Reps to Block Budgets of Defaulting MDAs

The House of Representatives has proposed a constitutional amendment that could prevent government agencies, commissions, and corporations from accessing budget allocations if they fail to submit their annual audited accounts to the Office of the Auditor-General for the Federation. The initiative is aimed at improving fiscal discipline and ensuring public institutions adhere to long-standing accountability standards.

For years, many Ministries, Departments, and Agencies (MDAs) have repeatedly failed to provide timely audited financial reports, creating significant gaps in oversight. This has limited the Auditor-General’s ability to monitor public funds and has hindered the work of the National Assembly’s Public Accounts Committees, which rely on accurate financial records to examine spending, identify irregularities, and hold agencies accountable.

Currently, the Constitution requires MDAs to submit audited accounts, but it does not specify a strict timeline. This loophole has allowed several agencies to operate for multiple fiscal years without completing audits, weakening financial transparency and making it difficult for lawmakers to track how public money is used. Lawmakers have noted that the absence of updated financial statements prevents them from confirming whether agencies are complying with budgetary approvals and following up on prior audit queries.

To address this problem, the House Committee on Constitution Review, led by Deputy Speaker Dr. Benjamin Kalu, has advanced a proposal mandating that all government statutory bodies, commissions, authorities, and agencies created by Acts of the National Assembly submit detailed audited accounts within 90 to 180 days after the end of each financial year.

Under the amendment, any institution that fails to comply would be barred from having its budget approved for the following year. Additionally, the Auditor-General would be required to submit the names of defaulters to the National Assembly to ensure enforcement. Lawmakers believe linking budget approval to timely audit submissions will compel agencies to prioritize financial reporting and strengthen oversight.

If enacted and signed into law by the President, the amendment would represent one of the strongest measures to enforce accountability in Nigeria’s public finance system. It is expected to enhance transparency, improve monitoring of public expenditure, and encourage government agencies to comply with audit regulations consistently. The House plans to debate and vote on the proposal when the National Assembly returns from its recess later in January 2026.