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Revenue agencies failed to remit N1. 6 trillion into Federation Account ― AuGF

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Revenue agencies fail to remit N1. 6 trillion into Federation Account ― AuGF
Auditor-General of the Federation, Mr. Anthony Ayine

Emma Ujah, Abuja Bureau Chief

The Auditor- General of the Federation, Mr. Anthony Ayine, has revealed how Revenue Agencies failed to remit the sum of N1. 555 trillion into the Federation Account in 2017.

This was contained in the Auditor-General’s Report of 2017, posted on the organisation’s website.

According to the report, “The total revenue inflows to the Federation Account from the various Collecting Agencies as per Central Bank of Nigeria (CBN) Component Statements for the period under audit amounted to ₦6.422 trillion.

READ ALSO: Ex-senate Chief backs NGF for revenue allocation formula review

Findings

According to the AuGF, from the total revenue of ₦2. 407 trillion payable to the Federation Account by Nigerian National Petroleum Corporation (NNPC), the corporation deducted the sum of ₦1.332 trillion for Joint Venture Cash Call (JVC) before paying the resulting net figure of ₦1. 075 trillion into the Federation Account.

He added that the Department of Petroleum Resources (DPR) collected the sum of ₦733. 054 billion but paid a net figure of ₦706. 283 billion to the Federation Account after deducting excess proceeds on Royalty of ₦26. 770 billion.

Similarly, a total amount of ₦2. 653 trillion was generated by FIRS for the period under audit. However, the actual amount paid into the Federation Account was ₦2. 457 trillion after deducting ₦196 .537 billion being the total excess proceeds on royalty.

CUSTOMS collection

According to the AuGF 2017 report, the Nigeria Customs Service (NCS) had a total collection of ₦628. 033 billion for the period under audit.

The breakdown of this amount showed Import Duty N531.795 billion; Excise Duty N 45. 630 billion; Fees N2. 133 billion; Penalty Charges N3. 565 billion CET Levy N48. 470 billion; Auction sales N3. 574 billion.

Mr. Ayine said that the practice of Revenue Agencies deducting revenues collected by the contravened the provisions of Section 162 (1) of the 1999 Constitution which stipulates, “The Federation shall maintain a special account to be called ‘he Federation Account’ into which shall be paid all revenues collected by the Government of the Federation.

“This has been a regular subject of my reports which has been ignored over the years.”

Recommendations

The AuGF, therefore, urged the Accountant-General of the Federation to “ensure that all deductions made at source contrary to Section 162 of the Constitution of the Federal Republic of Nigeria 1999 (as amended) are stopped.”

He added, “Any payment to be made from Federation Account Revenues should be made by the Federation Account Allocation Committee (FAAC) and not by any collecting Agency. Defaulting Agencies should be appropriately sanctioned.”

DPR failed to collect $3. 214 b from oil companies

The Department of Petroleum Resources in the year under review breached several legislative framework leading to loss of revenue, with outstanding amount in respect of royalty, rent, gas flare penalty and charges, among others amounting to $3. 214 billion or about ₦980. 277 billion, according to audit report.

According to Mr. Ayine, “Review of documents relating to outstanding royalty, gas flare penalty, gas sales royalty and concession rental due from Oil and Gas Companies showed that the sum of $3 .214 billion was not collected by DPR as and when due.

“Various Oil and Gas Companies had outstanding revenues for the year 2017. These oil Companies have failed to discharge their obligation to pay royalty, rent and other rates prescribed by Petroleum (Drilling) and Regulation, of 1969 and Petroleum Act 1969.”

Vanguard News Nigeria

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