The Federal Ministry of Finance has successfully recovered over N57 billion from debts owed by various ministries, departments, and agencies (MDAs) to the Federal Government.
This revelation was made during a one-day workshop held in Enugu, where the Director of Special Projects, Aisha Omar, shared insights into the government’s Debt Recovery Drive under the Project Lighthouse Programme for the South-East zone.
The disclosed amount represents a fraction of the massive N5.2 trillion debt portfolio accumulated by over 5,000 debtors across more than 93 MDAs.
While acknowledging additional recoveries, Omar, represented by Deputy Director Bridget Molokwu, expressed challenges in providing comprehensive data at the workshop.
The recovered debts predominantly consisted of liabilities to the Federal Inland Revenue Service, alongside refunds from companies failing to deliver on contracted projects and unsettled credit facilities from institutions like the Bank of Industry and Bank of Agriculture.
Furthermore, outstanding payments to the Pension Transitional Arrangement Directorate by insurance companies contributed to the retrieved funds.
Molokwu highlighted systemic deficiencies, including poor information sharing and enforcement, as contributing factors to revenue loopholes.
She emphasised the pivotal role of the Debt Analytics and Reporting Application in consolidating debts, facilitating the recovery process.
Project Lighthouse, a strategic initiative by the Federal Ministry of Finance, played a vital role in enhancing data aggregation across various agencies, fostering transparency in government transactions.
Molokwu emphasised that despite efforts to recover debts, some companies and individuals continued to receive payments through government platforms, underscoring the imperative for improved transaction visibility.
As the ministry continues to pursue its debt recovery objectives, stakeholders remain committed to leveraging initiatives like Project Lighthouse to streamline economic and financial information exchange, ultimately fortifying fiscal accountability and sustainability.
