FG Misses N2.691trn Q1 Revenue Target, Earns N318.5bn

The federal government suffered a massive budget deficit in the first quarter of 2024, missing its revenue target of N2.69 trillion by a whopping 745 per cent.

The accountant general of the federation, Oluwatoyin Madein said that the federal government revenue inflows amounted to a total of N318.5 billion in the first quarter of the year, 2024.

Madein said this at a hearing organised by the House of Representatives Committee on Finance to monitor the revenue by  federal government agencies.

Represented by the director, Revenue Expenses, Felix Ogundayero, the Accountant General said this was against a total expected revenue of N2.591 trillion for the year 2024.

Madein added that a reconciliation of the figures was still ongoing and what was declared is what is available at the moment.

She said: “Reconciliation is still being done but the total revenue inflows to the federal government for January to March amounts to N318. 5 billion as against a total budget of 2.691 trillion.

“For the budget, the bottom up cash planning policy is on course and the 2024 budget is going to be implemented via that policy and officers have been retained and sensitization is ongoing to ensure that MDAs are well equipped on the modalities and conditionalities.”

The chief executive officer Ministry of Finance Incorporated (MOFI), Dr Armstrong Takang also disclosed that so far N101 billion have been declared as dividends by some agencies under it.

Takang said the report presented was not comprehensive as some agencies were yet to declare their dividends due to various factors.

He said: “So far we have received dividends declared by some companies. But for many others their reports are either being prepared and have not been completed or have been completed but they have not gone to their boards for approval and subsequently the AGM and as such we cannot use the number of their dividends until that has been done based on the corporate governance rules.

“Based on the number so far, it’s about N101 billion from the entities we have identified.

We continue with other entities whose dividends have not been paid to ensure we go through the process of them passing it at the board level and the AGM before the figures are sent to us and the money rendered to the treasury.”

Also, the Nigerian Agricultural Insurance Corporation, represented by Dr Philip Ashunze disclosed that out of a total expected revenue of N10 billion, it had only generated N70 million so far.

Chairman of the Committee, Hon James Faleke, said the essence of the hearing was in line with their duty as lawmakers to oversight and ensure that the revenue estimates which were submitted by each agency before the 2024 appropriation bill was passed into law are met.

He said: “We have to ensure that those estimates are met. The Appropriation has become a law and so that revenue that you proposed to generate in the year we take it upon ourselves to do it on a quarterly basis to measure your performance.

“We want to ensure that revenue activities from January to March are in line with your appropriation. When you are giving us your figure, you tell us what the figure was expected for the generation and what you have achieved. Also tell us your expenditure.”

The chairman of the Committee directed that all the agencies under MOFI should produce their annual report for the past 10 years.

“All organisations under MOFI should produce their annual report for the past 10 years and the dividend that ought to have been paid, what ought to have been paid, and what was paid by each of the agencies, and of course evidence of payments,” Faleke said.

The House also berated the Nigerian Agricultural Insurance Corporation for performing far below expectations and urged it to sit up.