The National Investment Promotion Commission (NIPC) faced scrutiny from the House of Representatives on Thursday over its expenditure of N3.15 billion in the first quarter of 2024, despite reporting a revenue of only N2.89 billion. The agency appeared before the Committee on Revenue Monitoring to explain the discrepancy.
The Director of Finance and Administration, Akwada James, attributed the overspending to irregular income timing, stating that the agency had committed to spending as planned in the annual budget. However, the Committee Chairman, Hon. James Faleke, expressed concern over the agency’s budgeting for activities not yet completed.
Faleke pointed out that the revenue collected for the first quarter of 2024 was N2.89 billion, while the expenditure reported was N3.15 billion, questioning the source of the excess funds and who authorized the overspending. James cited a letter from the Ministry of Finance authorizing the spending, which Faleke requested to be produced by Monday.
The Committee also raised concerns over the agency’s expenditure of 20% of its revenue in 2023, which Faleke deemed illegal. He threatened to deduct the spent amount from the agency’s salaries until fully refunded.
The Fiscal Responsibility Commission (FRC) was also summoned to explain their sessions with NIPC and why they had not queried the agency’s spending. The FRC representative, Mrs. Victoria Adizou-Angakuru, revealed that they had not received NIPC’s audited financial statements since 2019.
Faleke directed the Managing Director of NIPC to appear before the committee on June 5, 2024, with comprehensive records. He also suggested inviting the Accountant General to explain the discrepancies in the fully funded agency.
