Revenue Generating Agencies fail to remit N4.1tn to govt ―FAAC says

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Monies unremitted by Revenue Generating Agencies (RGA) to the coffers of the Federal Government increased to N4.1tn as of June 2024, the Federation Accounts Allocations Committee (FAAC) has said.

FAAC stated that this was despite the agencies’ reconciliation and payment of outstanding debts of N94.96bn in May 2024.

According to Punch, the unresolved amount is $165,067,714.53 (N178.52bn) and N3,917,340,180,696.84, compared to the initial amount of $36,329,376.24 (N51.88bn) and N2,977,561,881,021 recorded in May 2024.

The latest development was disclosed in a report by the Federation Account Allocation Committee post-mortem sub-committee meeting and signed by the Chairman of Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC), Mohammed Shehu.

A breakdown of the agencies indebted to the government showed that the Nigerian National Petroleum Company Limited (NNPCL) owes N940.62bn; Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and NNPC owe a combined amount of $23.81m and N1.94tn.

The Federal Inland Revenue Service and NNPC have an unresolved remittance of $141.25m and N1.04tn, while the Ministry of Solid Minerals Development and the Central Bank of Nigeria owe N48.75m.

Punch reported two months ago, that the government could lose over N3tn if revenue-generating agencies in the country do not reconcile unremitted earnings collected.

Vice President of the Post-Mortem Sub-committee, who represented the committee Chairman, Kabir Mashi, at the meeting, said the outstanding amounts were still being reconciled with the relevant agencies at the monthly reconciliation meeting.

The report read: “Outstanding Federation Account Revenue Arising from Inter-Agencies Reconciliation Meeting held in June 2024: The total unresolved amount due to the Federation Account from the reconciliation meeting held with the Revenue Generating Agencies in June 2024 was $165,067,714.53 and N3,917,340,180,696.84.

“Assessing the impact of the FAAC PMSC on outstanding arrears of revenue inflows due to the federation account.

“For May 2024, the PMSC would like to inform the plenary that as a result of reconciliation with Revenue Generating Agencies, a total sum of $64,073,123.40 equivalent to N94,964,537,885.84 was reconciled and confirmed paid to the CBN designated accounts,” the report added.

“The cumulative outstanding arrears reconciled and paid to the Federation Account from January to May 2024 stood at N537,353,864,835.67.”

“Members should note that these outstanding amounts are still being reconciled at the monthly reconciliation meetings between the agencies and the sub-committee. Furthermore, the sum of $180,230,895.02 and N2,535,352,533,190.87 outstanding payments from the Revenue Generating Agencies before June 2023, were referred to the Stakeholders Alignment Committee and the Sub-Committee awaits the outcome of the reconciliation soonest.

“The sub-committee is working with the Revenue Generating Agencies to ensure that the above outstanding amounts are paid to the Federation Account as soon as possible.”

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