A startling revelation has emerged from the 2020 audit report, exposing the illegal withdrawal of a staggering N13.95 trillion by various Ministries, Departments, and Agencies (MDAs) of the Nigerian federal government. The audit, conducted on the Bank Balances from the Consolidated Financial Statement, identified twenty-eight MDAs involved in these illicit transactions.
These unauthorized withdrawals, in violation of the Financial Regulations 2009, which explicitly prohibits overdrawn government bank accounts, raise serious concerns about fiscal accountability and regulatory oversight. Among the defaulting MDAs, the Federal Ministry of Environment stands out for overdrawn amounts totaling N350.85 billion, followed closely by the Nigeria Stored Products Research Institute and the Public Complaints Commission.
Auditor-General of the Federation, Shaakaa Chira, attributed these irregularities to weaknesses in the internal control system surrounding the consolidation process at the Office of Accountant-General of the Federation. The lack of approvals or explanations for the overdraws further compounds the issue, exposing the federal government to unnecessary interest payments and financial risks.
A deeper examination through the Government Integrated Financial Management System (GIFMIS) revealed that some withdrawals were channeled towards personnel and overhead financing, as well as bank charges for the usage of the Central Bank of Nigeria (CBN) gateway. This undermines the essence of the Treasury Single Account (TSA) and underscores the need for systemic reforms.
In response to these discrepancies, the Auditor-General recommended budgetary provisions to cover charges by service providers and called for stringent measures, including sanctions outlined in the Financial Regulations, to hold accountable those responsible for irregular payments. However, Development Expert Adenike Aloba has emphasized the imperative of empowering the auditor-general beyond mere recommendations to effectively combat financial misappropriations and strengthen the country’s financial regulatory framework.
Aloba’s call for the expansion of the auditor-general’s powers underscores the urgent need for legislative reforms, such as the Nigeria Audit Service Bill 2022, to enhance transparency, accountability, and integrity in public financial management. As Nigeria confronts these systemic challenges, bolstering the oversight mechanisms and institutional capacity of auditors emerges as a critical imperative for safeguarding public funds and promoting good governance.
