Companies, individuals on run as FG uncovers over N5.2trn debt

By Seun Ibiyemi

The Federal government has uncovered monumental debts of approximately N5.2 trillion. This was stated by the Director, Special Project, Federal Ministry of Finance, Budget and National Planning, Victor Omota during the North-West sensitisation workshop organized for personnel from various Ministries, Department and Agencies, MDAs on Federal Government debt recovery drive through project Lighthouse Program.

Omota who was represented by his Deputy Director, Mohammed Saidu said the debt is being owed by over 5,000 debtors across  ten (10) Ministries, Departments and Agencies (MDAs).

According to him, “The Ministry through the consolidation efforts of the Debt Analytics & Reporting Application has been able to aggregate monumental debts of approximately N5.2 trillion.

“These debts came to the spotlight from data aggregated from over 5,000+ debtors across ten (10) Ministries, Departments and Agencies (MDAs). The debt aggregation effort is still ongoing,” he said.

The Director added that, “These debts are in the form of debt liabilities to the Federal Inland Revenue Service (FIRS); refunds to the Government by companies who failed to deliver on projects for which payment had been effected, unpaid credit facilities granted to both corporate entities and individuals by the Bank of Industry (BOI) and Bank of Agriculture (BOA); judgment debt in favour of Government, debts Owed Pension Transitional Arrangement Directorate (PTAD) by Insurance Companies etc.

“The Federal Ministry of Finance, Budget and National Planning (FMFBNP) initiated ‘Project Lighthouse,’ which is one of the portfolio projects under the Strategic Revenue Growth Initiative (SRGI). This initiative has enabled the aggregation of relevant economic and financial information from multiple agencies who hitherto did not share data. Generally, revenue loopholes have been aided by poor information sharing and enforcement. Data from Project Lighthouse revealed that many companies and individuals who owe government agencies, have refused to honour their obligations were still being paid especially through the government platforms such as GlFMIS and Treasury Single Account (TSA) due to lack of Visibility over this transactions,” Omota noted.

The Director however solicited for the support of the participants drawn from various MDA across the zone in providing quality and relevant information (debt-related data) to populate the platform in order to realise the goals and aspirations of the laudable project.