MDAs that fail accountability test risk zero budget allocation

The Nigerian Senate has issued a strong warning to federal ministries, departments, and agencies (MDAs), threatening to withhold their 2025 budget allocations if they fail to provide comprehensive expenditure reports for 2024.  This decision follows widespread discrepancies in financial records and concerns over inefficient revenue management. During a session led by the Senate Committee on Finance, chaired by Senator Sani Musa, lawmakers scrutinized the state of financial accountability across MDAs.  The committee flagged inconsistencies in revenue reports, poor budget performance, and delays in fund disbursements. Agencies such as the Nigerian National Petroleum Company Limited (NNPCL) and others were highlighted for discrepancies in remittances and dividends. The committee also criticized the centralized payment system managed by the Accountant General’s office, attributing delays in project funding and execution to bureaucratic bottlenecks.  Lawmakers reported that contractors were allegedly pressured to pay unofficial fees to expedite payments, further eroding public trust. ALSO READ: The Real Persons Living Fake Good Life In her defence, the Accountant General explained that the centralized system was designed to reduce inefficiencies and prevent unspent funds from being rolled over.  However, senators argued for more autonomy for MDAs while ensuring oversight to prevent misuse. The Senate plans to summon additional stakeholders, including the Revenue Mobilization Allocation and Fiscal Commission (RMAFC) and the Nigerian Extractive Industries Transparency Initiative (NEITI), for a joint review of financial irregularities.  Deliberations on whether to reform or abolish the centralized payment system are also expected to address delays and inefficiencies in budget implementation.

Federal Government Exits Tertiary Institutions from IPPIS, Shuts Down Platform

The Federal Government has officially taken Federal Tertiary Institutions (FTIs) off the Integrated Personnel and Payroll Information System (IPPIS), resulting in the platform’s shutdown for these institutions.  According to the Office of the Accountant General of the Federation (OAGF), this change aligns with a recent directive to transition FTIs to an alternative payroll management system. Starting this month, salaries for staff in these institutions will be processed via the Government Integrated Financial Management Information System (GIFMIS), requiring institutions to submit payroll data in Excel format for verification.  The OAGF has assured workers that there’s no need to alter their salary account details as no mandate for account changes has been issued.  The office emphasized the focus on maintaining workers’ welfare, encouraging financial institutions to ensure robust handling of salary-related accounts. Employees who choose to change their salary accounts are advised to use the official channels provided by the OAGF for a seamless transition.

Accountant General Refutes Payment Claims by Ministry, Citing Illegality in Private Account Transaction

The Office of the Accountant General of the Federation has refuted payment claims made by the Minister of Humanitarian Affairs and Poverty Alleviation, Dr. Betta Edu, insisting that payment into private account was illegal and in contravention of civil service procedures. The OAGF said that transaction was illegal and emphasizes adherence to established procedures for financial transactions after Ministry’s request for payment clarification. A statement released by the Office of the Accountant General of the Federation (OAGF) and signed by Bawa Mokwa, Director (Press) addressed reports regarding a request made by the Ministry of Humanitarian Affairs and Poverty Alleviation for payment disbursement to vulnerable groups in certain states. The AGF, Dr. Oluwatoyin Madein, clarified the operational protocols of the OAGF in the wake of media speculations. Dr. Madein categorically stated that the OAGF does not execute payments on behalf of Ministries, Departments, and Agencies (MDAs) for the execution of projects and programs. Instead, allocations are disbursed to self-accounting MDAs in alignment with budgetary stipulations, and these entities are solely responsible for the execution and financial disbursement of their respective projects. The AGF emphasized that while the Ministry in question did forward a payment request, the OAGF did not facilitate the transaction. Instead, the Ministry was duly advised on the proper procedures to adhere to when effecting such payments, ensuring compliance with established financial protocols. Clarifying the payment procedure, Dr. Madein highlighted that disbursements are typically processed by the relevant Ministries as independent entities, emphasizing that funds are not to be transferred en masse to individual accounts under the guise of a project’s accountant. She stressed the necessity of routing such payments directly to verified beneficiaries through their authenticated bank accounts. Expressing a steadfast commitment to maintaining transparency and accountability in the management of public finances, Dr. Madein urged MDAs to consistently uphold requisite measures in conducting financial transactions.

Staff Capacity Building: OAGF pledges collaboration with ASCON

The Office of the Accountant General of the Federation (OAGF) is to work with the Administrative Staff College of Nigeria (ASCON) to provide the requisite capacity development training for treasury staff.  The Accountant General of the Federation, Dr. Oluwatoyin Madein dropped the hint when the Director-General of the Administrative Staff College of Nigeria (ASCON), Mrs. Cecelia Gayya led a delegation from the institution to her office Tuesday in Abuja.  According to a statement by Director (Press) Bawa Mokwa, Dr. Madein said capacity development is essential for effective performance, assuring that Office will sustain a deeper collaboration with ASCON in that regard.    She noted that, “Challenges abound in every position one occupies and every task has its own demands. The complexities will keep increasing and the ability to overcome and achieve the desired result will definitely rely more on the exposure, in terms of skills and knowledge of global trends”.   While reaffirming that staff training is a cardinal policy of her office, the AGF called on the management of ASCON to include Treasury staff in its capacity building programmes on any area within the civil or public service.  She applauded the management of ASCON for considering the Treasury Academy, in Orozo, Abuja as its study Centre, adding that the OAGF will provide all the necessary assistance to bring the idea to fruition.  On her appointment as the first female AGF, Dr. Madein acknowledged that the office comes with much expectation from the government and Nigerians, promising that she will put in her utmost effort to discharge the responsibility creditably.  In her remarks, the Director General of ASCON, Mrs Cecelia Gayya congratulated Dr. Madein on her appointment as the first female AGF and expressed optimism that she has the capacity and experience to succeed in the office.    Mrs. Gayya confirmed that ASCON was willing to partner with the OAGF on staff training and other areas as may be required of it, adding that the institute was working towards making the Treasury Academy in Abuja one of its study Centers.  She said the institute had commenced the training of Chief Executives of parastatals, agencies and commissions, and that the AGF will be included in the next session of the training which will commence in September.

Technical glitch delaying June salary, OAGF tells civil servants

The Office of the Accountant-General of the Federation (OAGF) has said that delay in the payment of June salaries to some civil servants is due to some technical glitches.   Director of Press, OAGF, Mr Bawa Mokwa, who made this known Wednesday in Abuja said, the delay was caused by technical challenges with the Government Integrated Financial Management System (GIFMIS), one of the salary platforms. Mokwa, however, said the office is making efforts to resolve the challenge. “As we speak, the Directors and the consultant in charge of the platforms are in a crucial meeting, working round the clock to resolve the problem. “Anytime from now, the salaries will start dropping,” he explained. Many civil servants have not been paid their June salaries, making some unable to enjoy the recent Eid-el-Kabir celebrations.