Reps probe CBN, NNPCL over unremitted operating surplus

Nigeria's House of Representatives Public Accounts Committee has intensified its probe into revenue remittances by federal agencies, demanding a comprehensive accounting of outstanding operating surplus and other funds allegedly owed to the government by the Central Bank of Nigeria (CBN) and the Nigerian National Petroleum Company Limited (NNPCL).

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Considering our GDP, ours is one of the lowest on the continent, at about 16 per cent. Business entities are expected to return about 80 per cent of their operating surplus, while others remit between 20 and 50 per cent.

The committee has directed the Office of the Accountant-General of the Federation (OAGF) to submit a detailed report on these alleged shortfalls. Furthermore, the OAGF faces scrutiny over claims that it deducted funds from the statutory accounts of various Ministries, Departments, and Agencies (MDAs). A reported withdrawal of N15 billion from the Universal Basic Education Commission (UBEC) has particularly raised concerns about the agencies' capacity to fulfill their mandated functions.

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From everything we are seeing, there still appears to be a backlog of remittances. Can you provide some figures? Beyond that, as a member of the economic management team, how satisfied are you with the performance of agencies such as the CBN, SEC, NIMASA and others, considering the scale of assets they manage?

During an investigative hearing, lawmakers expressed alarm over Nigeria's persistently weak revenue performance, attributing it partly to poor remittance compliance. Gboyega Isiaka, a committee member, highlighted that Nigeria's revenue as a percentage of GDP is among the lowest in Africa. The committee is questioning the declared surpluses of entities like the CBN, urging a thorough examination against the assets they manage and potential revenues they have failed to remit. The Director of Revenue and Investment at the OAGF disclosed that the CBN alone allegedly owes the Federal Government N5.3 trillion in unremitted operating surplus, with previous recovery efforts proving unsuccessful.

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It is not enough to say they remitted 80 per cent of their surpluses. What exactly is the surplus they are declaring? We need to examine that against the assets under their control, as well as the revenues they ought to have paid but have not.