Weak Auditing, Accounting Systems Encouraging Corruption — Reps

The House of Representatives has identified weaknesses in the auditing and accounting systems as major contributors to the widespread corruption in Nigeria. According to the Chairman of the Public Accounts Committee of the House, Hon. Bamidele Salam, these shortcomings are depriving the government of crucial revenue and hindering its ability to deliver essential services and development.

At a budget defense session with the Office of the Auditor General for the Federation (OAuGF), Salam pointed out that the inefficiencies in the country’s financial management systems were enabling corruption to thrive. He stated, “There are a lot of monies that ought to accrue to government that we are losing as a result of weaknesses in our accounting systems, weaknesses in auditing, weaknesses in general financial management architecture.”

He also noted that these weaknesses were reflected in the poor performance of the Auditor General’s office. “The committee raised a few observations also on the need for the Auditor General to expand its coverage of major Ministries, Departments, and Agencies of government, in a manner that will put greater attention on the places that have more of the revenue.”

Salam emphasized that some key government agencies have not been properly audited in recent years. He warned that the lack of proper auditing of these agencies creates an environment where impunity can flourish. “If you don’t audit properly, you are giving an indication that there is less attention on certain agencies, and that may promote a lot of impunity happening in those agencies,” he explained.

Despite these challenges, Salam expressed the committee’s commitment to working with other parliamentary bodies to ensure that the Auditor General’s office is better equipped to carry out its duties. “Even though the Auditor General has limitations because of budgetary constraints and personnel shortages, the office is mandated to audit almost 1,000 Ministries, Departments, and Agencies. This requires significant resources and manpower,” he said.

He further stressed that strengthening the Auditor General’s office—through increased funding and staffing—would drastically reduce corruption in Nigeria by preventing it rather than fighting it after the fact. “We believe very strongly that if the Auditor General’s office is well-funded, if the Auditor General’s office is well-staffed, cases of corruption will be minimised drastically in Nigeria,” Salam stated.

Additionally, Salam expressed concern about the poor implementation of the capital component of the 2024 budget. He noted that this was negatively impacting governance and development projections. “The implementation of the capital component of the 2024 budget has not been encouraging. We have expressed this observation when we had a meeting with the Accountant General of the Federation about a week ago,” he said. He called for more work on the revenue side of the budget to reduce dependence on borrowing.

In his presentation, Auditor General for the Federation, Shaakaa Kanyitor Chira, acknowledged the challenges faced by his office, including underfunding and understaffing. These issues have resulted in delays in compiling and submitting annual reports. However, Chira assured the committee that with adequate funding and staffing, the office would overcome these challenges and catch up on the backlog of reports. “My commitment is to submit 2022 in the month of March. That’s the one that has to do with non-compliance. By first week of March, I will submit the results and give you the consolidated financial report by February, then by the end of March, I will do it,” he promised.

This exchange underscores the urgent need for reform in Nigeria’s auditing and financial systems to curb corruption and improve governance.