Senator Olamilekan Adeola, who is the Chairman of the Senate Committee on Finance has revealed that no fewer than 400 out of 541 Federal Government’s Ministries, Departments, and Agencies (MDAs) are set to be scrapped from 2023 as recommended by Stephen Orosanye-led Presidential Committee on agencies’ rationalisation.
Olamilekan, who made this revelation on the second day of the ongoing interface between the committee and heads of MDAs on revenue drive for the implementation of the proposed ₦19.76trillion 2023 budget, pointed out that the Orosanye panel recommended had the retention of only 106 of the MDAs.
According to him, revenue generation was the most critical factor being considered by the Federal Government before retaining 106 MDAs or scrapping 400.
The Lagos West senator made the assertion after the Director General of the National Bio-safety Management Agency, Dr. Rufus Ebegba, had made a presentation to the committee on low revenue generation by the agency.
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The DG, in his submission, said only ₦2million had been generated by NBMA this year as against the ₦5 million it usually generated on yearly basis, noting that out of the ₦2.5billion appropriated for the capital budget this year, only ₦1.3billion was released.
The senator, who became furious by the report, told the Biosafety Management Agency boss that it was unacceptable for an agency spending ₦500 million a year outside capital projects to be remitting ₦5milllion into government coffers.
He noted that the time for such low revenue generation by any government agency was over, as those not meeting up would be scrapped as recommended by the Orosanye panel.
He said, ‘There is no way of stopping the implementation of the Orosanye panel because of the economic situation at hand in the country.
‘The government needs revenue for impactful budget implementation, particularly in the area of project execution, and can no longer afford to be dolling money to MDAs without corresponding returns on yearly basis.
‘We in the Senate are in support of the implementation of the Orosanye-led panel report to save the economy from self-inflicted bleeding.’
The anger of the committee climaxed after a submission made by the Managing Director of Sokoto Rima River Basin Development Authority, Engineer Buhari Bature Mohammed, who said out of the N7 billion collected from the government as funding for the year 2022, only a ₦7million revenue was generated.
The committee consequently agreed that the Orosanye report should be applied on agencies with yearly low revenue generation.