Senate Indicts Okonjo-Iweala, Says Her Memo Caused N1.7tn Revenue Loss

Financial Inclusion
  • Senate Indicts Okonjo-Iweala, Says Her Memo Caused N1.7tn Revenue Loss

The Senate Ad Hoc Committee on Alleged Misuse, Under-Remittance and Other Fraudulent Activities has said revenue agencies short-changed the Federal Government to the tune of N1.7tn as unremitted revenue generated between 2012 and 2016.

The panel blamed it on a memo by a former Minister of Finance, Mrs. Ngozi Okonjo-Iweala, who allegedly issued the memo to the agencies to remit 25 per cent of revenue they generated to the Federal Government and spend 75 per cent on their expenditures.

This was contained in an interim report by the committee chaired by Senator Olamilekan Adeola, which was laid before the Senate last week Thursday, a copy of which was sighted by our correspondent on Monday.

The panel said the amount to be remitted to the Federal Government during the period by 93 agencies it investigated was N21.5tn.

It alleged that 25 of the 93 agencies covered defrauded the government of a total of N1,695,585,887,406.

The committee said the agencies chose to comply with a directive by Okonjo-Iweala via a memo dated November 11, 2011, with Reference Number BO/RVE/12235/259/VII/201 by the former minister “to remit 25 per cent only from the revenue generated and use the remaining 75 per cent, which is a clear violation of Section 120 of the 1999 Constitution of the Federal Republic of Nigeria (as amended) and the Fiscal Responsibility Act 2007 as well as the establishment acts of some of these institutions.”

According to the panel, in the report, the Nigerian National Petroleum Corporation ran at a deficit of N3.1tn, while the Nigeria Customs Service, which generated N335.855bn, failed to remit N83.963bn during the period under review.

The committee alleged that the nation’s cash cow generated N15.541tn, while its entire expenditure during the period was N18.657tn, exceeding the corporation’s revenue profile by N3.115tn.

The report also indicted the Federal Inland Revenue Service, which generated N455.5bn but allegedly failed to remit N33.83bn.

Also, the Nigerian Ports Authority reportedly remitted N86.636bn to the Consolidated Revenue Fund when it generated N789.104bn.

Others indicted by the panel are the Central Bank of Nigeria, remitting N13.716bn out of N3.098tn; NIMASA, N184.489bn out of N301.160bn; Nigerian Television Authority, N5.567bn out of N56.817bn.

The report read in part, “Most of the revenue generating agencies deny the Auditor General of the Federation access to their financial books and records, which is in conflict with Section 125, Subsection (3) a (i and ii); and Subsection (4) of the 1999 Constitution of the Federal Republic of Nigeria (as amended).

“Consequently, the committee recommends as follows: that the Senate should amend the laws where necessary to make it mandatory for all revenue generating agencies to accommodate resident auditors to be posted by the Auditor General of the Federation that will have access to all financial records and books, and to ensure compliance with Section 120(i) of the 1999 Constitution of the Federal Republic of Nigeria (as amended).

“The Fiscal Responsibility Act should be amended in a way to compel all agencies and institutions of government on compliance with financial regulations regarding income generation, accounting and remittances.

“The Senate should also amend the laws where necessary to make it mandatory for all revenue generating agencies to accommodate resident treasury officers to be posted by the Accountant General of the Federation that will have access to all financial records and books.”

About the Author

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

20 Comments on "Senate Indicts Okonjo-Iweala, Says Her Memo Caused N1.7tn Revenue Loss"

  1. The percentage of remittance was set to cub the leakages in NNPC at that time. Before the Memo, revenue generating agencies remit figures that are way lesser than the income. The Memo was to set a scale for the corruptions in those sectors. This statement from would enlighten you better on this.

    “The NNPC, which has come under public scrutiny, especially with the revelation by the suspended Central Bank of Nigeria (CBN) Governor Sanusi Lamido Sanusi that the Corporation did not remit $10.8 billion to the federation account, has severally been criticised for lack of transparency in recent years. The NNPC was said to have lost $720 million in potential revenue to crude oil theft and production disruption during in January 2013, and incurred $1.22 billion in the repair and maintenance of its 5,000 kilometers of oil pipelines.

    But if the words of Okonjo-Iweala is anything to go by, then the days of accountability for the State oil Corporation may just be around the corner. “We need to see the justification, with receipts, where the money has been spent. Where this is not so, NNPC will need to account for the money. We need all the money due to the Federation Account and reconciliation with NNPC on the money is under way,” she insisted.. To curb this, revenue-generating agencies must now remit at least 25 percent of their gross revenue, and tie their budget on the balance after remittance.”
    (The Nation)

  2. Did any one ever imagined the gravity of corruption going on in most revenue generating institutions in the country that warranted the Memo? Before this Memo, there was no fixed percentage of revenue these institutions are to remit. They only push in the crumbs of their embezzlement. To end the madness in the country, NOI came up with a brilliant strategy to stop corruption: Each institution must remit at least 25% on the revenue generated. Since, the excuse for them is expenditure, they were allowed to use the remaining 75% on expenditure. Intelligent. Nigeria needs more women and leaders like Okonjo Iweala.

  3. 5. Allow them. When you tell them to read deep and be grounded with good information about Nigeria, they won’t. And that is why whenever any false news comes up, they just fall for such lies.

  4. Recently money was taken from the country’s treasury account. Who took the money? Where did the money go? These are things they should be looking out to get answers to instead of blaming people that are on their own.

  5. They just don’t want to allow that woman called NOI to rest ever since they assumed office. They are just trying to tie their inability to govern or manage the economy to her name.

  6. Is it APC that is running a righteous government? Think! I’m not a political partisan, but one just needs to be bright with judgement. You probably need to read Maina’s story, and several other madness being done by the present government. No government is clean. But twisting the good intentions of others doesn’t make you right. The 25% revenue was to cub the looters in the Oil sector. There no law guiding remittance before her memo. Institutions just remit whatever they feel like.

  7. they should allow this woman to rest now, Haba, after all, she is not the first person that would loot government of their money

  8. when she comes out to defend herself on what she used the money for, then you people will be so shocked that you are just running your mouth about her taking any money to her account

  9. This woman you are talking about didn’t she attacked corruption to make Nigeria more transparent for job?

  10. Don’t let start giving ourselves headache over spilt milk, let look at the way forward and not vice-versa30

  11. shebi, it is this same woman that established each states monthly financial allocation from the federal government

  12. We may think the woman knows a lot about the money because after all she is the Minister of Finance, but not withstanding, put yourself in her shoes, is it everything going under your own roof that you will know?44

  13. let hear her side of the story before we start judging her

  14. Hmm mm , All I know is she is an heroine

  15. I don’t know why Nigerians behave like this, definitely Buhari most have seen a reason why she let that woman be

  16. we are humans and Nigerians at that, E fit be anybody ooh

  17. There is something I’m yet to understand about this APC leadership. Every unfortunate situation is ascribed to the previous administration. You need not deride the efforts of others good or bad, just because you want to gain fame and popular support. That’s not leadership. It is foolishness. I thought the propaganda was ‘Change’. So, just go ahead and change whatever need to be changed and stop boring us with criticisms.

  18. The problem of the country is this stupid blame game. We are fond of pushing the responsibility of the consequences of a misfortune of another, especially when they do not belong to our ‘party’. No nation grows this way. Little wonder we keep retrogressing.

  19. Wait a minute, What should make this headline? Shouldn’t it be the corruption in the agencies mention? NOI who worked in the interest of the country by regulating the fiscal revenue as her duty demands doesn’t deserve these accusing fingers. We ought to pounce on NNPC, Customs, and all of those misfits occupying the honourable positions in the agencies

  20. NOI during her service in the country did not at any time fail to tell Nigerians her fears about the economy and what must be done. She is not one of these cynics in the government today who speak ill of other without any wisdom on what should be done.

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