It is laudable that the National Economic Council (NEC) has ordered the Nigerian National Petroleum Corporation (NNPC) and other agencies to refund the unremitted revenues totaling N8.526 trillion to the Federation Account.
Apart from the NNPC, other revenue generating agencies affected by the order include the Nigeria Customs Service (NCS), the Nigeria Ports Authority (NPA), the Nigerian Maritime and Safety Administration (NIMASA), the Nigerian Petroleum Development Company (NPDC), a subsidiary of the NNPC, and the Federal Inland Revenue Service (FIRS).
The unremitted amount covers under-payment of revenue to the Federation Account from 2010 to 2015. The directive is the outcome of an audit into the affected agencies by auditing firm, KPMG and the adoption of its recommendations by the National Economic Council, chaired by Vice President, Prof. Yemi Osinbajo. It will be recalled that government had in August 2015, amid suspected reports of revenue leakages, constituted an ad hoc committee to audit some of its agencies allegedly remitting dollar revenue in naira.
The Chairman of the ad hoc committee and governor of Gombe State had while briefing journalists on the outcome of the NEC meeting, said that the auditing of the agencies has been extended to cover the period from 2015 to 2017, even as the KMPG technical report covering 2010- 2015, was damning enough.
The decision to order the affected revenue generating agencies to refund the various amounts was at the request of the Finance Minister, Mrs. Kemi Adeosun, a member of the NEC and was unanimously accepted by the council. The council consists of the governors of the 36 states of the federation, the minister of the Federal Capital Territory (FCT), the governor of the Central Bank of Nigeria (CBN) and the minister of finance.
The failure to remit any government revenue to the Federation Account is a gross violation of Section 162 (1) of the 1999 Constitution. The section created “the Federation Account” into which shall be paid all revenues collected by the Government of the Federation, except the proceeds from the personal income tax of the personnel of the armed forces of the Federation, the Nigeria Police, the Ministry or department of government charged with responsibility for Foreign Affairs and the residents of the Federal Capital Territory, Abuja.
It is heartening that NEC will soon set up a sub-committee as its legal arm that will look into the details of the infringements and find out whether they are criminal in nature or not that may have been committed by these agencies and possible prosecution by the Office of the Attorney General of the Federation. It is time to rein in the agencies that have violated the laws of the land. That is one sure way to ensure that the malfeasance does not occur again.
It is not tidy that the NNPC is among the agencies involved in under-remittance of revenue to the Federation Account. The corporation must show example for other agencies to follow by promptly remitting government revenue in its coffers. It is heartening that Nigerians are aware of how these revenue generating agencies are denying government access to much needed funds that should be invested in many development projects that will improve the lives of the citizens.
The reported N8.5trn unremitted revenue is almost equal to the 2018 budget. Government should ensure that the affected agencies refund the money into the Federation Account as ordered by NEC without further delay.
Henceforth, the Auditor-General of the Federation must ensure strict compliance with the remittances of public accounts of all government statutory corporations, commissions, authorities, agencies, including all persons and bodies established by the Act of the National Assembly as provided in Section 85(4),(5) (6) of the 1999 Constitution.