House of Representatives Explains Why Monies Which Ought to Accrue to Nigerian Government Are Being Lost

The House of Representatives stated that the loss of revenues that should flow into the Nigerian government's coffers is because of weak audit and accounting systems. According to Bamidele Salam, Chairman of the House Public Accounts Committee (PAC), these deficiencies are creating loopholes that fuel corruption, undermining government efforts to generate revenue needed for national development. Speaking during a budget defense session with the Office of the Auditor General for the Federation (OAuGF), Salam emphasized that addressing these structural weaknesses is key to improving financial management and reducing reliance on borrowing.

Salam explained that ineffective auditing practices allow major ministries, departments, and agencies (MDAs) to operate without adequate oversight, leading to impunity and financial mismanagement. He noted that several major agencies have not been thoroughly audited in recent years, creating a risk of unchecked corruption and revenue leakages. According to the lawmaker, poor financial accountability in these agencies deprives the government of substantial funds that could be used to boost infrastructure, social services, and other development programs. Strengthening audit mechanisms, he argued, would help block revenue gaps and enhance budgetary performance across government institutions.

Highlighting the Auditor General’s critical role, Salam urged the OAuGF to expand its audit coverage, prioritizing agencies with significant revenue-generating potential. He warned that failure to conduct proper audits not only undermines fiscal discipline but also signals a lack of scrutiny, which emboldens corrupt practices. Salam further charged the Auditor General’s office to ensure timely submission of audit reports to the National Assembly to promote transparency and accountability. Delays in reporting, he said, hinder the legislative process of reviewing government finances and implementing corrective measures.

Responding to the lawmakers’ concerns, the Auditor General for the Federation, Shaakaa Kanyitor Chira, acknowledged that his office faces severe funding constraints and a shortage of staff, which contribute to delays in preparing and submitting annual audit reports. Chira stated that limited resources have significantly hampered their operations, leading to backlogs in auditing government accounts. However, he expressed his office’s commitment to overcoming these challenges, noting plans to submit the 2022 audit report by March. The 2022 report will focus on compliance issues and domestic financial management, providing insights into areas of non-compliance that require urgent attention.

The interaction between the House Public Accounts Committee and the Auditor General underscored the pressing need for reforms to strengthen Nigeria’s financial oversight framework. Effective auditing and accounting systems are foundational to curbing corruption, enhancing revenue generation, and improving fiscal stability. Without these reforms, public resources will continue to be siphoned away through inefficiency and fraud, depriving citizens of the benefits of robust public investments. Lawmakers reaffirmed their commitment to supporting initiatives that improve financial transparency and ensure that government agencies are held accountable for their financial practices.