400 MDAs Risk Scrapping, As Senate Issues Approval, Gives Crucial Reason
- Senators have resolved to approve scrapping 400 ministries, departments, and agencies (MDAs) over poor revenue turnover
- The committee said the sole aim of the federal government is to accumulate as much revenue as possible due to the current economic challenge
- It was gathered that some government agencies generated less than N3million despite a N500 million injection by the government
FCT, Abuja - No fewer than 400 Ministries, Departments, and Agencies (MDAs) are at risk of being scrapped as recommended by Stephen Orosanye-led Presidential Committee on rationalization of agencies, Daily Trust reported.
As gathered by Legit.ng, this submission was made known by the Senator Adeola Olamilekan-led Senate committee on finance on Wednesday, September 14.
Source: UGC
During an interface between the committee and the head of MDAs Senator Olamilekan said revenue generation is a top priority to the current administration and it will be the premise in which 106 MDAs will be retained while 400 others will be scrapped.
While speaking at one of the sessions, the director-general of the National Biosafety Management Agency (NBMA), Rufus Ebegba, disclosed that his agency had generated only N2million making it three times lower than the N5million it generated last year.
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Poor revenue turnover unacceptable - Senate committee
Reacting to this development, Senator Olamilekan stated that it was unacceptable for an agency to generate revenue so poorly after the N500million injection by the federal into such an agency.
Senator Olamilekan reiterated that the Senate will go ahead to implement the recommendation of the Orosanye panel.
He said the decision will be taken due to the economic dispensation Nigeria finds itself at the moment.
The Senator said:
“Government needs revenue for impactful budget implementation, particularly in the area of projects execution, and can no longer afford to be dolling money to MDAs without corresponding returns on yearly basis.
“We, in the Senate, are in support of the implementation of the Orosanye-led panel report to save the economy from self–inflicted bleeding."
Excise duties: FG, stakeholders interface over implementation, as ATCON, NATCOM, others decry
In another development, the Nigerian telecommunication industry has been hit with a major setback with the announcement of a new government policy.
Telecom subscribers are now expected to pay 5% excise duties in a bid to raise revenue for the federal government.
It was gathered that the decision was necessary following the recent state of economic downturn in the country.
Source: Legit.ng
