By Gloria Ikibah
The House of Representatives has identified weaknesses in Nigeria’s auditing and accounting systems as major enablers of corruption, leading to significant revenue losses and undermining development efforts.
Chairman of the Public Accounts Committee (PAC), Rep. Bamidele Salam, made this assertion during the budget defense session with the Office of the Auditor General for the Federation (OAuGF).
He stressed that the deficiencies in the nation’s financial management systems have created loopholes that facilitate impunity in government agencies.
“There are substantial funds that should flow into government coffers but are lost due to weaknesses in our accounting systems, auditing practices, and financial management framework,” Salam noted.
The Chairman who emphasised inadequate auditing of key revenue-generating agencies as a major concern, added that the lack of proper oversight encourages financial mismanagement.
“When agencies are not audited thoroughly, it signals neglect and promotes impunity. This has been an ongoing issue due to budgetary and personnel constraints faced by the Auditor General’s office,” Salam said.
The PAC Chairman called for increased funding and staffing for the Auditor General’s office, and highlighted the importance of preventive measures in tackling corruption. “If the Auditor General’s office is well-funded and properly staffed, we can significantly reduce corruption by preventing it before it happens rather than reacting afterward,” he stated.
Salam also criticized the poor implementation of the capital component of the 2024 budget, warning that it negatively impacts governance and development goals. He urged the government to focus on boosting revenue rather than relying on borrowing. “Blocking revenue loopholes is critical. Strengthening our revenue systems will reduce our dependence on borrowing,” he added.
He further urged the Auditor General’s office to expedite the submission of annual reports, which are vital for the National Assembly’s oversight of the executive. Salam pointed out that Nigeria lags behind countries like Kenya, where audited financial reports are submitted more promptly.
In his response, the Auditor General for the Federation, Shaakaa Kanyitor Chira, outlined the challenges his office faces, including inadequate funding and a shortage of staff. These issues, he explained, have delayed the compilation and submission of annual reports.
Chira assured the committee that efforts are underway to address these challenges, pledging to clear the backlog of reports. “By March, we aim to submit the 2022 domestic report and the consolidated financial report. With adequate funding and staffing, we can improve our operations significantly,” he said.
The committee therefore pledged to collaborate with other parliamentary committees to enhance the effectiveness of the Auditor General’s office, ensuring greater accountability and transparency in the management of public funds.