FG Deploys Treasury Directors To NNPC, DPR, NPA, NCC, FIRS, CAC Others To Tackle Dwindling FGOEs Remittances
By Ossom Raphael
Abuja – The Minister of Finance, Budget and National Planning, Zainab Ahmed, on Tuesday said the federal government has put in place robust policies to maximise its non oil revenue.
Ahmed, said this in Abuja at the workshop for Directors of Revenue in Federal Government Owned Enterprises (FGOEs).
The minister explained that with dwinling revenue occasioned by shocks in global oil market partly induced by the Covid-19 pandemic and production cuts, public expenditure has been seriously hit, adding that oil revenue has become an exogenous variable which is highly volatile.
According to her, one of the possible solutions is to take advantage of the potentials in the non-oil revenues and make it robust
“We have seen the results on the increase in VAT through the Finance Act 2019 and efforts in diversifying the revenue base of Government by the Revenue generating agencies.
“An important sector with huge potentials is the revenue generation by the Federal Government Owned Entities. You may all wish to know that analysis of budgets of some of the Federal Government Owned Entities shows that these FGOEs have the capacities, if properly managed, to significantly improve the revenue base of the Federal Government. It is in this light that the deployment of the Treasury Directors is considered expedient to the selected FGOEs as a pilot test,” she said.
To arrest the downward slide in remittances by key FGOEs to the federation account, the minister stated that the presence of Directors of Revenue of the revenue generating agencies will ensure strict adherence to extant rules and regulations in the areas of compliance to approved budget and due process mechanism in procurement and payments.
“The Directors of Revenue, in the course of the discharge of their functions shall be involved in the revenue operations of the FGOEs, have better understanding of business processes and operations of the FGOEs and cause improved transparency and accountability in revenue reporting by the FGOEs. In addition, they are expected to seek for opportunities and avenues for revenue improvements which is the ultimate aim of the Government.
“The Integrated Revenue Monitoring System is being put in place to help the monitoring of the revenues of the FGOEs online real-time and to ensure its improved transparency and accountability”, she said.
On his part, Ahmed Idris, the Accountant General of the Federation (AGF), said the aim of the initiative is to achieve transparency and accountability in government revenue with special focus on FGOEs, improved revenue performance and provide sustainable source of funding for government budget execution.
While noting the idea is to boost revenue at all levels, the AGF said the Office will also “emphasis to them the need for accountability” as they will be given specific targets, objectives.
“They are expected to go and work on sp cific targets, specific framework and specific line of action. We already know what the FGOEs have been giving to the federal government, and we will build on that and explore better ways of generating more revenue.”
“With the present reality, there is need to think outside the box at the point we are today, we all need to think outside the box and come up with implementation strategies that will have positive impact in transforming our non-oil revenue sources of financing the budget”, Idris said.
He, however noted that “along the line if there were infractions there is going to be sanctions.”
He urged the Directors to participate actively, hoping that their passion and energy will be directed towards finding sustainable solution to the dwindling revenue profile the country is facing.
The three day event is for Directors of Revenue posted to key FGOEs which includes: NPA, NCC, NNPC, NIMASA, FIRS, NCS, CAC, DPR, FAAN, and Nigerian Shippers Council.
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