Four revenue-generating agencies, including the Nigerian National Petroleum Corporation (NNPC), the Federal Inland Revenue Service (FIRS) and the Department of Petroleum Resources (DPR), failed between them to remit roughly N1.5 trillion to the federation account in 2017, an audit report from the office of the Auditor General of the federation revealed Wednesday.
In percentage terms, the amount in question represents 23.44% (nearly a quarter) of the entire N6.4 trillion generated by government’s revenue collection agencies in 2017.
According to the 320-page report, the N1.5 trillion was deducted approval in breach of constitutional provisions.
Specifically, NNPC generated N2.41 trillion in the period under review from which it deducted N1.3 trillion before transferring the remaining N1.07 trillion to the federation account.
On its part, the FIRS remitted N2.45 trillion out of the N2.66 trillion it generated. Out of the N733.05 billion the DPR generated, the report confirmed it paid N26.77 billion to a royalty account while the rest N706 billion was transferred to the federation account.
Anthony Ayine, the nation’s Auditor General who signed the report, lamented that the illegal deductions had put paid to the efforts to fund the three tiers of government effectively.
Mr Ayine advocated that deduction from source, a violation of Section 162 of the 1999 constitution, be stopped, calling on the Accountant General of the Federation, Ahmed Idris, to do so. Moreover, he prescribed sanction for the erring agencies as a measure for checking recurrence.
“The total revenue inflows to the federation account from the various collecting agencies as per the Central Bank of Nigeria component statements for the period under audit amounted to 6,422,596,646,680.26.
“Department of Petroleum Resources collected the sum of 733,054,301,173.04 but paid a net figure of 706,283,397,141.80 to the federation account after deducting excess proceeds on royalty of 26,770,904,031.24.
“The total amount of 2,653,810,173,226.72 was generated by the FIRS for the period under audit; however, the actual amount paid into the federation account was 2,457,272,701,077.09 after deducting 196,537,472,149.63 being the total excess proceeds on royalty.
“These collecting agencies made deductions from the revenue collected by them. This act contravenes the provisions of Section 162 (1) of the 1999 Constitution which stipulate that ‘The federation shall maintain a special account to be called the 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,” the report read.
- NSE: Investors lose N119 billion to intense profit-taking - June 15, 2020
- Oil prices fall over worries of new wave of coronavirus, Bonny Light gains 0.03% - June 15, 2020
- Naira appreciates against dollar at parallel market - June 10, 2020