Senate to scrap 400 MDAs in 2023 over low revenue generation

Written by on September 15, 2022

The Nigerian Senate has stated that 400 out of 541 federal government ministries, departments and agencies will be scrapped in 2023 following a recommendation by the presidential committee on agency rationalisation.

The Chairman of the Senate Committee on Finance, Senator Olamilekan Adeola on Wednesday at a 2-day interactive session with members of the Senate Committee on Finance and heads of MDAs made the declaration on the second day of the ongoing interface between the committee and heads of MDAs on revenue drive for the implementation of the proposed N19.76trillion 2023 budget, said Orosanye panel recommended the retention of 106 of the MDAs.

The senator made the revelation while responding to a presentation made by Dr. Rufus Ebegba, the director general of the National Biosafety Management Agency, on the low revenue generation by the agency.

Ebegba had said his agency only generated N2 million against the N5 million yearly generated, he noted that out of the N2.5billion appropriated for the capital budget this year, only N1.3 billion was released.

In response, the senator said the committee had recommended that 106 MDAs be retained and that one of the basic factors for their retention was revenue generation.

The senator said it was unacceptable for an agency to be remitting N5 million yearly while it’s spending N500 million outside capital projects.

However, in his own presentation, the Managing Director of Sokoto Rima River Basin Development Authority, Engineer Buhari Bature Mohammed told the committee that out of the N7 billion collected from the government as funding for the year 2022, the agency only generated revenue of N7 million.

With Mr Mohammed’s presentation, the committee came to an agreement that the recommendation by the presidential committee on agency rationalisation should be applied to agencies with yearly low revenue generation.

Senator Adeola added by saying that in 2023, there will be zero budget allocation for any agency whose accounting officer refused to honour the ongoing interface on revenue generation.

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