The Federal Government has achieved a significant milestone in debt recovery, reclaiming N57 billion from the N5.2 trillion liabilities owed by various Ministries, Departments, and Agencies (MDAs).
The announcement was made by Okokon Ekanem Udo, the Permanent Secretary for Special Duties at the Federal Ministry of Finance.
During a Sensitization Workshop on Federal Government Debt Recovery Drive held in Enugu State, Ekanem highlighted the importance of the recovery efforts.
The debts came to the forefront through data aggregation from over 5,000+ debtors across more than 93 MDAs. This initiative was based on information provided by the ministry’s spokesman, Mohammed Manga.
The recovery process extended beyond outstanding payments to include refunds owed to the government. These refunds originated from companies that failed to deliver on projects despite receiving payment.
Additionally, unpaid credit facilities granted to both corporate entities and individuals by institutions such as the Bank of Industry (BOI) and the Bank of Agriculture (BOA) were addressed.
The recovery efforts also encompassed judgment debts in favor of the government and outstanding amounts owed to the Pension Transitional Arrangement Directorate (PTAD) by insurance companies.
Project Lighthouse, an initiative launched by the Federal Ministry of Finance, played a crucial role in achieving these results.
By aggregating relevant economic and financial information from multiple agencies, Project Lighthouse addressed the lack of data sharing that had previously hindered debt recovery efforts.
Ekanem emphasized that revenue loopholes often stem from inadequate information sharing and enforcement. Through the Debt Analytics and Reporting Application, the ministry successfully aggregated monumental debts totaling approximately N5.2 trillion.
As the debt aggregation effort continues, stakeholders and the Federal Government have collaborated to recover approximately N57 billion so far.
To further address revenue leakages, the ministry issued a Ministerial directive to all MDAs. This directive aims to aggregate all government debt across the public finance space and establish a single window for monitoring the credit profile of the government.
The ongoing efforts demonstrate the commitment to efficient debt management and financial transparency.
