Complete Failure: Despite ₦1.5bn Revenue Target, Borno Security Trust Fund, Housing Corporation, Ministry of Transport, Education Endowment, Others Generate Zero “Fees-Based IGR”

Stanley Ugagbe

A fresh audit report on the finances of the Borno State Government has uncovered widespread revenue generation failures among several Ministries, Departments and Agencies (MDAs), with multiple institutions recording zero Internally Generated Revenue (IGR) under the “Fees revenue” category throughout the 2024 fiscal year.

The findings, contained in the 2024 Annual Report of the Auditor-General for Borno State, Shettima Bukar, and obtained by SecretsReporters, revealed that despite receiving ambitious revenue targets running into billions of Naira collectively, the affected agencies failed to remit a single kobo, resulting in a complete shortfall against their approved budgets.

The audit report highlighted the affected MDAs and agencies, raising concerns about the effectiveness of revenue collection mechanisms and oversight within the state’s public institutions.

The Borno State Security Trust Fund emerged as one of the most notable cases. According to the audit, the agency was expected to generate ₦377.5 million from fees during the year. However, the report showed that it recorded an actual collection of ₦0.00, leaving a negative variance of ₦377.5 million and a complete failure to meet its revenue target.

Similarly, the Ministry of Agriculture and Natural Resources failed to generate any revenue under the fees category despite a budget projection of ₦2.02 million. The ministry ended the year with zero collections, creating a total revenue deficit equivalent to its approved target.

The Ministry of Animal and Fisheries Development also posted a disappointing performance. The audit disclosed that although the ministry was expected to realise ₦7.6 million in fees-based revenue, no collection was recorded throughout the fiscal year, resulting in a complete revenue shortfall.

The Ministry of Transport was equally listed among the agencies that failed to generate any fees-related revenue. The ministry had a budget estimate of ₦166 million but recorded an actual revenue figure of ₦0.00, leaving the entire target unrealised.

For the Borno State Housing Corporation, the audit revealed a similar pattern. The corporation was projected to generate ₦2.3 million through fees but failed to record any revenue, resulting in a 100 per cent variance from its approved budget.

The report further showed that the Borno State Education Endowment Fund generated no fees revenue despite being assigned a substantial target of ₦643.38 million. The failure represents one of the largest revenue gaps identified under the fees category during the year under review.

The Hospitals Management Board was also cited in the audit for recording zero revenue collection against its projected fees income of ₦44.3 million. As a result, the board failed entirely to meet its budget expectations.

Likewise, the College of Health Technology recorded no fees-based revenue despite a budget estimate of ₦51.3 million. The audit found that the institution did not generate any income from the designated source during the reporting period.

The Ministry of Sports Development was another agency flagged in the report. The ministry had a revenue target of ₦2.216 million but ended the fiscal year with zero collections, resulting in a complete budget variance.

Under the category classified as Others, the audit also recorded a budget projection of ₦264 million with no corresponding revenue generated, leaving yet another significant gap in the state’s internally generated revenue profile.

The Auditor-General observed that the trend of zero collections across numerous MDAs points to serious deficiencies in revenue administration and accountability mechanisms, warning that such failures could undermine the state’s efforts to improve financial sustainability and reduce dependence on federal allocations.

To address the shortcomings, Bukar recommended the strengthening of the Treasury Single Account (TSA) and Remita revenue collection framework through stricter checks and balances aimed at enhancing transparency and plugging leakages.

He also called for improved supervision of revenue collectors through periodic and random inspections by superior officers to ensure compliance with established procedures and prevent inefficiencies.

The report further urged the state government to review and strengthen the laws governing tertiary institutions and other revenue-generating agencies, noting that such reforms would complement the already reviewed State Internal Revenue Board Law and improve the institutional framework for revenue mobilisation.

According to the Auditor-General, government must also establish and maintain a comprehensive database of all taxable entities and revenue-generating organisations operating within the state to improve monitoring and collections.

The audit additionally recommended stronger collaboration among revenue-generating MDAs, the Borno State Internal Revenue Service and the Office of the Accountant-General to guarantee proper accounting, recording and reporting of revenues generated across government institutions.

Bukar stressed the need for a robust follow-up mechanism to monitor agencies that recorded zero collections against their approved budgets, insisting that such institutions must be compelled to improve their revenue performance and render adequate returns in subsequent fiscal years.

The report also advocated regular training and sensitisation programmes for personnel of the Borno State Internal Revenue Service, the Office of the State Auditor-General and the Office of the Accountant-General, particularly in areas relating to electronic revenue collection systems, revenue returns and reporting procedures.