News

Senate uncovered Okonjo-Iweala memo that ruined government revenue

Published

9 years ago

October 24, 2017

The Senate Ad Hoc Committee on Alleged Misuse, Under-Remittance and Other Fraudulent Activities has discovered how revenue agencies short-changed the federal government to the tune of N1.7tn in unremitted revenue generated between 2012 and 2016.

And the culprit is former Finance Minister Ngozi-Okonj Iweala.

She issued a memo November 11, 2011 to the agencies to remit 25 per cent of revenue they generated to the Federal Government and spend 75 per cent on their expenditures.

In an interim report by the committee chaired by Senator Olamilekan Adeola, the panel said the amount to be remitted to the Federal Government during the period by 93 agencies it investigated was N21.5tn.

No fewer than 25 of them defrauded the government of a total of N1.7 tr.

The memo is a clear violation of Section 120 of the 1999 Constitution of the Federal Republic of Nigeria (as amended) and the Fiscal Responsibility Act 2007 as well as the establishment acts of some of these institutions.”

The panel said the Nigerian National Petroleum Corporation, which spent about N18 trillion of the over N15 trillion it generated, ran at a deficit of N3.1tn, while the Nigeria Customs Service, which generated N335.855bn, failed to remit N83.963bn during the period under review.

The report also indicted the Federal Inland Revenue Service, which generated N455.5bn but allegedly failed to remit N33.83bn.

Also, the Nigerian Ports Authority reportedly remitted N86.636bn to the Consolidated Revenue Fund when it generated N789.104bn.

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Others indicted by the panel are the Central Bank of Nigeria, remitting N13.716bn out of N3.098tn; NIMASA, N184.489bn out of N301.160bn; Nigerian Television Authority, N5.567bn out of N56.817bn.

To worsen it, “Most of the revenue generating agencies, : the report says, “denied the Auditor General of the Federation access to their financial books and records, which is in conflict with Section 125, Subsection (3) a (i and ii); and Subsection (4) of the 1999 Constitution of the Federal Republic of Nigeria (as amended).

Recommending, the panel said the Senate should amend the laws where necessary to make it mandatory for all revenue generating agencies to accommodate resident auditors to be posted by the Auditor General of the Federation that will have access to all financial records and books, and to ensure compliance with Section 120(i) of the 1999 Constitution of the Federal Republic of Nigeria (as amended).

“The Fiscal Responsibility Act should be amended in a way to compel all agencies and institutions of government on compliance with financial regulations regarding income generation, accounting and remittances.