Nigeria’s “Project Lighthouse” Shines a Light on Debt Recovery – The federal government’s innovative “Project Lighthouse Programme” is making significant strides in debt recovery. A staggering sum of N5.2 trillion has been recovered from 10 Ministries, Departments, and Agencies (MDAs), according to recent updates.
The Beacon of Hope: Project Lighthouse
Aisha Omar, Director of Special Projects at the Ministry of Finance, unveiled these figures during a sensitization program in Gombe State. She highlighted that the initiative unearthed these debts from a pool of over 5,000 debtors spanning across ten MDAs. The genius behind the project? Harnessing the power of big data analytics technology to address the longstanding issue of debt recovery.
Omar elaborated on the project’s objectives: “Project Lighthouse aims to tap into big data technology to identify revenue loopholes, discover fresh revenue avenues, maximize current revenue sources, particularly non-oil revenue, and enhance fiscal transparency.”
Bridget Molokwu, representing the director and serving as the Deputy Director of Special Projects at the ministry, emphasized the system’s ability to collate, integrate, and analyze data from revenue-generating agencies. This process aids in making informed decisions about debt recovery, optimizing revenue streams, and ensuring fiscal transparency.
Molokwu expressed concerns over certain companies and individuals neglecting their debt obligations to the government, especially through platforms like GIFMIS and the Treasury Single Account (TSA). This oversight is primarily due to the lack of clear visibility over such transactions.
Breaking Down the Debt
The recovered debts encompass a wide range of liabilities:
- Outstanding amounts to the Federal Inland Revenue Service (FIRS).
- Refunds from companies that failed to execute projects they were paid for.
- Unsettled credit facilities given to entities and individuals by institutions like the Bank of Industry (BOI) and Bank of Agriculture (BOA).
- Judgment debts favoring the government.
- Amounts owed to the Pension Transition Arrangement Directorate (PTAD) by insurance firms, and more.
Molokwu is optimistic about the project’s impact: “Debt recovery will help diminish the nation’s debt burden, monitor daily revenue inflows, provide an accurate debt recovery profile, and seal revenue leakages. Project Lighthouse is at the forefront of this recovery movement.”
A Tech-Driven Approach to Debt Recovery
Abraham Atteh, the Project Consultant, delved deeper into the program’s objectives, highlighting its focus on tracking, retrieving, and recouping government debts. He assured that with Project Lighthouse’s intervention, all entities engaging in business with the government would be held accountable for their financial obligations.
Atteh further emphasized the government’s commitment to leveraging technology for debt recovery. He said, “We are deploying state-of-the-art technology to trace debts owed by both private and corporate entities, ensuring that all debtors are tracked using the latest technological tools.”
Nigeria’s Project Lighthouse is a testament to the power of technology in reshaping governance and financial accountability. By merging fiscal responsibility with technological innovation, the federal government is not only recovering funds but also setting a precedent for transparency and efficiency in public finance management.