Nigeria’s House of Representatives is investigating the Nigeria Investment Promotion Commission (NIPC) over apparent inconsistencies between its budgeted spending and revenue figures.

Lawmakers scrutinized the agency on Thursday, during a hearing focused on monitoring revenue generation by government agencies. The NIPC reportedly spent N3.15 billion in the first quarter of 2024, exceeding the N2.89 billion it collected in revenue during the same period.

Committee Questions Spending Authorization

House Committee Chairman Hon James Faleke raised concerns about the NIPC’s spending practices. He argued that the agency’s budget should reflect its actual revenue collection, not projected annual expenditures. Faleke emphasized the need for clear and transparent government budgeting processes.

The NIPC’s Director of Finance and Administration, Akwada James, defended the agency’s actions. James claimed the spending format was mandated by the budget office. However, the Committee Chairman rejected this explanation, calling the format confusing and lacking transparency.

Further Investigation Ordered

Faleke directed the NIPC to produce a letter from the Ministry of Finance authorizing the additional spending in the first quarter of 2024. The Committee Chairman warned of potential consequences if the authorization could not be verified.

The Committee also investigated the NIPC’s spending in 2023.  While fully funded agencies are expected to remit all their revenue to the government, the NIPC reportedly spent 20% of its internally generated revenue in 2023. James said the agency received authorization from the Ministry of Finance to spend the funds.

The House panel demanded a copy of the authorization letter for the 2023 spending and requested a report from the Fiscal Responsibility Commission (FRC) on its oversight of the NIPC’s finances. The FRC representative at the hearing disclosed that the commission had not received the NIPC’s audited financial statements since 2019, raising concerns about the agency’s financial transparency.

The Committee Chairman directed the Managing Director of the NIPC to appear before the committee on June 5, 2024, with comprehensive financial records, including audited financial statements. The Committee also plans to invite the Accountant General’s office to provide clarity on any discrepancies between the NIPC’s budget and revenue figures.

Response from NIPC and Ministry of Finance Needed

The NIPC has yet to publicly respond to the House Committee’s investigation. The Ministry of Finance has also not commented on whether it authorized the NIPC’s spending beyond its first-quarter revenue collection or the agency’s use of internally generated revenue in 2023.

The House Reps’ probe of the NIPC highlights the importance of transparency and accountability in government spending. The Committee’s investigation underscores concerns about potential weaknesses in budgetary controls and oversight mechanisms. The outcome of the investigation is expected to shed light on the NIPC’s spending practices and potentially lead to recommendations for improving financial management within the agency.

This development comes amid broader efforts by the Nigerian government to strengthen its public financial management systems. The House Committee’s probe serves as a reminder of the need for continuous vigilance in ensuring responsible and transparent use of public funds.

Source: Vanguard