FG recovers ₦57 billion from ₦5.2 trillion debt owed by MDAs
In a significant breakthrough, the Federal Government has reclaimed a staggering ₦57 billion out of the ₦5.2 trillion liabilities owed by various Ministries, Departments, and Agencies (MDAs). This remarkable feat marks a pivotal moment in the government’s relentless pursuit of revenue recovery and fiscal responsibility.
The recovery drive, spearheaded by the Federal Inland Revenue Service (FIRS), not only targeted outstanding debts owed to the government but also sought refunds from companies that failed to deliver on projects despite receiving payment. This multi-faceted approach underscores the government’s commitment to fiscal accountability and transparency.
According to a statement issued by the Permanent Secretary, Special Duties, Federal Ministry of Finance, Okokon Udo, the discovery of these debts was made possible through meticulous data collation efforts. Over 5,000 debtors spanning across 93 MDAs nationwide were identified, shedding light on the magnitude of the financial challenge.
Addressing stakeholders at a sensitization workshop in Enugu, Udo emphasized the importance of the debt recovery initiative, codenamed Project Lighthouse. This program, designed to streamline debt recovery processes and enhance information sharing among government agencies, played a pivotal role in uncovering the monumental debts owed to the FG.
Udo highlighted the critical role of Project Lighthouse in consolidating relevant economic and financial data, previously scattered across various government entities. By leveraging innovative tools such as the Debt Analytics and Reporting Application, the ministry successfully aggregated debts amounting to approximately ₦5.2 trillion, a staggering revelation that underscores the magnitude of the financial challenge.
One of the key findings of Project Lighthouse was the alarming trend of defaulting companies and individuals continuing to receive payments through government platforms like the Government Integrated Financial Management Information System (GIFMIS) and Treasury Single Account (TSA). This lack of transparency not only perpetuated revenue leakages but also undermined the government’s fiscal integrity.
A comprehensive breakdown of the recovered debts revealed a diverse range of culprits, including corporate entities and individuals with unpaid credit facilities in institutions such as the Bank of Industry (BOI) and Bank of Agriculture (BOA). Additionally, significant debts arising from judgment debt in favor of the government and outstanding liabilities owed to the Pension Transitional Arrangement Directorate (PTAD) by insurance companies were successfully retrieved.
The successful recovery of ₦57 billion represents a significant milestone in the government’s ongoing efforts to strengthen fiscal discipline and ensure the efficient utilization of public resources. As the Federal Government continues to intensify its revenue recovery initiatives, stakeholders remain optimistic about the prospect of further reclaiming outstanding debts and fostering a culture of financial accountability across all sectors.
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