The Federation Accounts Allocations Committee has declared that the monies yet to be remitted to the repository of the Federal Government by the Revenue Generating Agencies increased to N4.1tn as of June 2024.
FAAC mentioned that this development was in spite of the agencies’ reconciliation and payment of outstanding debts of N94.96bn in May 2024.
Reports reveals that the disclosed amount is $165,067,714.53 (N178.52bn) and N3,917,340,180,696.84, compared to the initial amount of $36,329,376.24 (N51.88bn) and N2,977,561,881,021 recorded in May 2024.
This was revealed in a report at the Federation Account Allocation Committee post-mortem sub-committee meeting, and it was signed by Mohammed Shehu, the Chairman of Revenue Mobilization, Allocation and Fiscal Commission,
A breakdown of the agencies indebted to the government showed that the Nigerian National Petroleum Company Limited owes N940.62bn; Nigerian Upstream Petroleum Regulatory Commission and NNPC owe a combined amount of $23.81m and N1.94tn.
The Federal Inland Revenue Service and NNPC have an unresolved remittance of $141.25m and N1.04tn, while the Ministry of Solid Minerals Development and the Central Bank of Nigeria owe N48.75m.
Reports, gathered two months ago, revealed that the government could lose over N3tn if revenue-generating agencies in the country do not reconcile unremitted earnings collected.
Kabir Mashi, Vice Chairman on the Post-Mortem Sub-committee, who stood in for the commitee chairman, explained that outstanding funds were still undergoing reconciliation with relevant agencies during the monthly reconciliation meeting.
The Federation Account Allocation Committee (FAAC) distributes revenues generated into the Federation Account, which is composed of various sector-specific accounts.
Although mentioning an update in its June meeting, the chairman reported that the total unresolved amount due to the Federation Account from the reconciliation meeting held with the Revenue Generating Agencies in June 2024 was $165,067,714.53 and N3,917,340,180,696.84.
He said the outstanding amounts were still being reconciled with the relevant agencies at the monthly reconciliation meeting.
He added that the Nigerian National Petroleum Company Limited and the Nigerian Upstream Petroleum Regulatory Commission made the revenue reconciliation.
The report read, “Outstanding Federation Account Revenue Arising from Inter-Agencies Reconciliation Meeting held in June 2024: The total unresolved amount due to the Federation Account from the reconciliation meeting held with the Revenue Generating Agencies in June 2024 was $165,067,714.53 and N3,917,340,180,696.84.
“Assessing the impact of the FAAC PMSC on outstanding arrears of revenue inflows due to the federation account.
“For May 2024, the PMSC would like to inform the plenary that as a result of reconciliation with Revenue Generating Agencies, a total sum of $64,073,123.40 equivalent to N94,964,537,885.84 was reconciled and confirmed paid to the CBN designated accounts,” the report added.
The document further explained that the government had recovered a cumulative outstanding of N537.35bn in five months.
“The cumulative outstanding arrears reconciled and paid to the Federation Account from January to May 2024 stood at N537,353,864,835.67.”
“Members should note that these outstanding amounts are still being reconciled at the monthly reconciliation meetings between the agencies and the sub-committee. Furthermore, the sum of $180,230,895.02 and N2,535,352,533,190.87 outstanding payments from the Revenue Generating Agencies before June 2023, were referred to the Stakeholders Alignment Committee and the Sub-Committee awaits the outcome of the reconciliation soonest.
“The sub-committee is working with the Revenue Generating Agencies to ensure that the above outstanding amounts are paid to the Federation Account as soon as possible.”
in response to this, Shizzer Bada, the commissioner of Finance, Kaduna State, expressed concern over the pile up of outstanding arrears of revenue by RGAs against the Federation Account, which was running into trillions of naira between 2023 and 2024.
She further emphasized the importance of promptly finalizing reconciliations with agencies.
This article was written by Tamaraebiju Jide, a student at Elizade University
