Reps demand details of CBN, NNPCL’s unremitted operating surplus

Nigeria's House of Representatives Public Accounts Committee (PAC) has directed the Office of the Accountant-General of the Federation (OAGF) to provide a comprehensive breakdown of outstanding operating surplus and other revenues allegedly owed to the Federal Government by key agencies, including the Central Bank of Nigeria (CBN) and the Nigerian National Petroleum Company Limited (NNPCL).

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The House of Representatives Public Accounts Committee (PAC) has directed the Office of the Accountant-General of the Federation (OAGF) to provide a comprehensive breakdown of outstanding operating surplus and other revenues allegedly owed to the Federal Government by the Central Bank of Nigeria (CBN), the Nigerian National Petroleum Company Limited (NNPCL), and other government agencies.

The committee also demanded explanations regarding allegations that the OAGF withdrew billions of naira from the accounts of several Ministries, Departments, and Agencies (MDAs), such as the Universal Basic Education Commission (UBEC), without timely refunds. These directives were issued during an investigative hearing attended by the Accountant-General of the Federation, Shamsudeen Babatunde Ogunjimi.

Hon. Gboyega Nasir Isiaka, a committee member, expressed concern over persistent revenue leakages and poor remittances by government-owned enterprises, identifying them as a significant challenge to Nigeria's fiscal sustainability. He emphasized the statutory requirement for these enterprises to remit a substantial portion of their operating surplus to the Federal Government, noting that many still have outstanding obligations.

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The committee also demanded explanations over allegations that the OAGF withdrew billions of naira from the accounts of several Ministries, Departments and Agencies (MDAs), including the Universal Basic Education Commission (UBEC), without timely refunds.

Responding to the committee's queries, the Director of Revenue and Investment in the OAGF, Makinde Mogaji, disclosed that the CBN alone is allegedly indebted to the Federal Government to the tune of N5.3 trillion in unremitted operating surplus. Despite the PAC's efforts to recover these funds, the apex bank has reportedly not complied with the remittance requirement. While some agencies, like the Federal Airports Authority of Nigeria (FAAN), have made substantial payments, compliance remains low among others.

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Despite statutory requirements for government-owned enterprises to remit a significant portion of their operating surplus to the Federal Government, several agencies still had outstanding obligations.

The Accountant-General explained that the OAGF's policy of automatic deductions from agency accounts was introduced as an advance recovery mechanism for operating surplus. He stated that this policy significantly boosted government revenue the previous year but faced resistance from some agencies seeking presidential intervention for reversals or reductions. Some agencies obtained approvals for cancellations or reductions, while others, including the NNPCL, have not cooperated with the implementation process, leading to ongoing disagreements.

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The CBN alone was allegedly indebted to the Federal Government to the tune of N5.3 trillion in unremitted operating surplus.