Disaster! Auditor-General Uncovers Massive Revenue Leakages as Five Borno State MDAs Generate Zero ₦867m “Licence Fees”

Stanley Ugagbe

The 2024 Audit Report of the Borno State Government has exposed significant revenue generation failures across several ministries and agencies, with a number of government institutions recording zero Internally Generated Revenue (IGR) under the “licences” revenue category despite being allocated substantial revenue targets in the fiscal year.

The report, signed by the State Auditor-General, Shettima Bukar, revealed that none of the affected Ministries, Departments and Agencies (MDAs) generated a single Naira from the revenue sources assigned to them, resulting in a complete shortfall against their approved budgets.

According to the audit findings, the Ministry of Home Affairs, Information and Culture failed to generate any revenue from licences in 2024. The ministry had been projected to realise ₦1.12 million during the year but ended the period with an actual collection of ₦0.00, leaving a negative variance of ₦1.12 million.

Similarly, the Ministry of Transport recorded no revenue under the licences category despite a budget target of ₦59 million. The audit showed that the ministry did not remit any amount throughout the fiscal year, resulting in a revenue deficit equal to its entire budget projection.

The Road Traffic and Inspection Management Agency (ROTIMA), one of the agencies expected to contribute significantly to government revenue through licensing activities, also posted a zero collection record. The agency had been assigned an ambitious revenue target of ₦750 million but failed to generate any income from the source, creating one of the largest revenue gaps identified in the audit.

The Ministry of Health was equally cited for recording no revenue under the category. Although the ministry had a budgeted target of ₦57.25 million, the audit found that no collection was made during the year, leaving the entire projected revenue unrealised.

Also listed among the agencies with zero performance was the Ministry of Environment. The ministry was expected to generate ₦13,000 from licence-related revenue but failed to record any collection, resulting in a complete variance from its approved target.

According to the audit, the findings underscore persistent weaknesses in revenue mobilisation and collection mechanisms within some government institutions, raising concerns over accountability, enforcement and compliance with established revenue generation frameworks.

To address the lapses, the Auditor-General recommended a comprehensive strengthening of the Treasury Single Account (TSA) and Remita-based revenue collection system through the introduction of more robust checks and balances to ensure transparency and accountability in revenue management.

The report also called for enhanced supervision of revenue collectors, urging superior officers to conduct periodic random inspections of collection activities to prevent leakages and improve efficiency.

Furthermore, the Auditor-General advised the state government to extend the ongoing review of revenue-related laws beyond the Borno State Internal Revenue Board Law to cover tertiary institutions and other revenue-generating agencies. According to the report, such reforms would strengthen the institutional and regulatory framework required for sustainable revenue mobilisation across the state.

The audit equally stressed the need for the creation of a comprehensive database of all taxable entities and revenue-generating establishments operating within the state, noting that accurate data remains critical to improving revenue collection and monitoring.

In addition, the report recommended stronger collaboration among revenue-generating MDAs, the Borno State Internal Revenue Service and the Office of the Accountant-General to ensure proper accounting, recording and reporting of all revenues generated.

The Auditor-General further called for the establishment of a follow-up mechanism to monitor MDAs that recorded zero collections against their approved budgets, insisting that affected agencies must provide adequate revenue returns in subsequent fiscal periods.

To improve capacity and compliance, the report urged 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, rendering of returns and preparation of revenue reports.

The audit recommendations are expected to guide efforts aimed at plugging revenue leakages, enhancing accountability and boosting internally generated revenue as Borno State seeks to strengthen its fiscal sustainability amid growing development demands.