The FAAC has reported that revenue-generating agencies have failed to remit N4.1 trillion, highlighting a significant shortfall in expected financial contributions. This situation raises concerns about financial management and accountability within these agencies.
According to the Federation Accounts Allocations Committee, the amount of money that Revenue Generating Agencies have failed to remit to the Federal Government has risen to N4.1tn as at June 2024.
Despite the agencies’ reconciliation and payment of outstanding debts amounting to N94.96bn in May 2024, FAAC declared that this was still the case.
In comparison to the initial amount of $36,329,376.24 (N51.88bn) and N2,977,561,881021 noted in May 2024 is an unresolved sum totaling $16506771453 (N178.52bn) and N3 91734018069684 respectively.
The most recent revelation came to light in a report from the post-mortem sub-committee meeting of the Federation Account Allocation Committee. The report was endorsed by Mohammed Shehu, Chairman of Revenue Mobilisation, Allocation and Fiscal Commission.
The government’s records reveal that the Nigerian National Petroleum Company Limited is indebted in the sum of N940.62bn, while a total debt owed by both the Nigerian Upstream Petroleum Regulatory Commission and NNPC amounts to $23.81m and N1.94tn combined.
There is an outstanding remittance of $141.25m and N1.04tn between the Federal Inland Revenue Service, NNPC, as well as unresolved debts owed by the Ministry of Solid Minerals Development and the Central Bank of Nigeria in the amount of N48.75m.
The PUNCH had reported two months prior that the failure of revenue-generating agencies in Nigeria to reconcile unremitted earnings could result in a loss exceeding N3tn for the government.
The representative of the Post-Mortem Sub-committee Chairman, Kabir Mashi, who serves as Vice President informed during the meeting that reconciliation is still underway with relevant agencies regarding outstanding amounts. This update was provided on behalf of the committee’s Chairperson.
Allocations from the revenues generated are distributed by the Federation Account Allocation Committee into various accounts within the Federations Account that correspond to particular sectors or business types.
In the June meeting update, the chairman stated that after reconciling with Revenue Generating Agencies in 2024, there remains an outstanding sum totaling to $165,067,714.53 and N3,917,340,180,696.84 due to Federation Account.
During the monthly reconciliation meeting, he mentioned that they were still working on reconciling the outstanding amounts with relevant agencies.
The revenue reconciliation was carried out by the Nigerian National Petroleum Company Limited and the Nigerian Upstream Petroleum Regulatory Commission, he further stated.
According to the report, there was remarkable revenue generated for the Federation Account as a result of an inter-agencies reconciliation meeting that took place in June 2024. However, despite this positive development, there remained outstanding unresolved debts amounting to $165,067,714.53 and N3, 917 ,340 ,180 ,696.84 owed by Revenue Generating Agencies operating under the account.
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Evaluating the influence of FAAC PMSC on outstanding arrears pertaining to revenue inflows owed to the federation account.
The report states that the PMSC will inform the plenary about a reconciliation with Revenue Generating Agencies, resulting in $64,073,123.40 (equivalent to N94,964,537,885.84) being confirmed as paid to the CBN designated accounts by May 2024.
In five months, the government was able to retrieve a total of N537.35bn in accumulated debts as elaborated further in the document.
From January to May 2024, a total of N537,353,864,835.67 was reconciled and disbursed as outstanding arrears to the Federation Account.
Please take note that the reconciliation of these outstanding amounts is ongoing during monthly meetings between the sub-committee and agencies. Additionally, payments totaling $180,230,895.02 and N2,535,352,533 ,190.87 due from Revenue Generating Agencies before June 2023 have been referred to both Stakeholders Alignment Committee for further review while we await their outcome regarding the reconciliation process as soon as possible.
“The sub-committee is collaborating with the Revenue Generating Agencies to expedite payment of the aforementioned outstanding amounts into the Federation Account.”
The Commissioner of Finance for Kaduna State, Shizzer Bada expressed concern regarding the substantial accumulation of unpaid revenue arrears by RGAs against the Federation Account. This amount was reported to be running into trillions of naira between 2023 and 2024.
Consequently, she recommended that there be a hastening of the process to finalize reconciliation with Agencies.
