Business
Tension as govt perfects plans to begin probe of banks’ activities
The Presidency may have authorized the Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) to constitute an audit panel to probe the accounts of all 23 banks in Nigeria following allegations of non remittance of taxes collected, among other defaults.
Reports say the Federal Government is expected to rake in about N3.5 billion at the end of the probe, which already has 10 international auditing firms hired for the exercise.
It was gathered that records available showed that most of the commercial banks were not paying proper taxes to government and are also involved in a number of shady transactions, which have denied the government some revenue.
Though most bank headquarters have remained busy, an insider said most of the management teams of the banks had remained edgy over what might be the outcome of the probe.
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“Some of the ongoing investigations of government functionaries by the EFCC is said to have identified most of the banks with some unwholesome activities, leading to cover up of some illicit deals by the indicted officials, so the sector is under our searchlight,” a top official disclosed.
The RMAFC official alleged that the exercise, covering July 2012 to December 2015 period, is to unravel, if any, the actual duties and taxes that the banks had collected from their customers, but refused to remit to government coffers.
It was also learnt that the audit firms had a period of six months to submit their report to the Federal Government.
It would be recalled that the Federal Inland Revenue Services (FIRS) boss, Babatunde Fowler, had in August 2016 alleged that some of the revenues from taxes, levies and duties supposedly collected by banks for all the revenue agencies, including the Nigeria Customs Service and the Department of Petroleum Resources, were usually not up to projection.
A Presidency source, justifying the exercise said this is not new to the bankers as similar exercise was carried out between January 2008 and June 2012.
It was said to have revealed that the banks had failed to remit about N12.5 billion, being outstanding taxes and duties collected on behalf of the revenue collecting agencies.
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Roland Uchendu Pele
December 16, 2016 at 1:28 pm
Even on Customers’ end, there is tension. No commercial bank in Nigeria will survive this probe without at least 24-count charges!
Margret Dickson
December 16, 2016 at 2:08 pm
Mr President is taking important steps to making sure things get back in order. So many banks are full of illegal acts, it is important to probe the banks.
Amaka Okoro
December 17, 2016 at 5:18 am
So you still believe in your president. Well keep believing and waiting
Johnson Amadi
December 16, 2016 at 2:15 pm
This is becoming very interesting and historic. I’m sure if the probe goes very fine, the money that will be recovered will be more than N3.5bn
JOHNSON PETER
December 16, 2016 at 9:57 pm
Why can’t be make our banks public as in government owned banks so they won’t be able to shun tax.
yanju omotodun
December 17, 2016 at 4:51 am
That will be socialist ideology where government owns everything in the nation. It is the best ideology but Nigeria will never subscribe to it.
seyi jelili
December 17, 2016 at 4:58 am
Socialism is a Karl max ideology which is the best for country if we must say the truth. This ideology made Russia and China better countries today. Government should control all means of production and share wealth according to someone’s ability and needs.
Balarabe musa
December 17, 2016 at 5:00 am
Useless banks will never forget to deduct customers money all in the name of ATM card maintenance, SMS charges and so many illegal ways of deducting customers’ money and there they are evading tax to the government.
Emmanuel Alayegbami
December 17, 2016 at 5:03 am
You are right. That’s why so many Nigerians launched into mmm where they put money and earn big interest after a month. Government should close down any bank found wanting of evading tax. But if it is Uba Bank, government should not close it until I withdraw all my money.
Amarachi Okoye
December 17, 2016 at 5:11 am
Hahahah are you saying this because of your own interest or for other people interest and urs.if government should close uba. That means our government should put an end to mmm