According to the Post-Mortem Sub-Committee (PMSC) of the Federation Account Allocation Committee (FAAC), revenue-generating agencies associated with the FAAC have not remitted a total of N1.6 trillion to the Federation Account as of last month. This was disclosed during the latest FAAC meeting held in Abuja. The PMSC, led by former Executive Chairman of the Federal Inland Revenue Service (FIRS), Kabir Mashi, provided the details of the outstanding amounts owed to the Federation Account by these agencies.
The breakdown of the outstanding dues as of April 2023 is as follows: Nigeria National Petroleum Company Limited (NNPCL) owes $1,023,128,020.92 (equivalent to N1,439,662,970,681); FIRS owes $2,594,794.11 (or N193,141,126,020.64), and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) owes N339,676,365.01.
The FIRS attributed the delay in remitting some revenue to the Federation Account to an agreement between the NNPCL and International Oil Companies (IOCs) regarding remittances. Mr. Johannes Tobi Wojuola, the Special Assistant on Media to the FIRS Chairman, emphasized that the nature of the collection process of the FIRS ensures that there are no instances of non-remittance. All taxes collected by the FIRS are paid directly by taxpayers into the designated Central Bank of Nigeria (CBN) Federation Account.
The non-remittance of these substantial amounts by the revenue-generating agencies has raised concerns about the financial implications for the Federation Account and the overall budgetary plans. The FAAC assembly, through the PMSC, will continue to engage with these agencies to ensure timely and complete remittance of the outstanding revenue.
Experts say it is important for revenue-generating agencies to fulfill their obligations and promptly remit the allocated funds to the Federation Account as this will ensure the effective implementation of government programs and the smooth running of public services across the country.
