Revenue generating agencies fail to remit N36bn to consolidated account

| February 1, 2013 | 0 Comments

Revenue generating agencies of the federal government have failed to remit a N35.6 billion operating surplus due to the consolidated revenue account in 2012, BusinessDay has gathered.

The amount is part of N43.9 billion or 25 percent operating surplus expected to be remitted to the account by 37 revenue generating agencies of which only N8.7 billion has so far been remitted. The outstanding amounts are still being withheld despite government directives ordering its remittance.

Federal revenue generating agencies are required to remit annually, part of their operating surpluses from their internally generated revenue (IGR) to the consolidated revenue fund of the federal government.  They are given target annually on IGR and which the government expects some returns on the excess generated.

In respect of the outstanding remittances there are three categories of revenue agencies involved. They are those that have refused to remit and are owing N2.95 billion, those that are seeking exemption and who owe N18.8 billion and those that have partly remitted but have N13.8 billion outstanding.

The amount according to government sources is exclusive of 2011 figures which have not been computed yet except that of Nigerian Aviation Management Authority (NAMA) which has a 2011 outstanding figure of N3.055 billion.

Nigeria National Petroleum Corporation’s (NNPC) figure could not be computed and is to be investigated separately. The investigation is necessary to know the revenues that come in from its subsidiaries scattered in the country and abroad.

Although Federal Inland Revenue Service (FIRS) has presidential approval to keep 20 percent cost of collection on its IGR, there are other income streams found in its audited account for which details are required.

The finance ministry and the presidency, BusinessDay was told are not keen about its recovery as the money comes handy for presidency officials, supervising ministers, permanent secretaries and director-generals of the agencies for personal and political patronages.

Coordinating minister of the economy and finance minister, Ngozi Okonjo-Iweala, had in 2011 issued directives to all federal revenue agencies, ordering them to remit annually 25 percent of their operating surpluses to the consolidated revenue account.
The directive came as a result of the continued refusal of government agencies to disclose fully their internally generated revenue (IGR).

Government sources told BusinessDay that N177.076 billion was internally generated by the 37 revenue agencies as at October 2012. Of this, N43.4 billion is due to the consolidated account being the 25 percent operating surplus.  BusinessDay investigation shows that only N8.3 billion was remitted as at that date while N35.6 billion is still locked in the agencies’ accounts.

Analysts observed that this is one of the ways by which corruption is fuelled. It also explains why the federal government treasury single account (TSA) project is being frustrated. The TSA is a unified structure of government bank accounts seen as the most effective mechanism for dealing with corruption in cash management in ministries and agencies.

The N35.6 billion, they argued could have done a lot in replacing the dilapidated infrastructure across the country.

The consolidated revenue account is a statutory fund to finance annual budget and other statutory expenditure of the federal government. It is under the direct supervision of the Finance minister, Okonjo-Iweala.

Agencies that have refused to remit the 25 percent operating surplus are Federal Radio Corporation of Nigeria FRCN which is owing N318.6 million; NASENI  N21.6 million; News Agencies of Nigeria (NAN) N22.8 million; NAMA N2.6 billion and NIGCOMSAT N619,948.51.

Agencies that are seeking exemption from Finance ministry to avoid remitting the 25 percent operating surplus are Joint Admission and Matriculation Board (JAMB) which owes N1.4 billion, Corporate Affairs Commission (CAC) which owes N2.02 billion, and Industrial Training Fund (ITF) owing N4. 01billion.

The list also includes NEXIM owing N748.7 million, Nigerian Shippers Council owing N6.4 million, Federal Mortgage Bank owing N300.3 million, Nigeria Automotive Council N105.8 million; Nigeria Agricultural Insurance Corporation (NAIC) N274.2 million; West African Examination Council (WAEC) N2.3 billion, and Lagos International Trade fair complex N3.7 million.

Others are National Inland Waterways N212.5 million, National Pension Commission (PenCom) N926, 129.19 and NIMASA N7.4 billion.

The last category is those that remitted part of the 25 percent operating surplus but still have outstanding to pay up. They are Financial Reporting Council N61.9 million, Nigeria Deposit Insurance Corporation (NDIC) N8.8 million, NiPOST N784.7 million, NEPZA N5.01 million, NTA N873.8 million, and NAFDAC N1.01 billion.

Others are TETFUND N1.8 billion, Nigerian Broadcasting Commission N211.6 million, National Film and Video Censors Board N2 million, National Insurance commission (NAICOM) N610.3 million, National Office of Technological Acquisition N50.5 million, Nigeria Communication Commission (NCC) N744.1 million, National Teachers’ Institute N129.6 million and Nigeria Nuclear Regulatory Authority N16.9 million.

The list also includes Nigeria Copyright Commission, N3.7million, Standard Organisation of Nigeria N252.7million, Nigeria Sports Commission N3.7 million, Nigeria Railway N203.7million and Federal Aviation Authority of Nigeria (FAAN) N6.97 billion.

Culled from :Here

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