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FG orders govt agencies to return excess operational fund

By Emma Ujah

ABUJA—Faced with persistent decline in oil revenue, the President Umaru Yar’Adua administration has directed Federal Government agencies and corporations considered as rich, to henceforth, pay 80 per cent of their operational surplus into the Consolidated Reserve Fund.

The Minister of Finance, Dr. Mansur Muhtar told a Budget Consultative Forum in Abuja, at the weekend that a circular to that effect had been issued to the agencies which included the Central Bank of Nigeria (CBN), Nigerian National Petroleum Corporation (NNPC), Nigeria Deposit Insurance Corporation (NDIC) and Nigeria Ports Authority (NPA).

Others affected by the directive were: the Federal Inland Revenue Service (FIRS), Bureau for Public Enterprises (BPE), Corporate Affairs Commission (CAC), Federal Airport Authority of Nigeria (FAAN), Securities and Exchange Commission (SEC), NITEL, NAFDAC, Nigeria Reinsurance, National Maritime Authority, Nigerian Customs Service and Nigerian Insurance Trust Fund.

With the exception of the FIRS, and lately NITEL, the organizations generate huge income from their operations, annually, but usually spend such earnings owing to their non-classification as revenue agencies of the Federal Government.


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