Nigeria Reps Summons Finance Minister, AGF Over N75bn Debt

• The House Public Accounts Committee has summoned Finance Minister Taiwo Oyedele and Accountant-General Shamseldeen Ogunjimi.
• The summons concerns an outstanding N75 billion debt reportedly borrowed from the Universal Basic Education Commission.
• Officials are required to provide a repayment schedule and assurances for the return of the funds by October 22.
• The committee is concerned about undocumented inter-agency borrowings and revenue deductions that lack clear terms or regulatory frameworks.
• Lawmakers fear these practices undermine agencies' operations and public funds accountability in Nigeria.

The committee firmly asserted that public funds cannot be transferred between government institutions to cover financial obligations without explicit terms governing such transactions, emphasizing that each borrowing must have attached terms and conditions.

The Nigerian House of Representatives has issued a summons to the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, alongside the Accountant-General of the Federation, Shamseldeen Ogunjimi. This directive from the House Public Accounts Committee (HPAC) addresses an outstanding N75 billion reportedly borrowed from the Universal Basic Education Commission (UBEC).

The two senior officials are mandated to appear before the committee on Thursday, October 22. Their appearance is required to present a definitive repayment schedule for the funds and to offer concrete assurances regarding the timeline for the money's return. This action follows a hearing held in Abuja on Friday, where the committee, under the chairmanship of its Deputy Chairman, Jeremiah Umaru, expressed significant concerns over the management of public finances.

The HPAC's intervention stems from a broader apprehension regarding the practice of withdrawing and borrowing funds from government agencies without clear repayment arrangements, prior notification, or established guidelines. The committee firmly asserted that public funds cannot be transferred between government institutions to cover financial obligations without explicit terms governing such transactions, emphasizing that each borrowing must have attached terms and conditions.

Responding on behalf of the Accountant-General, Deputy Director Ezeoke Christopher acknowledged the borrowings, characterizing them as internal arrangements designed to address funding shortfalls and meet statutory obligations. Christopher further explained that these arrangements were partly necessitated by the substantial monthly personnel costs, which reportedly exceed N1 trillion. The Accountant-General’s office also indicated that approximately N90 billion had already been refunded, though more than N70 billion remains outstanding. However, these explanations, including those provided by Mohammed Sanusi Danjuma, the Permanent Secretary (Special Duties) in the Ministry of Finance, failed to satisfy the committee, which insisted on the personal appearance of the principal officials to account for the outstanding amount and provide a repayment timetable.

Lawmakers voiced profound concern that the diversion of funds intended for basic education could severely undermine UBEC’s critical interventions across the country. Such actions risk negative consequences for states and federal constituencies that rely on the commission’s programs. This situation highlights a critical challenge in Nigeria's inter-agency borrowing rules and the broader framework of public funds accountability.

Beyond the UBEC debt, the committee also scrutinized a reported practice of deducting up to 50 percent of some government agencies’ revenues on a monthly or quarterly basis, often without a clearly established regulatory framework. Members of the committee highlighted that these deductions have left several agencies struggling to meet essential operational costs and salary obligations, effectively hindering their ability to function. The committee maintained that inter-agency financial arrangements must not be permitted to weaken the operational capacity of institutions whose statutory responsibilities require predictable funding.

Lawyers and compliance officers advising government entities should note the increased parliamentary scrutiny on inter-agency financial transactions, particularly concerning undocumented borrowings and revenue deductions. This signals a potential for stricter regulatory frameworks and enforcement regarding public fund management and accountability, requiring review of existing inter-agency agreements and practices to mitigate compliance risks.

Source: Original reporting via Punch Newspapers