The Federal Ministry of Finance has made significant strides in the recovery of outstanding debts owed by various ministries, departments, and agencies to the Federal Government.
Aisha Omar, the Director of Special Projects at the Federal Ministry of Finance, disclosed during a one-day workshop in Enugu that over N57 billion has been recovered from the N5.2 trillion debts.
Omar, speaking at the workshop focused on the Federal Government Debt Recovery Drive under the Project Lighthouse Programme for the South-East zone, highlighted the magnitude of the debts uncovered.
She noted that the debts were identified through data aggregated from more than 5,000 debtors spanning over 93 MDAs.
While she acknowledged that additional recoveries had been achieved, Omar did not provide specific figures. However, she emphasized that the ministry could account for the official recovery figure of N57 billion, which primarily comprised liabilities to the Federal Inland Revenue Service.
In addition to recovering debts owed to the Federal Government, Molokwu, the Deputy Director of Special Projects, revealed that the ministry received refunds from companies that failed to fulfill contractual obligations.
These refunds also included unpaid credit facilities extended by financial institutions such as the Bank of Industry and Bank of Agriculture, as well as Judgment Debts in favor of the government and outstanding debts owed to the Pension Transitional Arrangement Directorate by insurance companies.
Molokwu emphasized that revenue leakage has been exacerbated by inadequate information sharing and enforcement mechanisms. However, she highlighted the ministry’s efforts in consolidating debt data through the Debt Analytics and Reporting Application.
This initiative has enabled the aggregation of significant debts amounting to approximately N5.2 trillion. Through concerted efforts by stakeholders and the Federal Government, around N57 billion has been successfully recovered thus far.
The ongoing debt aggregation process signifies the government’s commitment to addressing revenue challenges and improving fiscal management. By enhancing debt recovery mechanisms and strengthening collaboration across sectors, the government aims to optimize revenue generation and promote financial sustainability.
