and purchase of office stationaries amounting to 23 million as  captured in the agency’s 2021 budget performance and expenditure.

These concerns were expressed at the resumed interactive session on the Medium Term Expenditure Framework (MTEF) from 2023-2925 hosted by the Finance Committee of House.

The Deputy Chairman of the Finance Committee, Sa’idu Abdullahi, expressed displeasure with the Fiscal Responsibility Commission for not doing enough to educate and ensure agencies of government make remittances of what they generate especially those fully funded by the Federal Government.

Meanwhile, the Director General of NOTAP, Danladi Mohammed said the agency’s 2021 internally generated revenue stood at N499 million, while a total sum of N124.7 million is remitted to the consolidated revenue account.

“Since we assumed office we have saved the country a revenue loss of N146 billion and we have also generated the sum of N499 million and remitted a total of 25 per cent which represents internally generated expenditure totalling N124.7 million.

“Our revenue projections for the year 2022 is N624 million, for the year 2023, we are  projecting N593.5 million, for 2024 we are projecting N682.5 million and finally for the year 2025 our projection is pegged at N648.4 million”.

The Committee chair in his reaction, picked holes in the financial records submitted by NOTAP.

“This figure represents just 25 per cent of your internally generated revenue despite being a fully funded revenue agency, so what happened to the remaining 75 per cent out of the funds your agency generated”, he asked.

He continued  “You are aware that this is a law of the parliament and it supersedes your establishment act.  As a head of an agency you are supposed to know this.

“Your agency that is fully funded 100 per cent so you are supposed to do 100 per cent remittance.

“Except you are telling us that you can stand on your own then we take you off the budget.

In his response, NOTAP DG said: “You see we have been communicated right from January this year so the onus is on us now to remitt 90 per cent”.

However, the decision to cut 10 per cent from the 100 per cent did not sit well with the lawmakers who insisted they must follow the provisions of the 2020 Financial Act which says all Internally Generated Revenue (IGR) must be remitted 100 per cent.

According to chairman, “So what happens to the 10 per cent. You do not have the right to touch one naira from what you are generating. You can make a case for your staff for salary increment. So on what basis are you carrying out the deductions.

“Your board can not constitute itself into a parliament, we make the laws here and you follow.

“Except you are telling us that your board is superior to parliament. Salaries and Wages do not have the right to deep from the Internally Generated Revenue (IGR)”.

In his explanation, the DG NOTAP said, “You see because of the sensitive nature of what we do in our office, our staff are pruned to inducement and that is why the Salaries and Wages Commission has approved 10 per cent of what we generate as well-fare package for the staff.

“When we assumed office we saved this country N146 billion so there’s nothing wrong if we give our staff incentive of 10 per cent.

“We got approval from Salaries and Wages Commission. So as far as this year is concerned having received letters from the Fiscal Responsibility Commission, we no longer carry out those deductions”.

Seemingly, a member of the Committee, John Dyeh in his interrogation demanded from the NOTAP if the N46 million expended on purchase of vehicles and the N23 million purchase of office stationaries were actually budgeted for.

In his reaction, Adedeji Olajide a member of the Committee said: “We are not here to appropriate but to look at your performance.

“If you have challenges in your operations, you have to bring that to appropriation and not here, right now we are dealing with the issue of your performance.

“Mr. Chairman, I will like you to stop here because right now we are moving back and forth on this issue and that’s not why we are are.

“Ours is to look at their expenditure documents and ensure that Nigerians are getting value for their money”.

Rep. Taiwo Oluga noted that: “I will like to use this opportunity to ask the Minister of Finance to speak the language these agencies understand, Mr. Chairman, right now our country is bleeding”.

On his part, Olajide moved a motion placing the agency of status enquiry.

“I honourable Adedeji Olajide hereby move that this agency should be put on status of enquiry to understand how this IGR was expended”.

The motion was seconded and unanimously adopted.