The Government of Nigeria is grappling with significant challenges in debt recovery, as highlighted by Mr. Okokon Ekanem Udo, Permanent Secretary for Special Affairs at the Federal Ministry of Finance. At a workshop in Enugu, Mr. Udo revealed a concerning scenario: a multi-billion naira debt owed by more than 5,000 debtors from 93 government agencies.
This revelation resonated strongly, particularly with the insights from Mr. Aisha Omar, Director of Special Projects, who brought to light reimbursements extracted from companies that failed to fulfill their contractual obligations despite receiving payments. The outstanding debts encompass credit facilities provided by institutions like the Bank of Industry and the Bank of Agriculture, legal debts owed to the government, as well as dues owed to the Pension Transitional Arrangement Directorate by insurance companies, among others.
Mr. Udo underscored that numerous businesses and individuals indebted to government agencies are still receiving payments, partly due to limited visibility on specific government platforms such as GIFMIS and the Treasury Single Account (TSA).
To tackle this issue, the Federal Ministry of Finance initiated Project Lighthouse, designed to gather crucial economic and financial data from various agencies that previously did not share this information. The initiative aims to bolster debt recovery endeavors and enhance transparency.
Evidently, the absence of information sharing and effective enforcement mechanisms pose substantial obstacles, resulting in noteworthy revenue losses for the government. The establishment of Project Lighthouse stands as a pivotal stride toward enhancing debt and payment management, as well as ensuring improved financial governance nationwide.
It is imperative for all stakeholders to collaborate closely in identifying defaulting debtors, reinforcing controls and monitoring systems, and guaranteeing the transparent and efficient utilization of public funds. Through such collective efforts, Nigeria aims to ameliorate its financial standing and fortify its credibility on the global stage.