The Federal Ministry of Finance, Budget and National Planning has urged all federal ministries, departments and agencies (MDAs) to key into its debt recovery policy to improve government revenues. At least 7,000 debtors owe the MDAs at least N5 trillion.

The director of special projects (FMFBNP), Victor Omota, stated this during the South-South zonal sensitisation workshop on the federal government debt recovery drive through Project Lighthouse on Tuesday in Asaba, Delta.

Mr Omota said the ministry had recovered over N58 billion owed 11 MDAs out of N5.2 trillion owed by over 7,000 debtors in the past three years through its Project Lighthouse policy.

He said the federal government designed the project through collaboration with the 946 federal MDAs to recover all debts owed and block the revenue leakages.

The director said efforts were intensified to track all the debts owed the MDAs by its clients to ensure improved revenue to the government.

“It may interest you to note that the ministry, through the consolidation efforts of the debt analytics and reporting application, has been able to aggregate monumental debts of approximately N5.2 trillion,” stated Mr Omota. “These debts came to the spotlight from data aggregated from over 7,000 debtors across 11 MDAs. The debt aggregation effort is still ongoing.”

“You will recall that one of the key economic policy objectives of the current administration is improving federal government revenues by targeting and increasing revenues from non-oil revenue sources. An important part of our policies and strategies is to leverage big data technology to help block revenue loopholes, identify new revenue opportunities, optimise existing revenue streams,” Mr Omota.

He added, “In actualising this goal, the ministry 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.”

According to him, 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,” explained Mr Omota. “In spite of the debt, the debtors were still being paid, especially through the government platforms such as GIFMIS and Treasury Single Account (TSA), due to a lack of visibility over these transactions.”

The government official said, “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.”

(NAN)