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CBN, NNPC, NPA, Others Listed as Non-Remitting Agencies

10 Dec 2012

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By Chuks Okocha

As part of efforts to establish a revenue framework for the 2013 budget, the House of Representatives has listed the Central Bank of Nigeria (CBN), the Nigerian Maritime Administration and Safety Authority (NIMASA), the Nigerian National Petroleum Corporation (NNPC), Nigeria Ports Authority (NPA), Asset Management Corporation of Nigeria (AMCON) and National Pension Commission (PENCOM), among others, as some of the revenue generating agencies of the Federal Government that have failed to remit the revenue they generate to the government treasury.

According to the updated report put together by the House Committee on Finance this weekend and obtained exclusively by THISDAY, other agencies identified by the committee as major offenders include: the Federal Airports Authority of Nigeria (FAAN), Nigeria Export Processing Zone Authority (NEPZA), Nigerian Civil Aviation Authority (NCAA), Nigerian Communications Commission (NCC), National Examination Council (NECO), Standards Organisation of Nigeria (SON) and West African Examination Council (WAEC).

In its report titled, “Poor Remittance of Internally Generated Revenue to the Consolidated Revenue Fund (CRF) by Government Owned Agencies”, the committee further identified the agencies as those that submit their expenditure profiles with the aim of utilising the revenues they generate.
For instance, the report showed that details from the Budget Office of the Federation indicated that NNPC in 2012, budgeted N347 billion as operational income, and planned to spend N305 billion in the same fiscal year.

“In 2013, they projected an operational income of N626 billion, while planning to spend N618 billion.

“NPA revenue projections in 2012, was N106.27 billion, while its planned expenditure was N160.61 billion. In 2013, its budgeted revenue was N155.95 billion and planned expenditure was N134.92 billion.

“CBN revenue projections for 2012 was N242.05 billion, while planned expenditure was N211.90, and in 2013, budgeted revenue was N445.95 while planned expenditure has been put at N334.48 billion

“FAAN’s revenue projections for 2012 was N39.60 billion while planned expenditure was N36.23 billion, and in 2013, projected revenue was estimated at N48.78 billion, while its planned expenditure is N48.78 billion,” the report showed.

The House committee observed that the listed revenue generating agencies have refused to appear before it, stating that their action was against the dictates of the Fiscal Responsibility Act, which allows revenue generating agencies to retain 75 per cent of their operations and remit 25 per cent of their gross collections to the treasury.

According to the report, “Performance for the fiscal year 2011 showed that of the 36 agencies, it was discovered that N125.6 billion was generated and only N11.8 billion or 9.41 per cent was remitted to the treasury as operating surpluses or dividends.”

The report added: “It is important to note that majority of this internally generated revenue of government is not captured in the revenue framework as submitted by the Federal Ministry of Finance.”

The report also took note of the Bank of Industry (BoI) for failing to make any remittance to the Consolidated Revenue Fund (CRF) of the Federal Government. It said that the revenue projections for BoI in 2012 was put at N636.271 million and was expected to remit to the CRF the sum of N159.067 million, but not a single kobo was remitted in the year under review.

Similarly, the Corporate Affairs Commission (CAC), in its projected revenue of N6.7 billion, failed to remit the expected N1.7 billion to the government treasury.

The House, in the report that would be submitted this week for debate at plenary, said that despite the Tertiary Education Trust Fund’s (TETfund) projected revenue of N10.9 billion and remittance of N2.7 billion, no single kobo was remitted to government coffers.

The report threatened to invite the Economic and Financial Crimes Commission (EFCC) to ensure that the defaulting agencies remitted the revenue to the CRF, stating that if the agencies remitted as and when due, funding for the 2013 budget would be made easier.

Tags: Nigeria, Featured, News, CBN

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