Senate takes action against CBN, NNPCL, 40 MDAs for alleged revenue remittance violations

The Senate has initiated action to compel the Central Bank of Nigeria (CBN), the Nigerian National Petroleum Company Limited (NNPCL) and about 40 other Ministries, Departments and Agencies (MDAs) to appear before the Finance Committee over alleged failure to account for government revenues and comply with statutory remittance obligations.

The decision follows a motion sponsored on Wednesday by the Chairman of the Senate Finance Committee, Senator Sani Musa, who accused several government agencies of thwarting the oversight function of the National Assembly by repeatedly ignoring invitations to appear before the committee.

Musa said the committee was carrying out its constitutional responsibility to scrutinize the financial activities of government institutions, including internally generated revenues, operational surpluses and remittances into the Consolidated Revenue Fund.

“As part of our constitutional mandate under Articles 88 and 89 of the Constitution, the Senate Finance Committee conducts periodic investigative hearings to examine the financial operations of State-Owned Enterprises and Ministries, Departments and Agencies,” he said.

He explained that the ongoing exercise is intended to assess compliance with the Fiscal Responsibility Act, Finance Act, and other financial regulations governing public institutions.

Also read: FG launches N2m loan scheme for 500,000 young entrepreneurs

However, the senator lamented that some institutions refused to honor invitations or ignored requests to provide relevant financial records.

“What is more concerning is that some parties have taken the position that they are not obliged to appear before the committee or submit the requested information, despite the clear constitutional and statutory authority given to the National Assembly to exercise oversight over the finances and administration of public institutions,” Musa said.

He warned that continued refusal by public institutions to cooperate with legislative bodies could weaken accountability mechanisms and erode transparency in the management of public funds.

“This development poses a serious challenge to the effective exercise of the committee’s oversight responsibilities and undermines the Senate’s constitutional authority. If left unchecked, it could erode legislative oversight, weaken fiscal accountability and reduce transparency in the management of public resources.”

Musa further alleged that some revenue generating institutions violated financial laws by withholding government funds normally deposited into Federation accounts.

“These are institutions that collect revenue for the government, and the Fiscal Responsibility Act and Finance Act 2022 direct that all Ministries, Departments and Agencies must comply with financial regulations on remittances.

“Most of them are not complying. Instead of sending what is required by law, they are getting a larger percentage of their income and sending only a small portion. We need to call them to give orders.”

According to him, initial findings show that several institutions have withheld government income since 2020.

“We will ask them to come for examination so that the Fiscal Responsibility Commission can carry out reconciliation, after that we will ask them to return the money as soon as possible. Some have been holding these funds since 2020.”

Speaking during the debate, Senate President Godswill Akpabio rejected claims by some agencies that the Senate committee did not have the authority to summon them to conduct investigations.

“What we’re talking about is they’re saying the Senate Committee doesn’t have the authority to invite them. But the Senate has the authority.

“The National Assembly has the authority. We have the authority enshrined in the Constitution to invite them.”

Akpabio directed the Finance Committee to present a substantive motion empowering the Senate to compel institutions that fail to honor the invitation.

“Come with a substantive motion. One of the prayers is to compel them to appear before the National Assembly through your committee.”

He also warned that any agency that continues to ignore the legislature will face severe constitutional sanctions.

“If they ultimately don’t show up, we know the right action to take.”

Among the agencies listed to appear before the Senate are the CBN, NNPCL, Federal Airports Authority of Nigeria (FAAN), Nigerian Civil Aviation Authority (NCAA), Nigerian Maritime Administration and Safety Agency (NIMASA), Office of the Accountant General of the Federation, Nigerian Railways, Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), Nigerian Electricity Regulatory Commission (NERC) and Transmission Company of Nigeria (TCN).

Others include Federal Mortgage Bank of Nigeria, Nigerian Agricultural Insurance Company, Export-Import Bank of Nigeria, Export Promotion Council of Nigeria, NNPCL Retail Limited, Nigerian Commodity Exchange, Nigerian Ports Authority, Nigerian Standards Organization, Nigerian Upstream Petroleum Regulatory Commission, Nigerian Midstream and Lower Petroleum Regulatory Authority, Joint Admissions and Matriculation Board, National Examinations Council, National Inland Waters Authority, Nigerian Deposit Insurance Company, Nigerian Communications Satellite Limited, Nigerian Export Processing Zone Authority, Shippers’ Council Nigeria, Nigerian Meteorological Agency, National Insurance Commission, Nigerian Social Insurance Trust Fund and National Oil Spill Detection and Response Agency.

The motion was later adopted by voice vote, paving the way for the issuance of formal subpoenas to the affected institutions as the Senate intensifies efforts to enforce fiscal discipline, strengthen legislative oversight and ensure accountability in the management of public resources.