Published On: Mon, Oct 23rd, 2017

CBN, NPA, Others Indicted In N1.7trillion Revenue Loss Senate Probe

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By Nuel Suji – The Senate is set to receive a damning report that has uncovered a huge loss of revenue proceeds totaling N1.7trillion accruable to the federation account, indicting some revenue agencies.

Central Bank of Nigeria (CBN), Nigerian Port Authority (NPA) and some federal revenue generating agencies are now discovered to have denied government the sum of N1.7 trillion in  revenue which they failed to remit to government coffers.

The Senate Ad-hoc Committee probing the alleged “misused, under remittance and other fraudulent activities in collection, accounting, remittance and expenditure of Internally generated revenue by revenue generating agencies between January 2012 and December 2016,” presented its interim report for senate consideration last Thursday.

Nigeria’s cash cow, the Nigerian National Petroleum Corporation (NNPC), alone was found to have ran a deficit of N3.1trillion during the period under review.

According to the interim report obtained by our Correspondent, N1.695,585 887, 406 reportedly lost by the federal government during the stated period was from a total sum of N21.5trillion generated by 93 agencies covered.

The reports indicate that the Nigerian Customs Service which generated N335.855billion, also failed to remit N83.963billion as 25% of the amount generated in line with the provisions of the Fiscal Responsibility Act 2007.

Similar negative report was made on FIRS by the committee report, indicating that the tax agency generated the sum of N455.5billion but had under remittance of N33.83billion.

Also included is the Nigerian Ports Authority which recorded under remittance of N86.636 billion into the Consolidated Revenue Fund (CRF) despite the fact that it generated N789.104billion during the period under review.

Others are CBN which under remitted to the tune of N13.716 out of N3.098trillion it generated.; NIMASA was found to have failed to remit N184.489billion out of N301.160billion generated; NTA N5.567billion under remittance out of N56.817billion generated etc.

NNPC, the committee noted generated N15.541trillion, its entire expenditure during the period was N18.657trillion exceeding the corporations revenue profile by N3.115trillion.

The Committee said, “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,” the report noted.

“Also, the Ministry of Finance has not been carrying out its statutory oversight on NNPC accounts adequately enough.”

In the 32 – page report laid before the Senate last week but scheduled for consideration this week, 25 out of the entire 93 revenue generating agencies covered, were alleged to have defrauded the federal government the N1.7 trillion.”

The Committee in the report observed that Revenue Generating Agencies chose to comply with a directive via a memo dated 11’“November 2011 Ref. No. BO/RVE/12235/259/VII/201 of the last administration issued by former Minister of Finance,1)“ Ngozi Okonjo Iweala.

The directive allows generating agencies to remit 25% only from the revenue generated and use the remaining 75% as part of its expenditure in clear violation of section 1200) of the 1999 Constitution Of the FEM Republic of Nigeria (as amended) and also a violation of the Fiscal Responsibility Act 2007 and the Establishment Acts of some of these Institutions.

Other agencies involved in federal revenue loss are: Nigerian Television Authority (NTA) with under remittance of N5 5 billion, Corporate Affair Commission with under remittance of N2.9 billion, Bureau of Public Enterprise (BPE) with under remittance of -N70.5 billion, Sugar Development Corporation of Nigeria with under remittance of N5.5 billion.

Also, Nigeria Nuclear Regulatory Authority with under remittance of -N827 million, Nigeria Shippers Council With under remittance of N69 million, Nigeria Teachers Institute with under remittance of N984 million, federal Road Commission of Nigeria with under remittance of N1.2 billion, Nigeria Communication Commission with under remittance of -N47 billion and etc.

The report revealed that most the RGA denied the Auditor General of the Federation access to their financial books and records which contrary to the provision of section 125, subsection (3) a (i and ii) in subsection (4) of the 1999 Constitution of the Federal Republic of Nigeria (as amended).etc.

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