…You can’t deliver with your estimates, AuGF told
….NEITI defends N3.621billion estimates
By Lubem Gena, Abuja
The Office of the Auditor General of the Federation and that of the Nigerian Extractive Industry Transparency Initiative (NEITI) has appeared the joint Public Accounts Committees of the Senate and House of Representatives to defend their 2024 budget estimates.
The joint committee is co-chaired by Senator Ahmed Wadada Aliyu and Hon. Bamidele Salam.
Addressing the committee, the Auditor General of the Federation, Mr. Shaakaa Kanyitor Chira who appeared with his lieutenants said the 2024 budget estimates were tailored with the aim of supporting the federal government’s efforts towards establishing a strong foundation for a diversified economy, investing in critical physical, financial, digital innovation infrastructure, building a solid framework and enhancing capacities to strengthen security amongst other noble objectives.
“To ensure quality audit, Supreme Audit institution needs well qualified and adequately remunerated staff who are encouraged to continuously improve especially in the area of expertise through a combination of training and exposure to modern technology”, he stated.
While talking to the figures, he informed the parliamentarians that in 2023 appropriation, personnel cost gulped N2,936,324.970; overhead stood at N2,113,556,825; re-current got N5,049,381,789 while the capital expenditure received N62,701,528 totaling N5,112,583,319.
He explained that the 2024 budget estimates suffered a downward slope while it underwent scrutiny in the Budget Office of the Federation.
While the office submitted the sum of N3,932,351,842; N10,818,387,541; N14,750,739,383; N3,378,701,070 for personnel, overhead, re-current and capital expenditure respectively, the budget office approved N2,641,865,571; N7,933,985,589 and N220,310,902 for overhead, recurrent and capital proposals leaving it with a deficit of N9,975,143,962.
During the question and answer session, members of the committee requested for specific explanations in areas they considered as grey including those of hinging on the geo-political balance of the upcoming recruitment of more staff, purchase of 1,500 flash drives as well as the $500,000 received from the World Bank which the chairman asked him to fully account for.
“Our present staff strength is 1,370. For the past years, 2017-2023, 256 staff have retired from the office of the Auditor General of the federation. As it is now, we need to employ 247 staff”, Mr. Chira stated.
He however explained that the Head of Service is yet to give a green light to that effect emphasizing that the distribution of the positions is always done in a manner that reflects the federal character.
A member of the committee, Hon. Isiaka Nasiru Adegboyega in his contribution said: “most of the specific questions have been asked. But quite honestly, I am just a bit concerned that with the totality of what we are seen here, I am not so sure that what we are having and all of these performance will be able to get this body to be able to deliver on its mandate that it is meant to deliver.
“Public accounts committee relies on the report and all that comes from audit to do its work. My advice and recommendation is that, I think this team needs to go back home and do a much more thorough job and look at all these things.
“We are in the age of technology. There are so many MDAs that this body needs to cover within a given time. I am not so convinced that I have seen enough vibes here that will make me to be convinced that this body can actually do all this work so very well.”
Ruling on the motion moved by Hon. Ojotu Ojome which received voice affirmation, Rep. Salam said, “the contribution is that we should receive the budget for further scrutiny. So, Auditor-General, you are to supply additional information while the committee will appropriately work on your budget for necessary appropriation”.
Meanwhile, the Executive Secretary of the Nigerian Extractive Industry Transparency Initiative (NEITI), Dr. Ogbonnaya Orji while talking to his document presented before the committee said the N1.3billion 2023 budget have witnessed implementation even as all appropriations meant for the agency were not released in the last quarter of the concerned year.
“…Our budget performance for 2023, we have an overhead that we have so far recorded over 71%. The capital performance is 54 percent and on our personnel, we have recorded 66% and capital development fund recorded 54.06%.
“…On personnel cost, we have an appropriation of N1.3 billion. N917.286 million were released and all of them spent. We have a balance of N471.5million outstanding, giving a performance of 66.05%. As distinguished Senators and Honourable members are aware, the personnel is controlled by the Office of the Accountant General of the Federation. It is not under our purview”.
He informed the committee that for 2024, while the capital have N1.3 billion, personnel N1.1billion while the total envelope given to the agency is N3.621billion.
“Immediately this administration came, the method of release of capital changed. They call it bottom up. You do the job, you finish, you submit and wait for payment. Most of our payments are hanging. So, until those payments are made. The capital is not with us, the overhead is not with us. The last overhead we got was in September. But then we have to run our operations fully in October, November and we are in December. That is why it will be very strange if where we could get any money that will be left with us because any money that comes in, there are already activities”, Dr. Ogbonnaya added.
Dr. Ogbonnaya was consequently asked to present evidence-based spending by his agency hence emphasized that all the money accessed by NEITI was withdrawn and spent in a transparent manner.
