The Senate ad-hoc committee on alleged misuse, under remittance and other fraudulent activities in collection, accounting, remittance and expenditure of Internally Generated Revenue (IGR) has exposed over N1.695 trillion unremitted funds by federal government agencies.
The nine member committee headed by Senator Olamilekan Solomon Adeola, in its interim report submitted to the Senate on October 19th, 2017 said that 26 agencies generated a total of N21, 909,831,657,897 between January 2012 to December 2016.
Out of the amount, the committee said that a total of N1.695, 585,887,406 was not remitted to federal government account by the agencies within the period.
It said that the Nigeria National Petroleum Corporation (NNPC) operated a deficit account of N3, 115,495,257,000,000 within the period.
A total of 93 agencies came under the search light of the committee.
All the federal universities, all federal colleges of education, all federal cooperative and agricultural colleges, federal science and technical colleges, all federal government colleges and others were also scrutinized.
For instance, the committee observed that the Nigeria National Petroleum Corporation (NNPC) generated N15, 541,690,052,000,000 within the period and recorded a deficit of N-3,115,495,257,000,000.
The implication of the figure for the NNPC is that it operated at a loss within the period under review.
The Nigerian Television Authority (NTA) recorded N56, 817,976,306.00 as generated revenue within the period; its total under remittance was N5, 567,831,176.00.
The Corporate Affairs Commission (CAC) generate N56, 319,706,498.83, itโs under remittance was recorded as N2, 907,940,808.00.
The Bureau of Public Enterprise generated N479, 115,404,000.00 and recorded under remittance of N70, 485,698,800.00.
The Sugar Development Corporation of Nigeria generated N16,258,122,423.14 and recorded under remittance of N5,595,130,103.10
Securities and Exchange Commission generated N30, 229,951,000.00. Itโs under remittance was not stated.
The Nigeria Customs Service generated N335, 855,575, 759.53 within the period under review and recorded under remittance of N83, 963,893,939.88 within the period.
It also said that 25 percent revenue of the Nigeria Customs Service was not reported.
The committee said that the Nigeria Electricity Commission generated N25, 422,019,784.70 and had under remittance of N20, 319,552,361.75.
Nigeria Nuclear Regulatory Authority generated N4, 663,198,042.93 and had under remittance of -827, 489, 066.14
The committee explained that 25 per cent revenue paid into the Consolidated Revenue Fund while the remaining expenses were over bloated.
The Federal Airport Authority of Nigeria generated a total revenue of N227, 301, 592,242.00, its under remittance was put at N19, 242,300,027.30
Thee Nigeria Shipper Council made N25, 405,401,068.82 with failed to remit N69, 322, 017, 22
The Federal Inland Revenue Service generated N445, 544,388,514.54 and failed to remit N33, 833,232,873.33.
The Nigeria Teachers Institute generated N13,163,057,006.78 and failed to remit N984,013,375,39 while the Federal Radio Commission of Nigeria generated N6,954,353,171.59 and recorded under remittance of N1,211,179,042.40.
The Petroleum Products Pricing Regulatory Agency generated N11,560,619,050.20, remitted N1,965,574,296.76 and failed to remit N1,778,116,748.16.
The committee said that PPPRA partially paid 25 per cent of its revenue while it over bloated the remaining expenses.
The Committee said that the Nigerian Maritime Administration and Safety Agency generated total revenue of N301, 160,118,548.47 and recorded under remittance of N184, 489.203, 618.25.
It said that the National Health Insurance Scheme generate nil revenue (2012-2014), made a total expenditure of N680, 918,000, total remittance while its under remittance was put at N6,144,,734,400.00.
The committee said that the Nigerian Communication Commission generated N217, 104,325,000.00 and recorded -47,373,814,269.18 under remittance.
The committee also said that the Nigeria Ports Authority (NPA) generated N789, 029,440,000.00 and had under remittance of N86, 636,886,800.00
It said that the Joint Admissions and Matriculation Board (JAMB) generated N49, 157,057,019.00 and recorded under remittance of N636, 095,144.18
The Central Bank of Nigeria (CBN) was recorded to have generated N3, 098,157,000,000.00 and recorded under remittance of N13, 716,755,284.00.
The Nigeria Bulk Electricity Company generated N1, 320,039,182.02 and recorded under remittance of N644, 045,677.73.
The committee recommended that the Senate should amend the laws where necessary โ That the Senate should amend the laws where necessary 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, and to ensure compliance with section 120(i) of the 1999 Constitution of the Federal Republic of Nigeria (as amended).
โThe 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.
โThat the Senate should also amend .the laws where necessary to make it mandatory for all revenue Generating Agencies to accommodate resident Treasury Officers to be posted by the Accountant General of The Federation that will have access to all financial records and books.
โThe National Assembly should direct the immediate stoppage of the implementation of the contents of the Memo by the former Minister of Finance and Agencies and institutions should adopt the new mode of remittances as approved by the Senate.
โThe Fiscal Responsibility Act (2007) should further be amended to make all Revenue Generating Agencies to pay 30% of their income generated monthly to the Consolidated Revenue Account before any expenditure.
โEqually, the operational modalities of certain Agencies or services rendered could not permit serious revenue generation, like the hospitals and Educational Institutions, thus, they should be exempted from Agencies expected to make money available to the CRF except where there is surplus declared.
โThe Federal Government should strengthen the Revenue Generating Agencies with manpower and qualitative staff to fill in the gaps needed for a viable workforce and revenue generation.
โWhere Agencies of Government have the capacity to carry out certain functions/activities, as in the case of Nigeria Immigration Service, such functions/activities should not be contracted out to consultants: Therefore, the Nigeria Immigration Serviceโs contracts be revoked.
โRelevant Committees of the Senate should look into some of these Agencies and their expenditure profile with the view to instilling prudent financial management and accountability.โ
The report is slated for consideration this week.
