•Defaulting govt debtors still being paid through TSA, GIFMIS
Ndubuisi Francis in Abuja
The federal government revealed yesterday that it has so far recovered N57 billion from approximately N5.2 trillion debts owed to 10 Ministries, Departments and Agencies (MDAs) through the Project Lighthouse Programme being managed by the Ministry of Finance.
The debts were in the form of debt liabilities to the Federal Inland Revenue Service (FIRS); refunds to the government by companies which failed to deliver on projects for which payment had been effected, unpaid credit facilities granted to both corporate entities and individuals by the Bank of Industry (BOI) and Bank of Agriculture (BOA).
Others were judgment debt in favour of government, and debts owed to Pension Transition Arrangement Directorate (PTAD) by insurance companies, among others.
Data from Project Lighthouse Programme also revealed that many companies and individuals who owe government agencies and refused to honour their obligations were still being paid, especially through platforms such as Government Integrated Financial Management Information System (GIFMIS) and Treasury Single Account (TSA) due to lack of visibility over such transactions.
In a statement issued by the Director (Press & Public Relations) in the ministry, Mr. Stephen Kilebi, the government disclosed that the debts came to the spotlight from data aggregated from over 5,000 debtors across ten MDAs, adding that the aggravation was still ongoing.
“The Project Light House Programme of the Federal Government being managed by Federal Ministry of Finance, has through the consolidation efforts of the Debt Analytics and Reporting Application, been able to aggregate monumental debts of approximately N5.2 trillion aggregate recovery in 10 MDAs due to concerted efforts on the part of stakeholders and federal government.
“The Director, Special Projects, Federal Ministry of Finance, Aisha Omar, made this disclosure in Gombe State during a one-day sensitisation programme for the North-east geopolitical zone programme on federal government’s debt recovery drive through the Project LightHouse Programme.
“Omar hinted that these debts came to the spotlight from data aggregated from over 5,000+ debtors across 10 MDAs, adding that, the aggravation was still ongoing.
“According to Omar, the Project Lighthouse initiative was designed to help solve the intractable and perennial problem of debt recovery by using big data analytics technology,” the statement added.
Omar, who was represented at the event by the Deputy Director in the Special Projects Department in the ministry, Mrs. Bridget Molokwu, noted that the core focus of Project Lighthouse was to leverage on big data technology to help block revenue loopholes, identify new revenue opportunities, optimise existing revenue streams especially non-oil revenue as well as improve fiscal transparency.
Omar, emphasised that the essence of the initiative was the recovery of debt owed to the federal government by individuals and companies through the debt recovery capability of Project Lighthouse engine.
The system, according to her, collects, integrates and analyses data from revenue generating agencies in order to create insightful information for improved decision making on debt recovery.
According to the director, the importance of the project was to leverage on big data technology to help in blocking revenue loopholes, identifying new revenue opportunities, optimising existing revenue streams especially the non-oil revenue as well as improving fiscal transparency.
Data from Project Lighthouse Programme, she added, revealed that many companies and individuals who owed government agencies and refused to honour their obligations were still being paid especially through the government platforms such as Government Integrated Financial Management Information System (GIFMIS) and Treasury Single Account (TSA) due to lack of visibility over such transactions.
The director explained that the debts were in the form of debt liabilities to the Federal Inland Revenue Service (FIRS); refunds to the government by companies which failed to deliver on projects for which payment had been effected, unpaid credit facilities granted to both corporate entities and individuals by the Bank of Industry (BOI) and Bank of Agriculture (BOA). Others were judgment debt in favour of government, and debts owed Pension Transition Arrangement Directorate (PTAD) by insurance companies, among others.
She explained that the ministry had taken steps to address the major revenue loopholes.
Some of the steps included the issuance of a ministerial directive on September 26, 2019 to all MDAs with a view to aggregating all government debts across the Public Finance Space, to have a single window on the credit profile of the federal government and the Federal Executive Council (FEC) regulatory approval on March 31,2021,
extension of the functionalities of the debt recovery capability of the Lighthouse Project Programme.
She added that the above measures would enable the finance ministry to fully automate the debt recovery process and make settlements of debts as seamless as possible.
