Public accounts committee accuses CBN and commercial banks of jointly distributing VAT through Remita

The House of Representatives’ public accounts committee accused the Central Bank of Nigeria (CBN) and commercial banks of colluding to share the revenue generated from Value Added Tax paid on Remita by customers during an investigative hearing in Abuja.

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Chairman Bamidele Salam alleged that the CBN and the Office of the Accountant General of the Federation illegally paid about N15 billion to Remita without a formal contract.

The committee also cautioned the chairman of the Federal Inland Revenue Service (FIRS) against disregarding their invitations, stating that such actions amount to contempt of parliament.

Salam questioned the payment of N15 billion to Remita by the Office of the Accountant General for the Federation (OAGF) from 2016 to 2018, highlighting the lack of agreement or contract for the payments.

Salam emphasized the illegality of the payments, pointing out the absence of budget provisions for the transactions.

He raised concerns about the sharing of VAT between System Spec, Remita, banks, and the CBN, stating that the process deviates from the standard procedure where VAT should go to the FIRS.

The committee aimed to reconcile discrepancies in the revenue sharing process to uncover potential financial irregularities.