It also ordered for deregistration of all subsidiaries to the Nigeria Postal Service being irregular and illegal identities and called for investigation of the N10bn released by the Ministry of Finance for the proposed NIPOST restructuring and recapitalization.
The upper legislative chamber also seeks stiff punishments including jail terms for violators of its finance laws.
The Senate made this known on Wednesday during the passage of the 2024 – 2026 Medium Term Expenditure Framework and Fiscal Strategy Paper.
The passage of the executive communication followed its consideration and adoption of the report of the Adhoc Committee set up for the purpose.
The passage of the MTEF/FSP followed the consideration and adoption of the Senate Joint Committees on Finance, Appropriations, National Planning and Economic Affairs and Local and Foreign Debts on the 2024 – 2026 Medium Term Expenditure Framework and Fiscal Strategy Paper.
The report was presented by the Chairman Senate Committee on Finance and Chairman of the Joint Committee, Senator Sani Musa (APC – Niger East).
It approved the new borrowings of N7.8tn, pegs benchmark oil price for 2024 at $73.96 and oil production volume per day at 1.78 million barrels.
Other parameters approved are a GDP growth rate of 3.76%, Inflation rate of 21.40%, a suggested benchmark exchange rate of N700 to 1 dollar and a projected budget deficit of N9.04tn.
The report added, “FGN recommended spending N26trillion with N16.9trillion as retained revenue.
“N9tn budget deficit ( including GOEs), N7.8tn in new borrowings ( including borrowing from foreign and domestic sources).
“N1.3tn worth of statutory transfers, an estimated N8.2tn in debt service, N234.6bn in the sinking fund, N1.27tn in pension, gratuity and retiree benefits.
“Total recurrent (non-debt) of N10.2tn and N4.49tn as capital expenditure .”
That the Federal Government’s target-setting approach and its determination to enhance the major revenue-generating agencies’ collection efficiency will support the fiscal deficit estimate of N9tn (including GOEs) is noted and hereby approved.
“That the Federal Government should continue to enforce the implementation of the Performance Management Framework for GOEs by ensuring that they operate in a more fiscally responsible manner while reviewing their operational efficiencies and declared costs-to-income ratios;
“That the N7.8 trillion in new borrowings (both domestic and foreign) be supported as well, given the country’s current effective debt management strategy, which has moderated borrowing costs and decreased the amount of short-term debt in the portfolio and refinancing risk.
“The National Assembly began the process of amending the Fiscal Responsibility Act (FRA, 2007) to enhance the agencies’ ability to enforce fiscal responsibility and impose sanctions on erring Corporations.
“Specifically, about Sections 21 (1) and 22 (1)(2); The National Assembly Standing Committees take prompt action to review the laws governing the activities of all revenue-generating
agencies under their purview to identify specific sections or clauses that need to be amended to plug waste and increase the government’s capacity to generate revenue.
“That the Federal Government Agencies ensure deployment of ICT in the collection of all revenues by MDAs including stamp duty collection activities to block leakages.
“That the Budget Office of the Federation and the Ministry of Finance Budget, and National Planning re-evaluate the underlying assumptions for all Federal Government agencies’ income targets to confirm the veracity of those assumptions and the effects;
“The Federal Government should continuously assess the qualifications and performance of agency heads to guarantee that the government’s total income target as stated in the MTEF/FSP and the yearly budgets are consistently met with adequate sanction where necessary.
“That all Ministries, Departments, and Agencies pay for services provided by other government agencies on time and in full unless it is determined that the beneficiary agencies are statutorily exempt from such payments.
“That Ministry of Finance Incorporated examines the activities of all Government Agencies currently operating under the partial and full commercialization arrangement allowing them to compete with their
peers in the private sector thereby making a more meaningful contribution to the Federal Government’s revenue generation drive.
“That the Bureau of Public Enterprises Act be amended to remove the clause(s) that create conflict between BPE and MOFI where MOFI should be the authorized custodian of all Federal government assets, both liquid and physical.
“That the Nigeria National Petroleum Corporation Limited should work towards reducing its cost of production and operational costs with the view of increasing available government revenue.”
