NPA, CAC others are defaulting in remitting to treasury, says RMAFC.

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Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) on Monday said several revenue agencies including the Nigeria Ports Authority (NPA), and the Nigeria Communication Commission (NCC) amongst others are not remitting into the federation account.

Others are the Corporate Affairs Commission (CAC) and the Nigeria Maritime Administration and Safety Agency (NIMASA).

“They are supposed to remit their generated revenue to the Federation Account but are yet to comply” said Chairman of the RMAFC, Elias Mbam who said the commission recovered over N704.2 billion during his five-year that has just ended.
“NPA, NIMASA and NCC are supposed to generate money for the federation, because they use federation assets for the process through which they generate money”.

“Take for instance, the NPA, they are using the body of water. Body of water is not for the federal government. It’s a national asset. So the money they generate should be for the nation, for the three tiers of government, the same thing with NCC. They give licenses for using the air. Does any state own the air? It is for the nation. So those agencies that generate money using our national assets should be owned by the federation.”
He expressed concern that revenue from Stamp Duties in respect of electronic transfer running into billions of Naira “is not being remitted to the Federation Account. As a result, billions of Naira are being lost on a daily basis. I am happy to report that the process of correcting these anomalies has reached an advanced stage. Revenue from stamp duty is now generated and paid to the federation account. You know we have a clearing system where all transactions, electronic transactions go”

The stamp duty he said has a fee, “whenever you enter any kind of agreement. So when there is a transfer, you are supposed to pay your tax on that and that should be paid to the federation account but up to date there is no record that shows that that is being done so we are tackling that and we have gotten the central bank and all other relevant agencies like the FIRS, the accountant general office, and we have reached advanced stage and certainly they will start contributing to the federation account.”

Mbam said the commission was opposed by the Nigeria Interbank Settlement System (NIBSS) which argued that the law establishing stamp duty did not reflect electronic transfers.

” I don’t think that is the right thing to say because if it doesn’t reflect, we are not operating a static system, we continue to improve. If it doesn’t reflect it and requires to be reflected before action is taken, I mean they know. But the important thing is that we are losing billions of Naira from that sector. You know the number of transactions that go on a day. If you pay fifty fifty Naira (#50) you will generate more than a hundred million in one day from that sector.”

For all the efforts of the commission during his five-year term, he noted that over N704.2 billion has been recovered into the federation account in the last five years, Revenue Mobilization Allocation and Fiscal Commission (RMAFC) has said.
” So far we have expanded the sources of revenue to the Federation Account, with recoveries of over N704.2billion been made, revenue leakages were addressed, Verification exercise is being carried out on the Collecting Banks and other Collecting Agencies. Generally, the Commission has addressed vigorously all its Constitutional Mandate.”

Chairman of the RMAFC, Elias Mbam could not mention the exact amount recovered but noted that “it is basically in all the generating agencies. A greater proportion is from NNPC. There are some from Central bank, there are some from FIRS. I don’t have the exact figure”.

The Commission periodically carried out monitoring and checks on the revenue agencies including Nigerian National Petroleum Corporation (NNPC), Federal Inland Revenue Service (FIRS), Nigerian Customs Service (NCS), Department of Petroleum Resources (DPR), and Federal Ministry of Mines and Steel Development among others.

It also conducted monthly post disbursement monitoring through post-mortem Sub-Committee of Federation Account Allocation Committee (FAAC).

To minimize leakages during the five-year of Mbam that has just ended, the commission embarked on monitoring and reconciliation of collections and remittances by the Collecting Banks engaged by the Federal Inland Revenue Service (FIRS) and Nigerian Customs Service (NCS).

The exercise is a continuous one and over N12.6billion has been established as liability while over N1.8billion has been recovered and remitted to the Federation Account in Central Bank of Nigeria (CBN).

The Commission is also collaborating with FIRS for the reconciliation and recovery of large amount of Tax Liabilities by Federal MDAs, States, and Local Government Councils and the efforts so far have yielded N15 billion Naira recovered.

Another effort to enhance revenue accruals to the Federation Account (FA) was the collaboration with the Federal Ministry of Mines and Steel Development to ensure that Solid Mineral Sector contributed to the FA.

“The Solid Mineral Sector is now contributing to the FA for the first time. Over N11.3 billion has been remitted to the Federation Account from this Sector as at July 2015.”

The Revenue sharing indices which are used in sharing revenue amongst States and amongst the Local Government Councils Mbam said “are usually reviewed periodically to reflect changes in proxies used in computation. In line with this, the Commission successfully reviewed the revenue sharing Indices in 2012 and is being currently implemented. The Commission has also commenced the process of the next review exercise.”

The Commission the RMAFC Chairman stated had “concluded the review of the subsisting Revenue Allocation Formula in 2014 and the Report is awaiting further necessary actions in line with the provisions of section 162(2) of the 1999 Constitution of the Federal Republic of Nigeria (as Amended). In other words, it is with the President waiting for him to forward it to the National Assembly.

The present formula Mbam said has been in existence since 1992 but was only modified in 2002 by the then President to bring the provision in the Act to conform to the 1999 Constitution (As Amended).

With regards to remuneration packages for public office holders, Mbam said “the 2008 Remuneration Package has been in use for more than seven (7) years during which there have been several changes in the socio-economic indices of the Country.
Accordingly, the Commission in pursuance of the above mandate and in consideration of the nation’s economic realities commenced the process of the review of the 2008 Remuneration Packages at the beginning of this year. The review of the 2008 Remuneration Packages has been completed while the accompanying draft bill as appropriate is being finalized by the Attorney General of the Federation before formal presentation to Mr. President for further necessary actions.

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