By Modupe Gbadeyanka
The Nigerian government is to sanction revenue generating agencies that spend the money they generate without remitting same to government.
The move is to help check the excesses of such agencies that are breaching financial regulations that guide their activities.
Anambra State Governor, Dr Willie Obiano, said this while briefing journalists after the meeting of the National Economic Council in Abuja.
Mr Obiano said that the Minister of Finance, Mrs Kemi Adeosun told the Council that some of these agencies been abusing financial regulations for over a decade now but the Ministry was working closely with the Revenue Mobilisation and Fiscal Commission to address the problem, to boost government’s revenue base.
“The Minister informed the Council of certain activities of some Revenue Generating Agencies that amounted to financial abuses of the revenue they generate which would have been remitted to the Federation Account, but diverted through several undue and illegal means. The Ministry of Finance and the Revenue Mobilisation Allocation and Fiscal Commission RMFAC are working together to rein in these abuses as this revenue agencies raise as much as 1.5 trillion Naira yearly, and spend almost 90% of it on recurrent expenditure in clear violation of due process and the constitution,” he explained.
The Governor further explained ways in which the defaulting agencies have been flouting financial laws.
“These financial abuses include paying salaries above specifications of the RMAFC, converting official cars to personal ownership under 48 hours of purchase, inappropriate and arbitrary monetisation of medical allowances, undue and excessive overseas travels, lavish training allowances and conference spending, excessive and personal loan approvals, including unapproved mortgages among others,” he stated.
more recommended stories
Asian Shares Plummet After Trump’s Comments on US, China Trade Talks
By Investors Hub Asian stocks closed.
European Equities Fall as Oil Price Drop
By Investors Hub European stocks have.
US Stocks Open on Disappointing Earnings, Trade Concerns
By Investors Hub The major U.S..
Janngo Gets €1m Seed Funding to Grow African SMEs
By Modupe Gbadeyanka Janngo has announced.