Nigeria News

NIGERIA: Reps query CBN, others over missing N7.935bn

CBN Gov, Sanusi LamidoThe house of Representatives yesterday queried  the Central Bank of Nigeria (CBN), Federal Inland Revenue Service (FIRS) and Nigeria Customs Service (NCS) over  discrepancies in the  remittance  of N7.935 billion generated by the Nigerian Customs Service to the Federation Account in 2007.

These queries  were issued  by Chairman of the Public Accounts Committee of the House, Solomon Adeola Olamilekan, during an  investigative hearing.

The committee also queried the  five month delay in the remittance of the sum of N14.210 billion being import duties collected and lodged into CBN branch in Port Harcourt by the Customs Area Command same year.
The revenue was said to have been collected  in August 2006 but was not transferred to the Federation Account until January 2007.

Olamilekan further said audit examination of the records maintained for the Federation Account at the Nigeria Customs Service revealed that the total amount generated and remitted by the service for the year 2007 was N233.430 billion, while total amount received by FAAC from NCS was N241.366  billion, resulting in a discrepancy of N7.935 billion.

According to him, “ this implies that the actual amount of revenue generated and remitted by the NCS was less than the amount presented to FAAC for sharing. “

Olamilekan further directed the  acting chairman of the FIRS, Alhaji Mashi, deputy governor of CBN (operations), Tunde Lemo, AGF, Jonah Otunla, to work with a sub-committee led by Pally Iriase to reconcile the differences and report back on Wednesday.

FIRS acting chairman had earlier told the committee that both the FIRS and CBN had reconciled on the N582 million difference and discovered that it was only N261 million that resulted from a double entry error.

Other queries expected to be addressed by the CBN include the N124. 673 million allegedly deducted from the Federation Account, but the details of the disbursement of the funds were not made available for audit examination.

The CBN is to also explain the States’ Contractual Obligation account in which the sums of N210 million and N13.341 million were paid in the months of March and April, 2007 respectively as contractual Obligations to a contractor by the order of the Governor of Anambra State.

The Committee chairman further disclosed that at the Office of the Accountant-General of the Federation, it was observed from the component statements of 2007 that Joint Venture Cash Calls (JVC) totalling  N549 billion  of  excess crude sales,  out of the sum of N1.168 trillion and Petroleum Product Subsidy of the sum of N236.641 billion were deducted from proceeds of crude oil sales.

He further said that theses deductions were made before the net revenues were paid to the Federation Account contrary to the provisions of Section 162(1) of the 1999 Constitution of the Federal Republic of Nigeria which requires all such revenues to be paid directly into the Federation Account.

Other queries expected to be addressed by the CBN include the N124. 673 million allegedly deducted from the Federation Account and described as “Funding of FAAC” but the details of the disbursement of the funds were not made available for audit examination.

The CBN is to also explain the States’ Contractual Obligation account in which the sums of N210 million and N13.341 million were paid in the months of March and April, 2007 respectively as contractual Obligations to a contractor by the order of the Governor of Anambra State.

The chairman said “This payment is contrary to the provisions of sections 162 (1), 162(3) and 120(3&4) of the Constitution of the Federal Republic of Nigeria, 1999. The Accountant-General of the Federation has been informed of this irregular payment from the Federation Account, and he was advised to ensure that -henceforth payment of Contractual obligations from the Federation Account should cease.

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