By Ohuakanwa Chibuzo
Minister of Finance, Wale Edun, announced yesterday that the Federal Government’s accumulated N22.7 trillion Ways and Means debt will undergo a comprehensive audit. The measure, a financial tool utilized since 1999 by successive federal administrations to address urgent financial needs, including salary payments, may face restrictions or cessation, according to the Coordinating Minister for the Economy.
Edun made the disclosure at the ongoing Public Wealth Management Conference organized by the Ministry of Finance Incorporated (MoFI).
Simultaneously, the Senate resolved to probe the utilization of the N22.7 trillion borrowed from the Central Bank by the Muhammadu Buhari administration through Ways and Means, alongside other interventions such as the N10 trillion Anchors Borrowers Programme.
An ad-hoc committee was formed to investigate the allocation and expenditure of the N22.7 trillion, particularly scrutinizing how the initially approved sum of N22.7 trillion ballooned to N30 trillion by May 2023.
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Edun emphasized the need for increased oil revenue and urged the Nigerian National Petroleum Company Limited (NNPCL) to enhance production while reducing costs. He also highlighted ongoing efforts to bolster revenue collection from government-owned enterprises and streamline tax collection through digitization and technology.
The minister reiterated the government’s commitment to reform fiscal policies and tax systems, including the introduction of an emergency intervention bill aimed at rationalizing taxes and enhancing revenue collection from both corporate entities and individuals.
On the expenditure front, measures are being implemented to minimize inefficiencies, eliminate duplications, and prevent leakages in public spending. This includes addressing issues such as duty waivers, tax incentives, and contract expenditures to ensure optimal utilization of government funds.
In a related development, the Senate expressed concerns about the inflationary impact of Ways and Means on the economy. Its decision to investigate the disbursement and utilization of the N22.7 trillion followed the adoption of the report and recommendations of the Joint Senate Committee on Banking, Insurance and other Financial Institutions, Finance, National Planning, Agriculture, and Appropriation on the state of the economy and the declining value of the Naira.
Chief Whip of the Senate, Ali Ndume, criticized the lack of detailed expenditure presentation to the Ninth National Assembly before approval, describing it as illegal. Deputy Senate President Barau Jibrin also affirmed the absence of detailed information during the approval process, emphasizing the emergency nature of the request as the reason for the oversight.