By Christiana Ekpa
The House of Representatives Committee on Finance has queried the National Investment Promotion Commission (NIPC) for recording an expenditure of N3.15 billion in the first quarter of 2024, despite submitting a revenue of N2.89 billion.
The agency appeared before the committee as part of the ongoing probe into revenue monitoring by federal government ministries, departments, and agencies.
Committee Chairman, Hon. James Faleke, expressed concern over the agency’s budgeting and spending practices, particularly the projection of expenditure for the entire year without corresponding revenue. He also queried the agency’s spending of 20% of its revenue in 2023 without proper authorization. The committee demanded a letter authorizing the expenditure and threatened to deduct the spent amount from the agency’s salaries if the letter is not produced.
The Fiscal Responsibility Commission (FRC) was also directed to provide a report on its sessions with NIPC and explain why it failed to query the agency’s excessive spending. The committee has invited the Managing Director of NIPC to appear before it on June 5, 2024, with comprehensive records, and also plans to invite the Accountant General to clarify discrepancies in the agency’s financial records.
The Director, Finance and Administration of the agency, Akwada James, told the committee the amount was projected expenditure for the year.
“Why it is that is because our income does not come at a time. So we have done committed spending in the budget for the year,” James said.
Faleke wondered how the agency could budget for what it had not done yet.
“The revenue collection for first quarter 2024 is 2.89b and your expenditure for that same period is 3.15b. If you are giving us revenue for a quarter, the expenditure for that quarter should be stated not the whole. How can you give me expenditure for the whole year?” the Committee Chairman queried.
James said this was a format given to them by the budget office.
“No sir, we don’t like that format here. It’s confusing. How can you tell me generated N2.8 billion and on record you spent N3.1 billion and we ask where did you get the money and who gave you the authority to spend above budget,” Faleke said.
