FCCPC generated N4.021 billion in 2021 but remitted N1.3 billion to the Consolidated Revenue Fund while in the current fiscal cycle, it generated N3.661 billion but remitted N1.2 billion to the Fund.
The House of Representatives Committee on Finance has asked the Minister of Finance and National Planning, Zainab Ahmed, to sack the Director of Finance of the Federal Competition and Consumer Protection Commission (FCCPC), Akinyoghon Ojo.
The committee indicted Mr Ojo and FCCPC of spending internally-generated revenue despite being a fully funded agency that ought to remit all revenue to the Consolidated Revenue Account.
The agency was indicted at the public hearing on the 2023-2025 Medium Term Expenditure Framework (MTEF) on Tuesday.
The agency generated N4.021 billion in 2021 but remitted N1.3 billion. In the current fiscal cycle, the agency generated N3.661 billion but remitted N1.2 billion.
James Faleke, the chairman of the committee, queried the expenditure, noting that the agency acted contrary to section 80 of the 1999 constitution and the Fiscal Responsibility Act.
Section 81 reads, "All revenues or other money raised or received by the Federation (not being revenues or other money payable under this Constitution or any Act of the National Assembly into any other public fund of the Federation established for a specific purpose) shall be paid into and form one Consolidated Revenue Fund of the Federation."
Mr Faleke said the director of finance violated the constitution by approving the spending of the funds without the approval of the National Assembly.
"Despite having a budget for overhead, you now took money that is supposed to go to Consolidated Revenue Fund.
"Clerk, collect his service number, I want to write a letter to the minister of finance. He must be removed. If everybody spends their income, how will the government fund the budget?
"You earned N4 billion and spent N3 billion. I will not take it. The DFA has the responsibility to obey finance regulations. If he violated financial regulations, he should leave the place. Clerk, write to the minister of finance, that in respect of this agency, no fund should be released until we have seen the letter of the redeployment of the DFA. No fund should be released," he said.
In his defence, Mr Ojo said the funds were used to augment the operational expenses of the agency. He stated that the agency has applied to be given financial autonomy, but is yet to be approved.
He claimed that a committee of the National Assembly approved an internally generated budget.
"We presented our IGR budget to our committee and it was approved by the committee. The money they allocated to us from the treasury, we have not touched it? We did that because we have applied for financial autonomy through our minister - the Minister of Trade and Investment, Niyi Adebayo," he said.
Mr Faleke dismissed the explanation of the FCCPC. He insisted that no committee has the power to approve expenses outside the budget.
"You would have submitted an amendment or supplementary. It is the law. No committee has the power to approve IGRs outside the national budget because all the IGRs have been collated. It is every IGR that is collated to form the national income," he said.
Mr Faleke said the agency has N280 million as overhead but spent millions on welfare.
"On welfare package, the whole of last year, it was N11 million. Six months now, it is already N89 million. In another six months, it will be N200 million. Is it welfare for the commissioner or staff? We want to see the details, so that you don't overpay yourself, leaving the staff. I want to see the approved IGR budget you are talking about,"
The Executive Commissioner of the Commission, Adamu Abdulahi, said the agency increased expenditure to generate money, noting that "it takes money to generate money."
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Speaking on the expenses of the agency, the Deputy Chairman of the committee, Sabiu Abdulahi (APC, Niger), accused the agency of frivolous expenses.
"Last year, you spent N38 million on publicity and advert placement. So far, in seven months, you have spent over N142 million. The same thing applies to all your overheads. If you look at local training, you spent N198 million. In seven months, you have spent over N266 million. If you look at local transport, it is the same thing.
"All we get is that you are just creating expenses around these items. More unfortunate that you are a fully funded agency. We are not prudent in the way we manage resources," Mr Abdulahi said.
In his ruling, Mr Faleke directed that the existing funds in the account of the agency should be barred.
"There is N570 million in that account, block that money, it must not be spent until we clear them. On Monday. all your officers must appear. Come with a new director of finance," Mr Faleke directed.
