ABUJA – The House of Representatives Committee on Finance has instructed the Infrastructure Concession Regulatory Agency (ICRC), Nigeria Electricity Regulatory Commission (NERC), Nigeria Sugar Development Commission (NSDC), and other relevant agencies to submit detailed reports on their budget performances.
This move is targeted at assessing their adherence to existing financial regulations and laws.
The directive came during a resumed interactive session with key government agencies on Tuesday. The session, convened by the Committee, provided an opportunity for the agencies to present insights into their budget performance and compliance status.
The House Committee directed the Infrastructure Concession Regulatory Commission (ICRC) to provide a comprehensive account of all concessionaires and the fees charged since 2008.
This follows a presentation made by Shehu Sani Danmusa, Director of Infrastructure at the agency, who represented the Director General (DG), Dr. Jobson Ewalefoh.
During the meeting, the Committee Chairman, Rep. James Faleke, along with other members, identified discrepancies in the presentation, particularly concerning the breakdown of revenue and expenditures. They emphasized the need for the ICRC to adhere to standard financial and accounting practices by providing a more detailed and transparent report as required.
In his submission, the Chairman of the Nigerian Electricity Regulatory Commission (NERC), Sunusi Garba, revealed that the agency’s primary source of revenue is derived from the electricity market.
Presenting the agency’s income and expenditure for 2023 and 2024 to the Committee, Garba explained that the law stipulates the preparation of a budget from which the agency draws the necessary funds.
He stated: “The law provides that we prepare a budget and take just enough from the electricity market to fund our operations. This means that the amount we draw from the market depends on the budget we prepare.”
“So in the early days of the commission, when the market was a little bit immature, the commission was taking money from the market and the federal appropriation. But in the last, I think one, two years or even three years, the commission has been 100% dependent on the workings of the market for our revenues”.
However, Chairman of the Committee, Rep. Faleke interjected saying, “You take just enough? What is just enough? So how much do you take? We want to determine your revenue.Yes, so. So when you say just enough, it’s not a figure”.
The NERC Chairman responded by stating that, as a regulatory institution, the NERC is not structured to function as a revenue-generating agency. However, Rep. Faleke disagreed with this assertion, emphasizing that the agency should operate as a self-funded body.
In response, the NERC Chairman affirmed the point, but Faleke pressed further, asking, “Yes. Are there rules? Who is the DFA? Are you the DFA? Where is the DFA? Okay. Are there rules guiding self-funded agencies in terms of deductions, in terms of remittances?”
The Director of Finance and Administration of the agency explained that the law establishing the commission stipulates that 80% of the operating surplus at the end of each year should be transferred to the Consolidated Revenue Fund.
Rep. Faleke, however, raised concerns, stating: “So how do we determine the operating surplus if we don’t know your income? It’s not that I don’t know, but it seems you’re attempting to conceal it. Remember, you mentioned that you take just enough.”
During the presentation, a member of the Committee raised a key concern, stating: ‘So, I mean, that’s my own area of concern. Okay, why don’t we say, if you can give us the figure.
For example, all of us sitting here, we operate in the same market. We are like your customers. But we are more or less directly your customers, kay. We pay through your service providers.’
Following this, the Committee directed the Nigerian Electricity Regulatory Commission (NERC) to provide comprehensive details of its revenues, expenditures, and invoices related to energy purchases and reconciliations to industry stakeholders.”
Similarly, the Committee also picked holes in the expenditures of the National Sugar Development Council (NSDC) over its frivolous spendings on non-essential like foreign travels, office renovations while neglecting core responsibilities to develop the Sugar sector.
In his presentation, the Director General (DG), NSDC, Kamal Bakari in his presentation informed that, the organisation is being funded principally by the Sugar Levy and other revenues.
However, the DFA explained that, other revenues which include; VAT, Withholding Tax and others realized as revenue was remitted to FIRS and receipted which they promised to provide them to the committee.
A member of the Committee also faulted the ougrower support funds spent compared to the production.
Chairman of the Committee, James Faleke noted that, said, the concern of the Committee was the Internally Generated Revenue (IGR) of the Commission.
He noted that, based on the trajectory of the Commission and its activities, Nigeria still has a long way to go compared to Brazil.
According to him, Brazil is cultivating millions of hectares through advanced agricultural techniques and is effectively utilizing all sugar by-products, including the production of fuel for automobiles.
The Committee has therefore instructed the Commission to conduct due diligence and provide comprehensive records.
These records will enable the Committee to assess and determine the Commission’s budget performance accurately.