- The House of Representatives plans to investigate the revenue generation practices of NERC and SEC to ensure compliance with financial regulations and the 1999 Constitution.
- The Committee raised concerns over discrepancies in the budgets of the Infrastructure Concession Regulatory Agency and National Sugar Development Council, calling for greater transparency.
The House of Representatives has announced plans to investigate the revenue generation practices of the Nigerian Electricity Regulatory Commission (NERC) and the Securities and Exchange Commission (SEC) to ensure they comply with financial regulations and the 1999 Constitution (as amended). The decision was made while reviewing the 2024 budget performance of key revenue-generating agencies, including the Infrastructure Concession Regulatory Agency (ICRC) and the Nigeria Sugar Development Commission (NSDC).
Hon. Abiodun Faleke, Chairman of the House Committee on Finance, revealed the investigation while addressing concerns over the documents presented by the agencies. Unsatisfied with the information, he established an ad hoc committee to thoroughly analyse the SEC’s budget performance. Additionally, after hearing from ICRC Director of Infrastructure, Shehu Sani Danmusa, the Committee requested detailed information on all concessionaires and the fees charged by ICRC since 2008. The committee pointed out discrepancies in ICRC’s revenue and expenditure reports and emphasised the need for better transparency and adherence to financial standards.
In the case of NERC, Chairman Mr Sanusi Garba presented the agency’s income and expenditure for 2023 and 2024, stating that NERC’s primary source of revenue comes from the electricity market. He explained that the Commission only takes “just enough” from the market to fund its operations. However, Hon. Faleke questioned the vague term “just enough,” pressing for specific figures to understand the actual revenue NERC generates. He noted that while NERC is not a revenue-generating body by design, it is expected to be self-funded, with 80% of its operating surplus required by law to be remitted to the federal government’s consolidated revenue.
The Committee raised further concerns about the lack of transparency regarding NERC’s income and called for detailed reports on the agency’s revenue, expenditures, and invoices related to energy purchases.
Additionally, the Committee reviewed the National Sugar Development Council’s (NSDC) financial practices, noting concerns over its spending on non-essential items, such as foreign travel and office renovations, while neglecting its core mandate of sugar sector development. NSDC Director General Kamal Bakari defended the agency’s finances, explaining that the sugar levy and other revenues primarily fund it. However, the Committee also questioned the effectiveness of the organisation’s Out-Grower Support Funds regarding sugar production outputs.
Hon. Faleke emphasised the need for more efficient use of Internally Generated Revenue (IGR) and pointed out that Nigeria’s sugar sector lags behind countries like Brazil, which has advanced agricultural practices and utilises all sugar by-products, including biofuel production. The Committee has directed the NSDC to provide more comprehensive records to evaluate its budget performance further.
The investigations into NERC and SEC and the concerns raised about ICRC and NSDC reflect the Committee’s broader efforts to ensure greater accountability and transparency in Nigeria’s revenue-generating agencies.