FG loses N1.69t to under remittance by CBN, NCC, others

A Senate Ad Hoc Committee has revealed that 25 agencies have shortchanged the Federal Government to the tune of N1.695 trillion by deliberately refusing to remit revenue accrued to the Consolidated Revenue Fund.
The committee also disclosed that the Nigerian National Petroleum Corporation ran on deficit of about N3.115 trillion between 2012 and 2016.
The committee said more than 600 agencies were involved, but listed 92 of them.
Among them were the Central Bank of Nigeria, Nigeria Communications Commission, Nigeria Ports Authority and Federal Inland Revenue Service.
The committee, led by Senator Olamilekan Adeola, was mandated by the Senate to investigate all agencies and institutions of government charged with the responsibility of generating, collecting, accounting and remittance of internally generated revenue.
According to the committee, the total revenue generated by the agencies between 2012 and 2016 was N21.5 trillion.
The Ad-Hoc Committee also uncovered that the Ministry of Finance had not been carrying out its statutory oversight on NNPC account adequately.
The committee observed that Revenue Generating Agencies did not have resident Treasury Officers posted by the Accountant General of the Federation.
It said: “Almost all the government agencies, fully funded or partially funded from Federal Government appropriations, complain of short-fall in their funding. This affects both capital and recurrent cost.
“In some cases salaries have to be supplemented from Internally Generated Revenue.”
The committee, in its recommendation, urged the Senate to amend the laws to make it mandatory for all Revenue Generating Agencies to accommodate resident auditors to be posted by the Auditor General of the Federation that will have access to all financial records and books.
It said: “The Fiscal Responsibility Act should be amended in a way to compel all Agencies and institutions of government on compliances with financial regulations regarding income generation, accounting and remittances.”
In the 32-page interim report, 25 out of the entire 93 revenue generating agencies covered were alleged to have defrauded the Federal Government to the tune of N1.7 trillion.
The report indicated that the Central Bank of Nigeria generated N3 trillion, spent N2 trillion, remitted N349.4 billion and defrauded the government of N13 billion.
Also, Nigerian Ports Authority recorded under remittance of N86.636 billion into the Consolidated Revenue Fund despite generating N789.104 billion within five years.
In addition, the Federal Inland Revenue Service generated N455.5 billion but had under remittance of N33.83 billion.
The Nigerian Customs Service, which generated N335.855 billion, failed to remit N83.963 billion as 25 per cent of the amount generated in line with the provisions of the Fiscal Responsibility Act 2007.
On the NNPC, the Corporation generated N15.4 trillion, but spent N18 trillion with deficit of N3.1 trillion.
The interim report said: “It should be noted that NNPC management has refused to provide further information and attend scheduled meeting with the Committee.
“All efforts to bring its management back to the meeting have proved abortive.
“Also, the Ministry of Finance has not been carrying out its statutory oversight on NNPC accounts adequately enough.”