N3.15bn Non-Remittance: House Committee Grills NIPC Over Financial Discrepancies

The House of Representatives Committee on Finance has questioned the Nigeria Investment Promotion Commission (NIPC) over the discrepancy between its N3.15 billion expenditure and N2.89 billion revenue for the first quarter of 2024.

This was revealed as the agency appeared before the Committee in the ongoing probe, into revenue by Ministries, Departments and Agencies, MDAs of the Federal Government at the National Assembly on Thursday.

The Director, Finance and Administration of the agency, Akwada James, told the Committee that the amount, was projected expenditure for the year.

“It is like that, because, our income does not come at a time. So we have done committed spending in the budget for the year,” James said.

Chairman of the Committee, Rep James Faleke wondered how the agency could budget for what it had not done.

“The revenue collection for first quarter, 2024 is N2.89bn and your expenditure for that same period is N3.15bn. If you are giving us revenue for a quarter, the expenditure for that quarter should be stated not the whole. How can you give me expenditure for the whole year,” the Committee Chairman queried.

James said this was a format given to them by the budget office.

“No sir, we don’t like that format here. It’s confusing. How can you tell me, you generated N2.8 billion and on record you spent N3.1 billion and we ask where did you get the money and who gave you the authority to spend the above budget.”

The Committee also queried the agency for spending 20 percent of his revenue in 2023.

“A fully funded agency is supposed to remit their revenue 100 percent. So you spent money illegally. On what authority did you approve the usage of that money,” he further queried.

James said it was based on the budget and their engagement with Ministry of Finance, pointing that the agency was advised through a letter from the budget office.

“I would like to see the letter that authorized you to spend that 20 percent else we would charge all of you, personally.

“We would write and ask that the money spent, be deducted from your salaries until it is fully refunded. I need that letter on Monday.

“Fiscal Responsibility Commission, FRC, I need a report of your sessions with NIPC and why they spent 20 percent of their IGR, and there has not been any query from your agency,” Faleke stressed.

Chairman of the Fiscal Responsibility Commission, Victor Mururako, represented by Mrs Victoria Adizou-Angakuru in her submission, noted that they had not received NIPC’s audited Financial Statements, since 2019.

Faleke, however, directed that the Managing Director of the Commission appears before the committee on June 5, 2024 with their comprehensive records.

“The best approach is to invite the accountant general. In view of the contradictions, we would keep our documents and let the Accountant General come and tell us what is responsible for this discrepancies for a funded agency, like the NIPC,” Faleke said.