AGF Overpaid FIRS, DPR by N837bn in 2016 – OAuGF

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  • AGF Overpaid FIRS, DPR by N837bn in 2016 – OAuGF

The recent report of the year 2016 Federal Government Financial Statement submitted by the Auditor General for the Federation, Mr. Anthony Ayine, to the National Assembly has revealed discrepancies in the amount payable to the Federal Inland Revenue Service ( FIRS) and Department of Petroleum Resources ( DPR).

The whooping amount of N837,082,637.24 was paid in lump sum to the Federal Inland Revenue Service ( FIRS) and Development of Petroleum Resources ( DPR).

The Report said:” Our examination of the Accountant-General’s Transcript and FAAC figures revealed that the FIRS and DPR were over paid cost of collection in the month August 2016 in the amounts of N305,922,200.48 and N531,160,436.78 respectively totaling N837,082,637.24.

“It was observed that what was captured in the Accountant-General’s Transcript as payments for the month of August for FIRS and DPR as cost of collection differs from what FAAC approved in the FAAC file.

“It is expected that only figures approved by FAAC are to be paid by the Accountant-General of the Federation. The difference resulted in overpayments of N837,082,637.24 by the Accountant-General to the two collecting agencies.”

Statutorily, the Federal Inland Revenue Service (FIRS) receives 4% of the monthly revenue as its cost of collection. Also, the Department of Petroleum Resources (DPR) receives 4% of monthly revenue it generates from Royalties on crude oil and gas concessions, rentals, gas flaring penalties, among others.

Also, concerning the maintenance of excess crude oil/ppt/royalty account without legal authority, the report by the OAGF has shown that the Excess Crude Account (ECA), revealed that a sum of N361,230,422,517.15 was deducted from total Oil and Gas revenue collected before the balance was paid to the Federation Account.

The report said: “Examination of records and documents presented to the Audit Team in respect of the Excess Crude Account (ECA), revealed that a sum of N361,230,422,517.15 summarized below and classified as PPT/Royalty was deducted from total Oil and Gas revenue collected before the balance was paid to the Federation Account.

“These deductions would appear to contravene the provisions of Section 162 (1) of the Constitution of the Federal Republic of Nigeria, 1999 which states as amended.

About the Author

Samed Olukoya
CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade long experience in the global financial market. Contact Samed on Twitter: @sameolukoya; Email: samed@investorsking.com.

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